Crook Alert!! Wells Fargo and HSBC Accused of Steering African Americans with Sterling Credit Ratings to Subprime Loans

HSBC loses data on 370,000 customers.
HSBC loses data on 370,000 customers.

Systematized Racism or Fair Lending?

According to today's Los Angeles Times (3-13-09) the NAACP has accused Wells Fargo and HSBC of forcing well-qualified African Americans into subprime mortgages. Class action lawsuits against the two banks were to be filed in federal court in Los Angeles on Friday.

Black home buyers have been 3 1/2 times more likely than whites to receive a subprime mortgage according to the NAACP. Wells Fargo termed the charges "reckless and totally unfounded." HSBC said it does not comment on pending litigation but "stands by its fair lending and consumer protection practices.

Similar NAACP lawsuits are pending against a dozen other subprime lenders. "This is systematized, institutional racism" according to the NAACP spokesperson. 

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Comments 10 comments

Tom Rubenoff profile image

Tom Rubenoff 7 years ago from United States

As if things weren't bad enough. Thanks for bringing this to our attention.


Ralph Deeds profile image

Ralph Deeds 7 years ago Author

Yep. I'm sure tht minorities weren't the only ones shoved into subprime loans with high interest rates. Let the buyer beware and shop around before signing mortgage papers. And if the papers aren't consistent with the preliminary understanding, don't sign! From what I've read it's not uncommon for mortgage lenders to try to "jam" borrowers at the signing with added fees and higher rates or other fishhooks for the unwary.


jxb7076 profile image

jxb7076 7 years ago from United States of America

Great hub Ralph - and so true!  Although African Americans were the target, it apprear that they had no shame going after everyone else in certain income brackets and neighborhoods.  

Thanks for sharing.


ColdWarBaby 7 years ago

Is anyone surprised? Really?

More fuel for the fire of revolution. The wheel must continue to turn.


Ralph Deeds profile image

Ralph Deeds 7 years ago Author

Tnx.


AEvans profile image

AEvans 7 years ago from SomeWhere Out There

Holy Canoli!!! Banks are nothing but a bunch of crooks, shady and unethical, if it isn't one thing it is another.:(


Betty 6 years ago

So glad we own our house and farm. The banks would luv to get their hands on your property,,the government under Obama just steels it from you. He and the banks are crooks and liers. I bet the African Americans who where targeted will never vote for Obama again. He has done nothing for you people he has only help the rich!!


Doodlehead profile image

Doodlehead 4 years ago from Northern California

Hey...I'm a white person and HSBC socked it to me. And I had good credit. That's "who" HSBC is.

I don't know about Wells Fargo, but believe me Wells is in it for the money too. Whomeover they can charge a fee to, they will and do whether you are purple, white, green, black, yellow...whatever.


Ralph Deeds profile image

Ralph Deeds 4 years ago Author

I agree and I don't do business with any of the big banks if I can possibly avoid it.


Doodlehead profile image

Doodlehead 4 years ago from Northern California

Ralph---I tried not doing it w a big bank and got a small bank --it got bought out, the next one got bought out and so forth.

Has anyone tried something called "Serve" through Amex? No fees (they say!) and you can transfer money and stuff.

I want to get to the "no bank" stage of life. Ideas, anyone?

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