Karl Heideck Explains the Law Suit against Well Fargo as Redlining

Karl Heideck
Karl Heideck

According to news reports, Philadelphia has recently filed a lawsuit against Wells Fargo. In the lawsuit, Philadelphia is suing Wells Fargo for the violation of rights according to the Fair Housing Act of 1968. This lawsuit came two weeks after the ruling of the Supreme Court. This ruling was made for banks that have the habit of targeting minorities with risky loans. Philadelphia’s lawsuit that was filed in the district court stated that Wells Fargo intentionally pitched a high-risk loan against black borrowers with Latino roots. This is regardless of the fact that the credit packages allowed them to settle for better loans. This lawsuit goes ahead to state that Wells Fargo had the knowledge of this suspicious imbalance and even though true, the management played a significant role in promoting the loan processing. The claims resemble the complaints made by clients from Miami.

Response by Karl

In response to the case of Philadelphia against Wells Fargo, Karl Heideck, a professional lawyer residing in America offered an explanation of what the lawsuit entails. Karl states that Wells Fargo is redlining the black Latino society. Redlining is defined as the practice of drawing lines against certain clients by virtue of their neighborhoods for them not to be granted loans. This is a practice that has been in the banking industry since the 1930s.

According to Heideck, when redlining is practiced because of a distinct society of ethnicity, there is a constitution injustice, and it is prohibited. In the case of Wells Fargo against Philadelphia, the bank allegedly denied a particular ethnicity the access of good interest loans even though they are available to other societies. Redlining is constitutionally wrong and hence the lawsuit. If it is practiced on the basis of racial cards or neighborhood, it calls for a court hearing.


Karl Heideck is an attorney in Philadelphia. He graduated from Swarthmore College with a bachelor of arts. He advanced his studies at Temple University in Beasley Law School in 2009. The Hire Counsel listed him in April 2015. Heideck offers law professional advice through articles. Heideck also offers advice on successful tips to becoming a professional lawyer.

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