Madigan sues Well Fargo, alleges discrimination

July 31, 2009 4:54:30 PM PDT
The State of Illinois is suing one of the country's biggest mortgage lenders for allegedly discriminating against black and Latino homeowners.Attorney General Lisa Madigan filed the lawsuit against Wells Fargo Friday.

The suit alleges that Wells Fargo sold minorities high-cost subprime mortgage loans while white borrowers with similar incomes received lower-cost loans.

"The same failed subprime loans that have deprived thousands of families of the American dream, and they have left once vibrant neighborhoods blighted with vacant homes," Madigan said.

The lawsuit calls for rescinding the contracts entered into between Wells Fargo and the consumers allegedly discriminated against, and it also seeks full restitution to those consumers.

Wells Fargo issued a statement calling the lawsuit disturbing, saying the company has policies and systems in place to ensure race is not a factor in pricing or products.


Load Comments