First in a string of suits filed, the NAACP is targeting both Wells Fargo and HSBC for lending practices they claim forced black homeowners into subprime loans. Chicago Tribune:
Class-action lawsuits were to be filed against the banks Friday in federal court in Los Angeles, Austin Tighe, co-lead counsel for the National Association for the Advancement of Colored People, told The Associated Press.
Black homebuyers have been 3½ times more likely to receive a subprime loan than white borrowers, and six times more likely to get a subprime rate when refinancing, Tighe said. Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers, he said.
Wells Fargo & Co. is receiving federal bailout funds. Messages left after hours with the banks were not immediately returned.
I know the initial reaction of many to this will be to point out (reasonably) that the borrowers shoulder the burden of understanding what lending contract they agree to, but the claims of the NAACP make a compelling case. The goal of the suit is to force banks to open up on details of past and current lending practices, details banks guard heavily, and fight what Tighe calls “institutionalized racism.” I can’t see that as a bad thing.
Thoughts?
If you look at it BEFORE the financial collapse, wouldn’t it look good that blacks were being given extra opportunities to borrow money?
Not if the “extra opportunity” amounted to nothing but being driven into subprime loans and interest rates when personal credit would’ve granted them much better loans/rates, as the suit claims.
how do we reach jason.
how about the crap racism of the naacp law suit only wanting to protect the black people who were put into these loans thats saying there is alot of white people in these loans as well why are they not included in the law suit they have been wronged just as much and now they are wronged in the lawsuit just because of the color of there skin as well
Can i just say i love the new website guys the first one was great the secound one sucked but this one is awsome way to go keep up the good work
Thisis reverse discrimination. I got burned by Wells Fargo. Why isn’t there a class action lawsuit for everyone that got ripped off by them? I think I will just say I am black so I can get help. How are they going to check?
Talk about racism! There are millions of people in foreclosure thanks to predatory practices and Wells is the main reason, but only the blacks have been targeted? I don’t think so.
jin ann, I think that calling it “reverse discrimination” is a bit extreme. If white people were being placed into sub-prime loans at a higher rate than black people with similar credit scores, income, and down payment, then yes, you probably should be part of special representation.
This is the best news against the preratory lender HSBC.
I have fought with them for years on the way they handle my
mortgage loan with excesssive fees,even held mortgage payment mailed until they exceed the late payment date, in order to correct late payment, forcing me to use certified mail for proof of arraval of payment. Almost, lost my home due to not paying my taxes on time, when they had FULL force control over escrow account. Homecoming would not talk with you or when a manager was asked for or CEO…the gate keeper @ HSBC, TX was told to say …in a meeting…no matter what time you call. I lost thousands of dollars in this HSBC stealing funds from my loans. I even filded with Gerogia Department Of Finance for Lenders..complaint ti the Gove Perdue Office…dorected you back to Georgia Depatment of Finance when you try to report Ga Department of Finance..and took HSBC side/and the Manager hung up on me when I called to say how wrong they were. [I have the letters]
Even upon closing out loan…they ignore my request to clear a matter of taxes in order to force me into another month of loan payment when the loan could have close before the next payment with HSBC. The, upon closing added even more high interest beyond the closing date to be paid by the other new lender.
HSBC should be FORCED to PAY back every person who had a loan under the ADJUSTABLE RATE from 1998 to present time.
I was forced to move my loan from HSBC when every 6 months they were tacking on at least 500.00 to the adjustable rate loan sending my loan from 1300.00 to over 2800.00 in a year.
Certified mail to the CEO level wend unanswered…..only got a response from the Assistant to CEO who was nasty in her response.
I HAVE PROOF OF THE Letters from HSBC to help prove this lender practices.
ALL OF YOU WHO THINK THE NACCP IS FIGHTING FOR BLACK..IS VERY IGNOREANCE…THEY WILL BENFIT ALL THE PEOPLE….
wHEN WILL CHANGE COME TO YOUR MIND……THIS IS A ALL PEOPLE FIGHT..NOT A BLACK….WHITE FIGHT…..CHANGE IS HERE…LET’S ACCEPT AND LIVE TOGETHER……
I have many issues with the NAACP, the main thing is how their words & actions don’t always coincide. They seem to pick and choose where and when their principles apply instead of doing so in a non-judgemental, unbiased manner. Unfortunately, the NAACP has become overly politicized.
I am looking for someone to talk about Wells Fargo and start my lawsuit against them can anyone tell me who do I talk to about filing.
Donna,
did you talk to anyone about starting a lawsuit against Wells Fargo? I’m trying to find out how to become a part of a class action suit. We’ve been trying to get a house refinced from 8.5% to something more current for almost a year now. We’ve sent financial informtion into WF at least seven times and each time they wait so long to review it they tell us to resend the data and then start the process all over again and again and again. Never have we recieved the same information from two WF employees.
There is institutionalized racism here but it is coming from an organization that by it’s very name gives preferential treatment and thus discriminates based on race. That is racism at its core. I am ashamed to live in an America where people can still even hear the letters NAACP together without getting the same shiver up their spine as when the letters KKK or words Aryan Nation are uttered together.
While there certainly may have been some shenanigans going on, after all this is banking we are talking about, my instant reaction after hearing this is coming from a racist organization like the NAACP is that this suit is intended not to bring justice but to help stir even more racism up in our society.
Understand clearly, that if it could be shown that blacks were being given a break on their interest rates the NAACP would be stepping up to shout down anyone even uttering a discriminatory tone. Remember this is an association for the Advancement of Colored People and that doesn’t mean all colors.
Also, be clear that it appears there is no direct evidence of racism on the part of these lenders, only a trend that could be accounted for by the mere location and training at individual branches where these loans are given. This is a fishing expedition where the NCAA will down play anything that even hints of equality.
BTW: Zcart, you are being sarcastic, right?
How do you make a claim. I have Wells Fargo, and they have made my house note so high that I can not even afford my home. They told me that I had to be behind in my payments in order to get any help. When I stop paying they would not take payments and put my house in forclosure. I have paid them 4,333 for back taxes and that when they stop helping us. So in May my family and I might not have a place to live.
WOW i have read through all of this and lets just say it is all intense. I personally feel that the NAACP isn’t only about African Americans but like Zcart said. Either way it is adressin the issue that banks are abusing thier power and making the qualigty of life for people unbearable. I went to a conference at the end of March with NAP ( National People’s Action) and we bumbarded the American Bankers Association where the CEO Ed Yingling who is a lobbyist for Wells- Fargo against fixing the red- linging issues w/ banks. Long story short there are people fighting against the in justice in forclosers.
can some one get in touch with me? how would i know if i’m in the law suit? will wells fargo do anything as far as money to help the people that they(wells fargo) ripped off.i tried to pay wells fargo my payment and they mail all payments back to me.
I’m a 100% disabled veteran. Wells Fargo ripped me off big time to the point I had to file a discrimination lawsuit with HUD. The VA should have protected me but they didn’t. After I complained to my senator, the VA got off their butts and discovered all kinds of (errors?) misdeeds by Wells Fargo… They tried to give me money but I said the entire loan needed to be recalculated and all the extra interest and money taken by juggling numbers should be refunded to me.
Anyone who has been ripped off by WF…. go to your senator. Also, find yourself a lawyer. You only have 2 years to file a civil suit in court from the time your loan closed. If you don’t… Wells Fargo has gotten away.
I am a 100% disabled veteran.In Oct I applied for a Refi through Wells Fargo.I tried to get them to submit the VA Form 26-8937 to verify my income.They refused & kept trying to get more copies of my 1040.I told them this income does not appear.It is nonreportable.They denied my loan because they said they could not verify my income.I have faxed & emailed the CEO of Wells Fargo.I got no response.The VA suggested I get a loan through another lender.There doesn’t seem to be any oversight of a VA loan.I guess this is the thanks I get for putting my life on the line for our country.
Any suggestions would be most appreciated.