Honda Finance Unit Must Pay $24 Million For Charging Higher Interest To Non-White Borrowers

Honda Finance Unit Must Pay $24 Million For Charging Higher Interest To Non-White Borrowers

Under the Equal Credit Opportunity Act, creditors are prohibited from discriminating against loan applicants based on race or national origin. But that was a rule Honda’s financing unit allegedly violated, resulting in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans. Now, as part of a settlement with federal regulators to resolve allegations that the company allowed discriminatory loan pricing, the company must provide $24 million in restitution to borrowers. [More]

Ally Bank To Pay $98 Million For Charging Higher Interest To Non-White Borrowers

Ally Bank To Pay $98 Million For Charging Higher Interest To Non-White Borrowers

Earlier today, the Justice Dept. and the Consumer Financial Protection Bureau announced the largest auto loan discrimination settlement in U.S. history with the news that Ally Bank has agreed to pay $98 million, including $80 million in refunds to settle allegations that it has been charging higher interest rates to minority borrowers of car loans. [More]