Following a $2.5 billion judgment for securities fraud last year against HSBC Group, the financial firm is facing another lawsuit, this time for predatory lending and racial discrimination.
Miami consumer rights lawyers recognize that while the foreclosure crises impacted almost everyone in some way, the kinds of practices in which HSBC allegedly engaged assured that poor and minority borrowers would suffer disproportionately.
The Cook County, IL lawsuit (similar to claims brought by officials in Cleveland, Memphis and Baltimore) alleges that banks preyed on minority borrowers. It's alleged in County of Cook v. HSBC North America Holdings Inc. that HSBC knew that these borrowers weren't qualified to take out the loans for which they were applying, but they offered them anyway. In other cases, the bank reportedly meted out subprime, high-interest mortgages to minority borrowers who otherwise would have been qualified for prime loans.