Morgan Stanley Sued for Racial Discrimination in Pushing Predatory Loans to Black Homeowners
10/22/2012, 3:22 p.m.
"Congress enacted these civil rights statutes to require that banks like Morgan Stanley are responsible for ensuring that their policies and practices do not perpetuate historical patterns of discrimination and banks have the duty to provide a level playing field for all consumers," noted Stuart Rossman, director of litigation at the National Consumer Law Center. "Ultimately, economic justice is a civil right in our country. This landmark case brought on behalf of African-American homeowners asserts their rights under those laws and seeks to protect the greater Detroit community from continuing to be burdened because of past acts and patterns of discrimination."
Among those affected is Rubbie McCoy, who said her mortgage broker falsified information on her loan application even though she objected. The broker also omitted critical details, including the fact that after two years, New Century would no longer pay the taxes or insurance on her loan. Those added costs have prevented her from making a payment since 2011.
"I've seen firsthand the devastation banks like Morgan Stanley have caused in communities like mine. When I first moved into my home, I knew every neighbor and most of the homes were occupied. Today, the majority of homes stand abandoned and stripped," McCoy said. "I don't like to say that I am losing my home, instead I tell my family that I'm fighting for my home. The truth is I'm afraid that today will be the day a sheriff kicks us out. No one should live with this fear."
To see the complaint, go to: www.aclu.org/racial-justice/adkins-et-al-vs-morgan-stanley-0