article by Adebola Adeniyi via venturesafrica.com
On Wednesday, a United States Attorney, Preet Bharara, filed a suit in Manhattan against multinational bank, JPMorgan Chase & Co., after over 53,000 African-American and Hispanic borrowers were charged more for home loans than white borrowers with the same credit and risk profiles by the bank’s authorised mortgage brokers.
JPMorgan Chase & Co was indicted by the mortgage brokers the bank engages in originating loans, and in this case, wholesale loans were disbursed to clients. According to an allegation made by a compliant, Chase allowed brokers to change rates charged for loans from those initially set based on objective credit-related factors.
The banking institution was found guilty of knowingly violating the US Fair Housing Act and the Equal Credit Opportunity Act between 2006 and 2009. There were claims that the bank acted with careless disdain towards over 53,000 African-American and Hispanic borrowers. The spokeswoman for JPMorgan, Elizabeth Seymour said the bank agreed to settle the allegation made by the complaint but denies any form of misconduct reaffirming that the bank is dedicated to providing equal access to credit.
To read full article, go to: JPMorgan to pay $55 million in racial discrimination suit – Ventures Africa
Also: http://www.usatoday.com/story/money/2017/01/18/us-accuses-jpmorgan-mortgage-discrimination-lawsuit/96710486/
Posts tagged as “Equal Credit Opportunity Act”
article via clutchmagonline.com
The Justice Department and the Consumer Financial Protection Bureau on Tuesday announced a settlement resolving allegations that Torrance-based Toyota Motor Credit Corp. discriminated against black and Asian/Pacific Islander borrowers in auto lending.
Toyota has agreed that it will not increase rates it quotes to car dealers as well as limiting the discretion of its dealers to charge interest rate markups.
The $20 million settlement will provide compensation to those who took out loans from Jan. 2011 up until last month. In addition, the company will also pay $2 million to black and asian borrowers with markup disparities.
“TMCC does not tolerate discrimination of any kind, even perceived or unintentional, from its employees or business partners — this principle extends to fair lending practices,” according to the company.
“While TMCC respectfully disagrees with the agencies’ methodologies to determine whether industry lending practices have been discriminatory, the company shares the agencies’ commitment to ensuring that consumers can count on competitive and fair auto financing options,” the statement continued. “The actions TMCC will take under this agreement are intended to further that commitment.”
The Equal Credit Opportunity Act prohibits such discrimination in all forms of lending, including auto lending.