Fifth Third Bank is far from the only financial institution investigated for racial discrimination related to auto loans. Ally Bank, American Honda Financial and Evergreen Bank have also violated the Equal Credit Protection Act. Racial discrimination in this lending sector now amounts to roughly $194 million. And given that race-based income inequality remains a pressing problem both in and out of the U.S., it’s particularly appalling that financial institutions choose to profit off of Blacks and Latinos, groups still recovering from the 2007 economic recession.
“Even when African-American and Latino borrowers negotiate the interest rate, they end up paying more for their cars than white borrowers with similar credit profiles because of the car dealer interest rate markup,” said Chris Kukla, senior vice president of the Center for Responsible Lending. “Discrimination has no place in the auto lending market, and our research shows that dealer markups contribute to this discriminatory outcome. … The best way to root out discrimination in auto lending would be to eliminate dealer markups altogether.”
http://www.cleveland.com/business/in...riminated.html



Reply With Quote


Bookmarks