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]
