NJ Bankruptcy Law Firms

66 East Main Street, 3rd Floor
Little Falls, NJ 07424

New Jersey Bankruptcy Lawyer!

With 30 Years of Proven results!
"I personally meet with You and represent You!"
"I have never Lost a Chapter 7 Bankruptcy Case"
"Experience = Results"
About Ralph A. Ferro Bankruptcy Lawyer

Predatory Lending

Predatory Lending

Written and Verified by Ralph A. Ferro, Jr., Esq.


  • May 2017 the City of Philadelphia sued Wells Fargo for predatory lending violations..
  • Cause of action:    Violated the Federal Fair Housing Act.
  • The City alleged that, since 2004, Wells Fargo steered minority borrowers into higher cost, riskier loans than white borrowers even if they qualified for loans with better terms.
  • The City alleged Wells Fargo  refused to let minority borrowers refinance.
  • Black and Hispanic borrowers were much more likely to go into foreclosure on the loans that Wells Fargo gave them.
  • Philadelphia’s higher default rates for minority borrowers hurt the City financially:  lower property tax revenues and higher costs to combat crime and blight.


  • December 2017 Wells Fargo agreed to pay the City of Philadelphia  $10 million to settle the predatory lending lawsuit   Wells fargo predatory lending.
  • However, Wells Fargo denied the allegations in Philadelphia’s claim.
  • $8.5 million will be used to provide down payments and closing costs for low and moderate-income families.
  • The remainder of the money will go to preventing foreclosures and revitalizing vacant lots.
  • Predatory lending practices are not right and must be eliminated.

A real win for Philadelphia since their practices hurt so many.

If you feel you have been a victim of predatory mortgage lending, call me for a free bankruptcy consult.    Maybe you just borrowed more than you can afford.   You may still want to keep your home.   I will help you to determine if filing bankruptcy is right for you.

Contact me today:   Ralph A. Ferro, Jr., Esq.   (201) 446-5904   – You may be able to stay in your home.    With a Chapter 13 bankruptcy, you can spread out your mortgage arrearages over a 5-year period.