Miami Gardens sues major banks over predatory lending

Bank of America, JPMorgan Chase among institutions named in federal complaint

Jun.June 30, 2014 09:45 AM

Miami Gardens is going after four of the biggest banks in the nation over alleged predatory lending aimed at minorities.

The city filed a federal lawsuit in Miami against Bank of America, Citigroup, JPMorgan Chase and Wells Fargo earlier this month. Miami Gardens is being represented by the same group of lawyers that sued all but JPMorgan Chase on behalf of the City of Miami in December 2013. That case remains pending.

Miami Gardens accused the banks of causing a reduction in the property tax base, increased spending on foreclosed homes and a decline in property values through their mortgage lending practices, according to the Miami Herald. It wants the court to determine that the banks violated the Fair Housing Act and award the city an unspecified amount of damages. A permanent injunction against the banks and their employees is also sought.

The banks deny the allegations in both Miami Gardens and Miami. They have pending motions to dismiss the Miami cases. [Miami Herald]Eric Kalis

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