The state of Illinois is taking Wells Fargo to court for discriminatory practices. According to the State Attorney General Lisa Madigan, the bank’s lending company illegally discriminated against minority borrowers. Madigan claims that the bank, “disproportionately sold African-American and Hispanic borrowers high-cost, subprime mortgages, while white borrowers with similar incomes received mortgages with more favorable terms.”
The attorney general accused Wells Fargo of “reverse redlining” at a Press Conference Friday saying,
“As a result of its discriminatory and illegal mortgage-lending practices, Wells Fargo transformed our cities’ predominantly African-American and Latino neighborhoods into ground zero for subprime lending.”
Wells Fargo denies any wrongdoing and calls the lawsuit a “complete mischaracterization” of its practices. The lawsuit cites that a report from the Chicago Reporter newspaper concluded that Blacks were three times as likely as whites to end up with high-cost loans.