ACORN Protests Wells Fargo Loan Abuse

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ACORN Protests Wells Fargo Loan Abuse Steve Shih
Wells Fargo held its annual shareholders meeting Tuesday afternoon, and as security
officers and customer service representatives fawned over stockholders holding a blue admission ticket, several individuals in red shirts crashed the party protesting
what they saw as predatory lending practices by one of the countrys oldest banks.
Amongst a sea of white faces and double-breasted pinstripes, Cecilia Campillio of Tucson, Arizona tearfully recounted the financial woes her family faced as a result of
signing a loan with Wells Fargo she said included $9000 dollars in closing costs.
Their aim was for us to default and to lose our home and well never give them that
satisfaction. They have to change, they have to reform the way theyre lending money, Campillio said.
According to protest organizers ACORN, the Association of Community Organizations
For Reform Now , Campillios story isnt unique instead they claim that Wells Fargo targets people of color with low incomes across the nation and charges them higher
interest rates as well as higher closing costs and penalties .
They look for people of color, for people in the poorest neighborhoods and give
them loans that they know that they couldnt possibly pay back, said Chris Jones, ACORNs State Board Legislative Liason. Were here to ask the national shareholders
to cut predatory lending from Wells Fargo.
Several shareholders brought together by what they called an "imperative for economic justice" introduced two resolutions this year calling for Wells Fargo to end
its predatory lending practices, as well as stop funding payday lenders like Advance America. And they gave up their seats at the meeting to protestors serving as their
proxies.

ACORN as well as the group United for a Fair Economy or UFE from Boston,
Massachusetts and Community Reinvestment Association of North Carolina or CRA- NC, both of which had representatives at the meeting, helped the shareholders
organize and draft their resolutions.
Marnie Thompson of Greensboro, North Carolina, has been a shareholder for the last six years and has over $2000 dollars invested in Wells Fargo stock, as well as a
$140,000 home equity loan with the bank. But that didnt justify what she saw as
the banks unfair practices.
We were disappointed when the stories started drifting in and we learned that Wells wasnt the type of corporation that we thought they were, Thompson said.

But according to Wells Fargo there is nothing wrong with targeting a lower income
demographic. Chris Hammonds is the director of business development with Wells Fargo and sees it as a positive.

Were the top lenders in low to moderate incomes in the Bay Area, were helping people achieve the dream of home ownership, Hammond said.
In the meeting, CEO Richard Kovacevich deflected criticism and calls for him to take
less stock option rewards in his compensation package with grace. He choose instead to point out how much money Wells Fargo had donated to charity and how much
good the banks team members had done in the community.
As for the predatory lending claims and funding of the payday lending industry, the CEO simply said, We believe that Wells Fargo should not discriminate against an
entire industry that includes payday-lending businesses when they are being operated responsibly and legally and provide a service needed by some people for
temporary financial relief. If something we have done has been untoward we will try
to make it right. Wells Fargo does not, I repeat, does not practice predatory lending. Wells Fargo prices for risk not race.

This statement proved good enough for most of the shareholders in the meeting, as
neither resolution passed. But that doesnt discourage Marnie Thompson.
The fact that the resolution came up at all and we got Wells to sit up and take notice is encouraging and support for this resolution will grow over time, she said.

Hopefully victims like Cecilia Campillio will feel the same hope at next years meeting.

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