NAACP Sues Major Lenders
March 13, 2009 by Stephen Kersey
Filed under Business
The NAACP filed lawsuits on Friday against HSBC and Wells Fargo, two of the largest mortgage lenders in the country. The suits, which were filed in U.S. District Court in central California, allege that the lenders gave subprime rates to African-Americans who qualified for better rates, and gave better rates to Caucasian customers with similar credit histories.
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The lenders are accused of “systematic, institutionalized racism” in their sub-prime lending. The lawsuits are not seeking damages, rather they just want to see the books and have the problem fixed.
As expected, both companies are denying the allegations.
HSBC spokeswoman Kate Durham said the company does not comment on litigation, but she added, “We stand by our lending practices.”
Wells Fargo spokeswoman Melissa Murray issued a statement saying, “The NAACP’s allegations are totally unfounded and reckless. We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products, or services.”
Source: Wire Reports
