Tags: HSBC | predatory | lending | Illinois

HSBC Accused of Predatory Lending by Cook County, Illinois

Tuesday, 25 Mar 2014 07:40 PM

HSBC Holdings Plc was accused in a government lawsuit of targeting minority borrowers in Chicago with high-cost subprime mortgage loans that caused a disproportionate number of foreclosures among those borrowers.

Cook County, the largest county in the U.S. after Los Angeles County, seeks unspecified compensatory and punitive damages for its alleged costs to police and maintain deteriorating neighborhoods and from lost tax revenue on vacant properties, according to the complaint filed March 21 against HSBC North America Holdings.

The Los Angeles City Attorney last year filed similar lawsuits against Citigroup Inc., Wells Fargo & Co. and Bank of America Corp., seeking to hold them liable for the high number of foreclosures in the city’s minority neighborhoods after the collapse of U.S. housing market. Those banks have said the city’s claims have no merit.

“HSBC Plc entered the U.S. subprime mortgage market in 2003 with the acquisition of Household and by 2006 had become the largest subprime lender and the second largest subprime loan servicer in the United States,” Cook County said in its complaint in federal court in Chicago, referring to HSBC acquiring Household International Inc. in 2003.

Rob Sherman, a spokesman in New York for London-based HSBC, declined to comment on the lawsuit.

Cook County, including Chicago, has a population of more than 5.2 million residents in 2012, according the U.S. Census Bureau.

The case is County of Cook v. HSBC North America Holdings Inc., 14-2031, U.S. District Court, Northern District of Illinois (Chicago.)

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Companies
HSBC Holdings Plc was accused in a government lawsuit of targeting minority borrowers in Chicago with high-cost subprime mortgage loans that caused a disproportionate number of foreclosures among those borrowers.
HSBC,predatory,lending,Illinois
245
2014-40-25
Tuesday, 25 Mar 2014 07:40 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved