Attorney Karl Heideck Explains Why Philadelphia Has Sued Wells Fargo Bank

Lawsuits are filed for various reasons. The lawsuit can be between individuals, business or even cities. The city of Philadelphia has filed a lawsuit against Wells Fargo, which is a bank that boasts of serving the people of Philadelphia for over 130 years. The City is certain that the bank has been discriminating people according to race. The blacks and Hispanics, who make up the largest population of the cities’ residents, have fallen into the mischievous trap of the bank.

Bank loans and mortgages are given to people based on the neighborhood they live in. For the blacks and Hispanics, who live in certain neighborhoods, the interests on their loans are much higher than their counterparts, who live in predominantly white neighborhoods. The bank does not base its calculation on an individual’s credit worthiness. A white, who earns the same as a black, is given a better deal with low interest.

The city of Philadelphia says that the bank has broken the Fair Housing Act of 1968 and should thus be held liable for the consequences of its action. Due to the high unmanageable rates that Wells Fargo has charged the minority, crime rates have increase and so are the instances of vandalism. The city has also experienced a decrease in property value in such neighborhoods.

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The lawsuit comes at a time when the bank is just recovering from the scandal where it was alleged to create fake customer accounts to push the bankers to meet their sales goal. Wells Fargo has denied the redlining allegations saying that the claims are unsubstantiated.

Karl Heideck is a Philadelphia based attorney, who specializes in litigation. Currently, he is working at cases involving bank frauds such as liquidity and security frauds. Karl Heideck has also worked in risk management and has been instrumental in solving mortgage crisis.

Karl Heideck got his college education from Swarthmore College, where he studied arts in the English language and literature, and later joined the Temple University Beasley School of law, where he graduated in 2009 with honors. He has outstanding skills in the practice of law, and he has gained a lot of experience through the years.

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