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In response to Wells Fargo &
Company’s continued financing of payday lenders that use predatory lending
practices to prey on elderly, minority and low-to-moderate income consumers, CRA-NC
has introduced a Shareholder Proposal to be voted on at Wells Fargo’s annual
meeting of stockholders, to be held on April 26, 2005 in San Francisco.
CRA-NC
Proposal - Item 4 - Take steps to prevent predatory lending
IRRC
Social Issues Service Background Report on CRA-NC Proposal
Wells
Fargo 2005 Proxy - Item 4 (direct link to pdf)
The California Reinvestment Coalition
(CRC) has joined CRA-NC in its
support for this proposal. North Carolina State Treasurer Richard Moore
has announced his support of the plan and directed investment managers for the
state's pension plans to vote in favor of the proposal. North Carolina's
pension plan holds 2.5 million shares of Wells Fargo with a market value of $152
million.
Treasurer
Moore Directs Managers to Vote Yes on Wells Fargo Payday Lending Resolution
(Press Release 4/18/05)
NC
Treasurer Moore's Letter To Managers, 4/18/05
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Predatory lending is contrary to the spirit and provisions of the
Community Reinvestment Act, which obligates Wells Fargo to affirmatively meet
the credit needs of the communities it serves.
Financing payday lenders leaves the bank open to reputational risks from
its involvement in practices that are increasingly under fire from state and
federal regulators. The company is
already dealing with accusations from community groups that it lags other
major industry players in developing policies to protect borrowers and
shareholders from predatory lending complaints.
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