Wells Fargo to Pay $175M Settlement

    DALY CITY, CA - JULY 12: Customers use ATMs at a Wells Fargo Bank branch office on July 12, 2012 in Daly City, California. The Justice Department announced Thursday that Wells Fargo Bank, the largest residential home mortgage originator in the United States, will pay nearly $175 million to settle accusations of discrimination against qualified African-American and Hispanic borrowers between 2004 and 2009. The alleged discrimination is in violation of fair-lending laws. (Photo by Justin Sullivan/Getty Images)

    Justin Sullivan / Getty Images

    Wells Fargo has agreed to pay a $175 million settlement for allegedly discriminating against African-Americans and Hispanics, the Department of Justice announced Thursday. The bank was accused of violating fair-lending laws by pushing minority borrowers to subprime mortgage loans and charging them higher rates than white borrowers because of their race. More than 34,000 people were affected by these practices, according to Justice Department officials. Wells Fargo denies any wrongdoing and released a statement saying the bank settled solely to avoid litigation.

    Read it at The Washington Post