Local Homebuyers Alert: Attorney General Sues Realtor Over Predatory Practices and Discrimination

On May 14, 2024, Minnesota Attorney General Keith Ellison filed a lawsuit against realtor Chadwick Banken and his businesses in Hennepin County. The lawsuit accuses Banken of predatory lending, deceptive marketing, and discrimination against Muslim homebuyers. It claims that Banken's contracts for deed were designed to fail, trapping buyers with large initial and final payments they could not afford.

The lawsuit states that these contracts often led buyers to lose their investments, allowing Banken to profit by reselling the properties under similar terms. It also alleges that Banken did not provide the required disclosures on contract terms, misleading consumers about the loan conditions. Additionally, the lawsuit accuses Banken of offering worse terms to Muslim buyers, constituting religious discrimination.

Attorney General Ellison stated that buying a home is a major financial decision and criticized Banken for allegedly exploiting buyers and manipulating the system. Ellison expressed his commitment to protecting consumers and ensuring fair and informed housing decisions in Minnesota.

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