NAACP Dismisses Fair Lending Lawsuit Against Wells Fargo
The National Association for the Advancement of Colored People (NAACP) is ending its lawsuit against Wells Fargo Bank, according to a statement today. Since 2007, the NAACP filed lawsuits against more than a dozen of the largest financial institutions alleging violations of the Fair Housing and Equal Credit Opportunity Acts and racial discrimination. Wells Fargo and the NAACP agreed to work constructively on ways to improve fair credit access, sustainable homeownership and financial literacy for black communities and other historically disadvantaged communities. “We brought these lawsuits against lenders to change and stop patterns of racial discrimination and other mortgage lending behaviors that have shattered American lives, families, and neighborhoods,” said NAACP president and CEO Benjamin Todd Jealous. NAACP said Wells Fargo invited it to review the bank's lending practices and to make recommendations to further improve credit availability to racially diverse businesses and consumers, to further assist borrowers facing foreclosures, and to further promote financial literacy and education. “We are committed to working constructively with the NAACP and our communities to help stabilize neighborhoods across our country,” said Jon Campbell, head of Wells Fargo’s social responsibility group. The decision by NAACP to end its suit against Wells Fargo does not affect its litigation against 14 other financial institutions including JP Morgan Chase (JPM), Citibank and HSBC over allegations of unfair lending practices and lending discrimination. Write to Diana Golobay. Disclosure: the author holds no relevant investment positions.