Autofinance Discrimination
The national Consumer Law Center has participated in extensive litigation against some of the largest finance companies in the world alleging that the impact of the loans was to discriminate against either African American or Hispanic consumers. The lawsuits, which exposed practices operated secretly for over 75 years and had resulted in higher-interest rate car loans for minorities, have transformed car financing practices across the industry.
Here is a list of all the suits in which they have participated.
Baltimore v. Toyota Motor Credit Corp
Smith v. Daimler Chrysler Financial
FMCC (Joyce Jones, et al. v. Ford Motor Credit Company)
GMAC (Coleman v. General Motors Acceptance Corporation)
NMAC (Cason v. Nissan Motors Acceptance Corporation)
AHFC (Terry Willis, et al v. American Honda Finance Corporation)
Borlay v. Primus Automotive Financial Services, Inc. and Ford Motor Credit Company
Bank Auto Finance Discrimination Cases
The problem occurred in the selling dealerships right to mark up interest rates which is primarily unregulated by the lenders or the Federal Government. Studies revealed that the dealership conduct in marking up the interest rates on car purchases and financing for Hispanics and African Americans. There was a study performed to prove this fact.
All the settlements, if any, were done without admissions of any wrong doing and the finance companies have ALWAYS denied any wrong doing.
