Supreme Court Agrees to Hear Predatory Lending Case

When the U.S. Supreme Court returns for its next term in the autumn, it will decide on whether Miami’s municipal government can sue two major banks that it has accused of predatory lending aimed at minority borrowers.

According to a Reuters report, the court has agreed to hear the appeals by Bank of America Corp. and Wells Fargo & Company of a lower court's decision that allows Miami to pursue a lawsuit against them under the Fair Housing Act. Last September, the U.S. Circuit Court of Appeals overturned a lower court's decision that dismissed lawsuits filed by Miami against the two banks plus Citigroup, which involved charges of steering black and Hispanic borrowers into home loans they could not afford. Miami’s city officials blame the banks for lost property tax revenues and diminished property values as a result of this alleged predatory lending.

Citigroup opted not to take part in this appeal to the Supreme Court, which returns to session in October.