Suit: Wells Fargo unfairly targeted low-income homeowners

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Jul 1, 2004 - A suit against thelargest mortgage lender in the US, Wells Fargo, alleges the company consistently engaged in unfair and deceptive lending practices aimed at low-income homeowners in California. The Association of Community Organizations for Reform Now (ACORN),a community advocacy group,filed a class-action lawsuit against Wells Fargo on the grounds the company aggressively solicited homeowners to refinance their mortages at low interest rates but then charged these homeowners higher fees and interest rates than advertised. This marks the second lawsuit ACORN has filed against the company in one month. Earlier in June, ACORN accused Wells Fargo of collecting fees on loans made to low-income people in excess of what Illinois' state law permitted. Such predatory lending practices ultimately affect a low-income homeowner's ability to keep up with payments on mortgages, and in many cases, leads to default of mortgage loans and foreclosure.