Karl Heideck Outlines The Lawsuit Filed By The City Of Philadelphia Against Wells Fargo

Recently, Karl Heideck talked about the lawsuit filed by the City of Philadelphia against Wells Fargo. News reports indicate that the City of Philadelphia alleges that Wells Fargo dishonored the Fair Housing Act of 1968. According to the lawsuit, the bank has been using predatory lending practices targeting minority mortgage borrowers. Wells Fargo denies the allegations noting that its practices are fair. Additionally, it argues that the claims contained in the lawsuit are unsubstantiated. The City of Philadelphia filed the lawsuit in the U.S. District Court for the Eastern District of Pennsylvania. The lawsuit is the latest in a chain of problems for the bank that is still recovering from last year’s scandal involving its bankers opening phony accounts in the names of customers.

The city claims that Wells Fargo pushed Hispanic and Black borrowers to obtain riskier loans having higher interest rates irrespective of being qualified for credit for lower-risk mortgages. Moreover, the city alleges that Wells Fargo made it hard for the Black and Hispanic borrowers to refinance their mortgages resulting in a high number of foreclosures compared to white borrowers. The City of Philadelphia investigated the claims a year prior to filing the lawsuit. They analyzed data from loans made by Wells Fargo for a period of ten years. The city’s lawsuit came two weeks after the Supreme Court of the United States made a decision that Miami could sue Wells Fargo and Bank of America under the Fair Housing Act. Justice Stephen Breyer posited that if cities can prove the existence of a direct causal link subsisting between voracious lending practices and the damages thereof, they can sue financial institutions under the Fair Housing Act.

About Karl Heideck
Karl Heideck is a respected contract attorney. Since April 2015, he has been listed by Hire Counsel. Previously, Heideck practiced across the Greater Philadelphia area for over a decade. Heideck practiced as a project attorney for Pepper Hamilton LLP. He also held an associate role at Conrad O’Brien. During this period, Karl Heideck gained extensive experience in filing and responding to complaints, as he specialized on the area of general law.

Karl Heideck is an alumnus of Swarthmore College where he graduated with his Bachelor of Arts degree in 2003. Subsequently, he joined Temple University’s James E. Beasley School of Law where he graduated with a Juris Doctor in 2009. His services range from risk management advisement, compliance consulting, to commercial litigation.