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Federal investors found that National City Bank systematically charged black and Hispanic borrowers more in interest and fees on mortgages from 2002 through 2008.  This resulted in statistically significant discriminatory pricing disparities based on race and national origin, and caused more than 41,000 Hispanic borrowers and more than 34,000 African-American borrowers to overpay, authorities said.  National City, now PNC Financial Services Group, will pay $35 million to make up for this discriminatory lending practice.
A two-year Consumer Financial Protection Bureau probe of Cleveland-based National City’s lending portfolio, revealed Monday, found that the bank charged around 0.1 percentage point more on loans to 75,000 black and Hispanic borrowers. That added an average of $160 per year to payments.   Law suit:  Consumer Financial Protection Bureau et al v. National City Bank, U.S. District Court, Western District of Pennsylvania.
“This settlement will provide deserved relief to thousands of African-American and Hispanic borrowers who suffered discrimination at the hands of National City Bank,” said Attorney General Eric Holder. “As alleged, the bank charged borrowers higher rates not based on their creditworthiness, but based on their race and national origin. This alleged conduct resulted in increased loan prices for minority borrowers. This case marks the Justice Department’s latest step to protect Americans from discriminatory lending practices, and shows we will always fight to hold accountable those who take advantage of consumers for financial gain.”
“With today’s settlement, thousands of African-American and Hispanic borrowers who were discriminated against by National City Bank will be entitled to compensation,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We look forward to further collaboration with the Bureau in protecting consumers from illegal and discriminatory lending practices.”

The post National City Discriminatory Loans Costs $35 M appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

This is the case of Melika Murray who comes to me from North Chicago which is Lake County, Illinois for a bankruptcy consultation.  Ms. Murray has never filed for bankruptcy before, even though she states that she has been struggling for debt for over 20 years.  She owns no real estate.  She is renting and+ Read MoreThe post Chapter 7 Bankruptcy Would Provide The Fresh Start Needed appeared first on David M. Siegel.

U.S. Sen. Elizabeth Warren, a Massachusetts Democrat, introduced legislation on Tuesday that would prohibit employers from requiring job applicants to disclose their credit history.
In a conference call with reporters, Warren argued that a person’s poor credit history is often the result of medical bills, job loss or divorce and does not reflect his ability to perform a job.
A credit reports includes information on the bank accounts and credit card accounts opened by a person and whether those accounts are paid up. It indicates liens, bankruptcy filings and court judgments. A 2012 report by the Society for Human Resource Management found that around half (47 percent) of companies conduct credit checks on some or all prospective employees.
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The post Bill to Prohibit Running Credit Checks on Job Candidates appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

This is the case of Jeffrey and Debra Miller who live in Gilberts, Illinois which is in Kane County Illinois.  They were here for a consultation on either Chapter 7 or Chapter 13 bankruptcy.  As we run through the facts here, they have not filed a bankruptcy before.  They do own a home with a+ Read MoreThe post Bankruptcy Filing Will Depend Upon The Means Test appeared first on David M. Siegel.