Charges that Erie Insurance Group and five affiliated agencies violated federal law by selling homeowners insurance in African-American neighborhoods that was inferior to its products in white areas are “misguided,” the company said today.

The U.S. Department of Housing and Urban Development announced yesterday it was taking administrative action seeking fines and penalties against the Erie, Pa.,-based company for violating the Fair Housing Act after an investigation that began with a complaint about company activity in Syracuse, N.Y.

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