Wells Fargo Settles Discriminatory Lending Suit, Pays Tennessee Towns Memphis, Shelby $432 Million: ...Memphis and Shelby County filed a lawsuit in 2010 against Wells Fargo, accusing the bank of targeting of African-American neighborhoods for predatory loans. The suit alleged the practice, which dated to 2000, resulted in excessive foreclosures in those neighborhoods.
Wells Fargo has denied the allegations, citing its longstanding commitment to fair and responsible lending. The city of Baltimore has filed a similar suit against Wells.
"We agreed that it was in the best interests of everyone involved to work together rather than to continue to be involved in a protracted legal fight," Leigh Collier, Wells Fargo's regional president for the mid-south region said in a statement.
The Memphis agreement comes as Wells Fargo faces potential civil charges from the U.S. Department of Justice under laws that prohibit discrimination against minority homebuyers.
