5 Major Lending Institutions That Paid Millions For Discriminating, Taking Advantage of Black People

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Wells Fargo

A government investigation uncovered 34,000 cases where Wells Fargo charged Black and Hispanic borrowers higher fees and rates on mortgages compared to their white counterparts, forcing the bank to pay out $175 million in 2012.

The investigation, which looked at mortgages made from 2004 to 2009, also revealed that Black and Hispanic homeowners were given more expensive mortgages and when they could not keep up with payments, the banks refused to refinance mortgages on terms equal to white borrowers.

In 4,000 out of the 34,000 cases, minority borrowers, some who qualified for cheaper loans, were steered into subprime mortgages.

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