Black, Latino, and Native American Indian leaders at an online briefing on the “racial wealth gap” said it will take a tidal wave of public pressure to win passage of legislation outlawing predatory lending and other discriminatory practices in the face of opposition from the banking lobby.
Charges of premeditated racist discrimination by the nation's top banks were given additional boost by the city of Baltimore which filed affidavits recently in a suit against Well Fargo for steering minorities to purchase sub-prime loans. Similar suits have been filed in several states including Texas, Tennessee and California and by the the NAACP alleging racial bias in predatory lending. The case was initially presented last January. The complaint runs some 825 pages.
Congress is considering passing a bill that will cap interest rates on consumer loans at 36 percent to prevent lenders from taking advantage of people who rely on these kinds of loans to meet basic needs or to cover unexpected expenses, like car repairs or vital medical procedures, many of whom are minorities and low-income people.