Karl Heideck Discusses Wells Fargo Lending Practices

Philadelphia attorney Karl Heideck has been called upon to explain a lawsuit filed by the city of Philadelphia against Wells Fargo bank. At the heart of the lawsuit is a contention that Wells Fargo is engaging in practices that violate the Fair Housing Act of 1968.

The city of Philadelphia contends that Wells Fargo is engaging in unfair lending practices that impact minorities. Specifically, the bank is only making available high-interest rate, high-risk home mortgage loans to minority borrowers. This is occurring even though these individuals fully quality for more favorable traditional home mortgage loans.

The alleged conduct by the bank is akin to what historically has been called redlining. Redlining is a practice by some banks that started in the 1930s. Banks literally would draw redlines around certain neighborhoods. These institutions would refuse to lend money for home purchases in these neighborhoods. These were neighborhoods with minority populations.

The lawsuit involving the City of Philadelphia represents only the latest in a series of controversies surrounding this large bank. Last year, Wells Fargo made headlines when its employees were found to be setting up fake accounts, using actual customer information. The bank’s employees were engaging in this inappropriate conduct to meet sales quotas established by the institution.

Karl Heideck has been practicing law in Philadelphia, and throughout Pennsylvania, for over a decade. He obtained his law degree from Temple University. Before attending law school, Heideck graduated from Swarthmore College, with a degree in English language and literature.

Heideck is a skilled litigation attorney. He also practices in the commercial, products liability, and employment law arenas. Karl Heideck provides representation to clients in the areas of regulatory compliance and risk management as well. He has established a solid reputation for his abilities in legal research and writing. These are crucial skills for an attorney, including a litigation lawyer.

For more information about Karl Heideck, just click here.

Leave a Reply

Your email address will not be published. Required fields are marked *