La Sues Bank Of America, Affirms Prejudicial Contract Loaning

(Reuters) - The city of Los Angeles has indexed a claim against Bank of America (Bac) in U.s. elected court in California, blaming it for biased contract loaning in the city's minority groups.

The claim, indexed by City Lawyer Michael Feuer, blamed the bank for participating in a "consistent design and practice of contract separation" following no less than 2004, consistent with a court documenting.

A representative for Bank of America couldn't promptly be arrived at for remark.

The protestation asserted that the bank's practices expedited a wave of abandonments in minority neighborhoods that proceeded to mischief the city's property charge incomes and expanded the need for city administrations.

It looks for harms initiated by the bank's asserted prejudicial works on, incorporating lost income.

Real banks are battling numerous lawful fights identified with their contract giving practices. On Monday, Bank of America said it might pay $404 million to Freddie Mac to determination liabilities on home advances sold to the legislature regulated contract organization.

Friday's grievance blamed the bank for declining to enlarge contract credit to minority borrowers on equivalent terms as offered to different borrowers or broadening credit on savage terms. It said the practices set defenseless borrowers in advances they couldn't bear, incorporating subprime credits.

Comparative claims were documented on Thursday against Citigroup Inc (Nys:c) and Wells Fargo (Wfc). Representatives for both banks told Reuters the suits were without legitimacy.

The case is City of Los Angeles v Bank of America Corp et al, U.s. Locale Court, Focal Region of California.

(Reporting by Dena Aubin in New York; Editing by Peter Cooney)