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US Supreme Court to Assess Whether Banks are Liable for Predatory Lending to Minorities
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US Supreme Court to Assess Whether Banks are Liable for Predatory Lending to Minorities

US Supreme Court to Assess Whether Banks are Liable for Predatory Lending to Minorities

Fintech Nexus Staff·
FinanceNews RoundupUSA
·Nov. 8, 2016·1 min read

A legal case initiated by the city of Miami, Florida has reached the Supreme Court; the case (a combination of two earlier cases) claims that banks, including Bank of America and Wells Fargo, are financially liable for a decade of targeting blacks, Latinos and other minorities for loans with risky terms, including prepayment penalties, negative amortization and no documentation; there is concern that the case may be delayed until the Supreme Court regains a tie-breaking ninth Justice, or result in a return to the lower courts.  Source

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