A federal appeals court has ruled in favor of Bank of America Corp., finding that the bank did not engage in a predatory lending scheme, as alleged by Cook County, Illinois.
The county had accused the bank of targeting low-income and minority borrowers for subprime loans, leading to a wave of foreclosures that caused millions of dollars in damages to the county.
In its ruling, the appeals court found that the county had failed to prove that the bank had acted with the intent to harm borrowers.
The court also found that the county had failed to prove that the bank’s actions had caused any direct damages to the county.
Bank of America Corp. has prevailed in an appeal brought by Cook County, Illinois, which alleged the bank participated in a predatory lending scheme.
The county had accused the bank of targeting low-income and minority borrowers for subprime loans, leading to a wave of foreclosures that caused millions of dollars in damages to the county.
In its ruling, the appeals court found that the county had failed to prove that the bank had acted with the intent to harm borrowers. The court also found that the county had failed to prove that the bank’s actions had caused any direct damages to the county.
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