Wells Fargo Faces Discrimination Suit Over Commercial Loans

""Wells Fargo"":http://www.businesswire.com/news/home/20120817005763/en/Medical-International-Files-Discrimination-Suit-Wells-Fargo faces litigation from Best Medical, Inc., part of Virginia-based TeamBest, which creates and distributes medical products and technology. The litigation, which originated in spring 2010, was elevated to the U.S. Federal Court in Alexandria, Virginia about two weeks ago.

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Best Medical alleges Wells Fargo discriminated against the company when calling commercial mortgage loans. The bank ""charged additional fees, significantly increased the interest rate and demanded the immediate

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payment of the loan with a prepayment penalty and legal fees amounting to nearly 1 million dollars,"" according to a ""statement"":http://www.businesswire.com/news/home/20120817005763/en/Medical-International-Files-Discrimination-Suit-Wells-Fargo from Best Medical Friday.

Best Medical claims its commercial mortgage loans were fully performing, and the company submitted an additional $2 million payment upfront ""as a sign of goodwill,"" James Brady, in-house council for Best Medical told _MReport_ Monday.

The company further alleges that Wells Fargo ""has been harassing TeamBest customers"" and ""continues to confiscate additional assets and funds,"" which is ultimately ""preventing TeamBest from conducting its business.""

According to Best Medical, ""Wells Fargo is now holding nearly a few hundred million USD as collateral for a 10 million USD loan.""

Brady said ""there is more than enough in real estate to cover the loans,"" but Wells Fargo is also holding the company's personal property and accounts receivable as collateral as well.

Fairfax County Circuit Court in Virginia dismissed fraud claims TeamBest brought against Wells Fargo regarding interest rate SWAP agreements.

At the time of publication, Wells Fargo did not respond to inquiries regarding the litigation.