JP Morgan Chase to fork out $55m to settle mortgage discrimination claims
JP Morgan Chase has agreed to pay $55m (£44.9m) to put to bed claims that it charged borrowers from minority backgrounds more for mortgages.
The US Justice Department alleged the banking giant willfully went against the US Fair Housing Act and the Equal Credit Opportunity Act between 2006 and 2009, and showed "reckless disregard" for the rights of more than 50,000 African-American and Hispanic customers.
Court documents, seen by Reuters, claim the bank allowed mortgage brokers to charge borrowers from minority backgrounds more for home loans than white borrowers, despite having the same credit score, leading to a total of tens of millions of additional costs.
"We've agreed to settle these legacy allegations that relate to pricing set by independent brokers," said a spokeswoman for JP Morgan. "We deny any wrongdoing and remain committed to providing equal access to credit."