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Karl Heideck Files Suit Against Wells Fargo Representing The City Of Philadelphia

Karl Heideck has filed suit on behalf of the city of Philadelphia against the Wells Fargo banking company claiming that the corporation routinely withheld low-interest credit offers to certain individuals in certain sections of Philadelphia when they applied for housing loans. The suit claims the lender was steering black and Hispanic borrowers away from low-interest mortgages even though they were qualified for the lower rates. According to attorney Karl Heideck, this practice violated the Fair Housing Act of 1968 because race is one of the primary criteria used to restrict loan offers and approvals.

Karl Heideck claims Wells Fargo was using a 1930s company policy that is called redlining, which is the process of designating an area of the city where most residents are primarily low-income and ethnic families. The final result of the policy is the development of de facto segregated communities that violates the intention of the 1968 housing legislation. The city also claims it creates areas of the city where crime is unusually high, requiring the city to provide a higher level of security in keeping certain neighborhoods safe.

While this case could prove complicated for the city to prove, this is by no means a new situation for Karl Heideck. Heideck is a Philadelphia attorney who focuses his practice on corporate, business, and commercial law and has handled similar cases in the past. Wells Fargo is claiming the lawsuit is effectively frivolous and unsubstantiated, but that is also what the company said when they were found guilty of opening bogus bank accounts in the name of current customers without informing the account holders. Wells Fargo’s track record of breaking the law by company policy speaks for itself.

Karl Heideck is a graduate of Swarthmore College Class of 2003 and later earned his Juris Doctorate from Temple University Beasley School of Law. Karl Heideck has continued practicing in the greater Philadelphia area since his 2009 graduation with honors. His current practice concentration is civil litigation, compliance and risk management, and banking fraud resulting from complex practices that skirt the law in a variety of areas. Heideck is an attorney with Grant & Eisenhower PA of Philadelphia.

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This entry was posted on August 25, 2017 by .