Essex Tech Schools Join Wells Fargo Boycott, Withdraw $16M

ESSEX COUNTY, NJ — Wells Fargo took another multi-million dollar hit in North Jersey this week when administrators with the Essex County Schools of Technology District joined Essex County officials in a financial boycott of the banking giant.

On Wednesday, officials announced that the school district board unanimously voted to withdraw $16 million of its funds from the embattled bank. The district is currently soliciting proposals from other institutions to replace Wells Fargo.

The boycott is being made in protest of alleged “predatory lending and aggressive foreclosure practices by Wells Fargo,” county and school officials said.

Patch reached out to Wells Fargo seeking comment about the district’s decision and received the following reply from a spokesperson:

“We were disappointed to learn about this decision from the press. We continue to support Essex County and its residents through a multitude of business and philanthropic endeavors and hope to resume our relationship with the district in the future. In the interim, we will work to ensure a smooth transition.”

The district’s actions come on the heels of a similar decision by Essex County, which announced earlier this month that it’s pulling $3.8 million of its funds from the beleaguered bank.

• See related article: Essex County Kicks Wells Fargo To Curb, Withdraws $3.8M

Schools of Technology Superintendent James Pedersen said that it was “very easy” to support the county’s decision to yank its funds from Wells Fargo.

“While [Essex County Executive Joseph DiVincenzo Jr.] is speaking for Essex County residents, the school district is speaking for our students who see and understand how this affects their neighborhoods,” Pedersen said.

“There are other more reputable banking institutions we can do business with that can provide us with first-class service and more peace of mind,” Pedersen added.

DiVincenzo thanked the school district board for standing in solidarity with the county.

“I am pleased that the school district is supporting our actions against Wells Fargo and taking steps to withdraw its funds from the bank,” he said. “Our message becomes that much stronger when we stand together… we are sending a clear message that we only want to do business with banks that demonstrate they are good neighbors and are willing to work with us to strengthen our community.”

Essex County Freeholder President Brendan Gill also took a shot at Wells Fargo on Wednesday:

“The Board of Freeholders will continue to work with the local clergy and other community leadership groups to bring light to, and stop, the unethical and immoral practices of predatory lending institutions such as Wells Fargo.”

According to its website, the Essex County Schools of Technology District operates four high schools: Newark Tech, Bloomfield Tech, North 13th St. Tech and West Caldwell Tech. The district provides a college-preparatory academic program culminating in Advanced Placement coursework in addition to its Career and Technical Education focus to approximately 2,200 students.

More than 85% of the student population is eligible for free or reduced lunch and over 90% are from school districts formerly known as Abbot Districts.

• See related article: Essex County's Top-Ranked High Schools For 2018: US News

WELLS FARGO AND ESSEX COUNTY

A consortium of local activist groups and labor unions have been blasting Wells Fargo for its alleged negative impacts on the Essex County community for years.

Earlier this summer, several members of Newark's African-American clergy community raised concerns about foreclosures in Essex County, where about 3,000 foreclosure notices were executed in 2017, TAP Into Newark reported.

In April 2017, East Orange officials announced that the municipality was yanking its funds from Wells Fargo, reportedly making it the first New Jersey city to take such an action against the bank.

"In East Orange, Wells Fargo remains one of the top foreclosing banks, holding nearly 13 percent of the city's vacant and abandoned properties," East Orange Mayor Lester Taylor III said. "As mayor of the second-largest city in Essex County and the 20th-largest in New Jersey, I am committed to sending a strong message that we will not do business nor consider doing business with any institution that intentionally preys upon homeowners in our city."

"Business as usual is no longer acceptable," East Orange Councilman Ted Green asserted. "For many years, the residents of East Orange have been subjected to predatory lending and aggressive foreclosure practices by Wells Fargo. The consequences of stolen wealth have been devastating to families of East Orange."

A Wells Fargo spokesperson previously provided Patch with the following statement about East Orange’s decision:

"While we have not had a business relationship with the City of East Orange in recent years, Wells Fargo has always been a leader in investing in New Jersey's low-to-moderate income communities. For the past six years Wells Fargo has been the nation's leading residential mortgage lender to racially and ethnically diverse home buyers and we are dedicated to expanding sustainable home ownership in these communities. We have recently announced a $60 billion lending commitment to raise home ownership rates among demographics that are below the general population, and have contributed over $7 million to schools and nonprofit organizations across New Jersey."

• See related article: New Jersey Town Takes On Wells Fargo Bank

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