Illinois Attorney General Lisa Madigan is suing Wells Fargo & Co. for allegedly steering blacks and Hispanics into loans with less favorable terms than those offered to white borrowers at the same income levels.
"Wells Fargo engaged in illegal discrimination," Madigan said Friday at a Chicago news conference where she announced the filing of the consumer fraud lawsuit in state court.
The subprime rate loans were made to Chicago-area residents between 2005 and 2007, the attorney general said. Madigan said she is seeking a court order ending the practices together with restitution for injured borrowers.
Debora Blume, a Wells Fargo spokeswoman, did not immediately return a call seeking comment.