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Corporate Law and Your Business
Major corporations and small businesses alike need to understand how corporate law will effect their business practices. Before you go into business for yourself learn the nuances of corporate law, and figure out whether or not you will need a corporate lawyer to set up your business structure.
The Grey Area Of Law - Civil Lawsuits
Contrary to popular belief, most courtroom cases actually involve civil lawsuits. If you have be summoned to court as the defendant in a civil lawsuit you need to find out how to protect your rights as well as your assets. Failing to appear in court for a civil lawsuit can lead to criminal charges in some cases.
DUI Laws and Your Rights
Drunk driving is one of the leading causes of traffic accidents and vehicular homicide across the world. Although DUI laws are tough, every person accused of DUI is not necessarily guilty. Learn what your rights are and find out what steps you need to take if you are accused of driving while intoxicated.
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Home · News · Federal Reserve Fines Wells Fargo $85 Million
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Federal Reserve Fines Wells Fargo $85 Million
The U.S. Federal Reserve has just announced that it has fined Wells Fargo $85 million. The fine was imposed for allegedly urging people with good credit to take out expensive mortgages and for falsifying information on loan applications. This marks the largest fine that has ever been issued under the consumer protection law and it is the first to be levied for predatory lending practices during the current housing bubble.The Federal Reserve claimed that many potential housing buyers could have qualified for a loan with prime rates but they were pushed into subprime loans. They also claimed that some employees falsified income information on applications to get buyers approved that could not have gotten a loan based on their income. Sales quota policies and employee compensation were blamed for encouraging Wells Fargo employees to falsify information.
In the order, Wells Fargo is required to investigate all subprime loans that were made from January 2006 up until June 2008. The Federal Reserve has estimated that those eligible for compensation should receive between $1,000 and $20,000 in restitution. The financial institution has already said that it has compensated some 600 mortgage holders through an internal investigation.
The loans were primarily used to refinance current mortgages between 2004 and 2008 and involve approximately 10,000 borrowers. Wells Fargo was also ordered to compensate any borrowers that were affected by the companies alleged activities. Although the nation's fourth largest bank refuses to admit and wrongdoing they have agreed to pay the $85 million in fines.
30.07.2011. 10:47