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Chase Bank Sued For Discriminating Against Black And Latino Customers

In one of its final moves, the Obama administration hit JPMorgan Chase & Co. with a one-two punch in the form of two discrimination lawsuits: one for discriminating against black and Latino mortgage borrowers and another for discriminating against their own female employees.

On Wednesday, the U.S. Justice Department filed a lawsuit against the largest bank in the nation, JPMorgan Chase & Co., alleging that from 2006 to 2009 it discriminated against African Americans and Latinos by charging them higher mortgage interest rates and fees when compared to “similarly situated white borrowers.”

According to Bloomberg, on average, black borrowers paid $1,126 more in fees while Latinos paid an average of $968 more in fees when compared to white customers.

JPMorgan spokesperson Elizabeth Seymour said, “We’ve agreed to settle these legacy allegations that relate to pricing set by independent brokers. We deny any wrongdoing and remain committed to providing equal access to credit.” They settled on the same day the lawsuit was filed.

The second lawsuit against the bank was filed by the Labor Department and claims that 93 female tech employees were paid lower wages than their non-female counterparts. JPMorgan Chase & Co. isn’t settling in this case and says that they’re looking forward to getting their evidence in front of “a neutral decision maker,” which is just another way of saying, “see you in court.”

Click here to find out more about the lawsuits filed against JPMorgan Chase & Co.


READ: This Bank Was Hoping Wronged Latino Immigrants Couldn’t And Wouldn’t Speak Up

Don’t forget to give that share button below a one-two punch before you go. 

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Latinos Are Running More Businesses Than Ever, But They’re Still More Likely to Be Denied Funding By Big Banks

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Latinos Are Running More Businesses Than Ever, But They’re Still More Likely to Be Denied Funding By Big Banks

Photo via Getty Images

The United States Latino population is steadily growing and with that, the demographics are shifting. More and more Latinos are becoming the first ones in their family to go to college, enter the white collar workforce, and increasingly, open up their own businesses.

And while all this change feels like progress, it also comes with its own set of hurdles.

A new study showed that Latino-owned business are significantly less likely to be approved for loans, despite surpassing the national revenue growth average.

Latino-owned businesses are skyrocketing, but banks still don’t want to finance them. “Latino [business] revenue growth should be a key metric in helping them gain capital, but they continue to fall short,” said Stanford research analyst Marlene Orozco to NBC.

The study, conducted by the Stanford Latino Entrepreneurship Initiative, found that 50% of white business-owners who applied for a loan of $100,000 over the last five years were approved. In contrast, only 20% of Latino business-owners were approved.

Unfortunately, this phenomenon extended to federal COVID-19 relief, like the Paycheck Protection Program (PPP). PPP was meant to help small businesses who were negatively impacted by the pandemic.

The thing is, the federal government ultimately relied on traditional, large banks to approve or deny applicants.

Latinos and Black people were denied COVID-19 Paycheck Protection Program loans at significantly higher rates than their white peers.

Even when successful entrepreneurs like Los Angeles-based restaurateur David Favela applied for a PPP loan, he was denied on the basis of not being “bankable”. Favela is the owner of three successful restaurants and breweries in California as well as being a 2020 James Beard Award finalist.

He was denied a PPP loan because he hadn’t funded his businesses with “traditional” capital (i.e. a loan from a big bank). When he started his business in 2013, he relied on his own savings as well as funds from family members.

But this type of financing is common among people of color. POC often rely on family members and/or crowdsourcing to kickstart their businesses. Unfortunately, big banks look down on that sort of non-traditional funding.

Traditional banks are more likely to approve applicants they have preexisting relationships with.

And people of color are less likely to have established relationships with large banks because, well, they don’t trust them. And arguably, for good reason. So, the plight of small business-owners of color becomes a vicious and endless cycle.

“Latinos are making strides in starting businesses and growing,” said Orozco. “Despite these trends, securing financing remains a challenge.”

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A Latina Firefighter in Boston Says the Department Retaliated Against Her When She Reported That She Was Sexually Assaulted by a Colleague

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A Latina Firefighter in Boston Says the Department Retaliated Against Her When She Reported That She Was Sexually Assaulted by a Colleague

Credit: Screenshot via CBS/WBZ

A former female firefighter was just given a settlement of $3.2 million by the city of Boston for what she characterized as a culture of sexual harassment, shaming, and silencing. Nathalie Fontanez says she was retaliated against by the Boston Fire Department for reporting a sexual assault she experienced at the hands of a colleague.

In 2018, Fontanez says she was sexually assaulted by fellow firefighter David Sanchez.

It all began when Fontanez joined the Boston Fire Department in 2011. The department was looking to hire fluent Spanish speakers, and Fontanez considered the opportunity a “golden ticket”. It was an opportunity for her, a single mom, to provide for her daughter without the assistance of welfare. And, she could prove to her daughter that women can do anything.

But Fontanez’s dream soon turned into a nightmare. After joining the department, she faced an inordinate amount of hazing and harassment because she was a woman and a Latina.

“I’m not a veteran. I’m not a man. I’m a Latin woman. If there was a totem pole, I was at the very bottom,” she explained. “I felt that I had to tolerate anything that came my way, because I was lucky to be there,” she said.

Per Fontanez, the incidents escalated until the day in question when she was assaulted at the firehouse by Sanchez.

After reporting the incident to her superiors, she says that her colleagues turned on her.

In a recent press conference, Fontanez explained the experience in more detail. “Incidents began to escalate and I was then shamed and labeled a trouble-maker,” she said. “The guys that I once relied on for my life’s safety now turned against me.”

While Sanchez was convicted of assault and battery and sentenced to two years of probation, Fontanez says that she was harassed and isolated by her station mates. According to her, the retaliation also included being denied a promotion and being ignored at social events.

“I was often reminded by some of my colleagues that I had taken a job from a man who could have been providing for his family, even though I was a single parent providing for mine,” she said.

Last month, the city settled with Fontanez for $3.2 million. But Fontanez says it’s not about the money–it’s about changing the toxic culture of firehouses. 

“I’m breaking my silence because I believe that women firefighters deserve equal treatment in the Boston Fire Department,” Fontanez said during the news conference. “However, at this point that is the dream, but not the reality, for many women firefighters. The department is overdue for change, and the time for change is now.”

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