The case between the city of Philadelphia and Wells Fargo Company has drawn a lot of attention. In a lawsuit that was filed on May 15th, the city alleges that the bank has been involved in several malpractices such as violating the Fair Housing Act of 1968 and using unfair means against minority mortgage borrowers. The allegations also note that the bank has been offering loans with higher interest rates to the black borrowers as compared to the whites. It is also alleged that the bank never allowed for the borrowers to refinance their mortgages. Therefore, the blacks got a high percentage rate in the mortgages that they had applied for from the bank.
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In an investigation carried out by the city of Philadelphia, it found out that the bank had been involved in the practice for a period of more than ten. That explains why the city pressed charges besides the malpractices. The practice that Wells Fargo was involved in is known as redlining. According to hackronym.com, it describes a situation where different banks have a red line to communities and societies that they do not want to give loans. When this is done due to sidelining communities, then it is illegal and unconstitutional. However, when it is done in a situation where the neighborhood is located in a place that is flooded, then it is not illegal. While this was the case, Wells Fargo on its part has come out strongly to deny the allegations by the city of Philadelphia. In fact, it released a statement saying that the accusation was uncalled for because the bank has been serving everyone equally for more than 100 years.
About Karl Heideck
Karl Heideck is one of the top lawyers in the city of Philadelphia and is known to be an experienced litigation attorney. Karl Heideck attended Swarthmore College where he received his Bachelor of Arts Degree. He, later on, joined E. Beasley School of Law in 2006 then graduated in 2009 and acquired his license in 2010. According to records, Karl Heideck has been practicing law for more than seven years now.