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Wells Fargo Sued By Illinois For Discriminatory Lending

First Posted: 08/31/09 06:12 AM ET Updated: 05/25/11 02:45 PM ET

Wells Fargo

CHICAGO (AP) -- The state of Illinois is suing one of the nation's largest mortgage lenders for allegedly discriminating against black and Latino homeowners.

Attorney General Lisa Madigan filed the lawsuit against Wells Fargo Friday in Cook County Circuit Court.

The suit alleges that Wells Fargo sold the minorities high-cost subprime mortgage loans while white borrowers with similar incomes received lower-cost loans.

Madigan says in a release that the practice helped transform black and Latino neighborhoods into "ground zero" for subprime lending.

The lawsuit seeks to rescind the contracts entered into between Wells Fargo and the consumers allegedly discriminated against.

It also calls on the court to grant full restitution to those consumers.



Filed by Ben Goldberger  |