Wells Fargo to Pay $175 Million to Settle Lawsuit
Wells Fargo Bank has agreed to settle a lawsuit brought by the Department of Justice on behalf of some black and Hispanic mortgage loan customers. Those customers claimed that independent brokers contracted by Wells Fargo had charged higher rates and fees to more than 30,000 minority borrowers from all over the country between 2004 and 2009. White borrowers with the same credit risk were given lower rates.
The DOJ also claimed that more than 4,000 minority borrowers were only qualified into costlier subprime mortgages when white customers with similar credit risks had received regular loans.
The bank agreed to pay a total of $175 million dollars and $125 million of the settlement funds will go to individual borrowers.