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US: JP Morgan Chase to pay $55m over Racial Discrimination

  • JP Morgan Chase, the biggest bank in the US has agreed to pay $55m (£44.6m) for settling claims of racial discrimination against 53,000 mortgage borrowers.

    Though the bank has denied the accusation by the US Justice Department but it said that it is ready to settle the charges. JP Morgan was accused to let mortgage brokers charge comparatively much higher fees as well as interest rates to African-American or Hispanic borrowers.

    As per the court documents, the offences were done between 2006 and 2009 where two US laws, the Fair Housing Act and the Equal Credit Opportunity Act, were broken.

    According to the US government, highers charges and fees were applied to ethnic minority mortgage borrowers, and not the white home-buyers with the same credit scores.