Black People : Auto Finance Firms Discriminate?

Discussion in 'Black People Open Forum' started by Destee, Jun 24, 2005.

  1. Destee

    Destee destee.com STAFF

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    Lawsuits charge auto finance firms with discrimination


    A series of lawsuits seeking class-action status expect to be filed in federal court in Milwaukee Wednesday charging five major automobile financing companies with discriminating against African American customers in the Milwaukee area.

    The lawsuits, to be filed in U.S. District Court for the Eastern District of Wisconsin in Milwaukee, accuse the finance companies and dealers of "engaging in unlawful credit discrimination and unfair trade practices."

    The legal action was announced Wednesday by the two Milwaukee litigation firms that filed the lawsuits -- Habush, Habush & Rottier S.C. and Emile Banks & Associates L.L.C.

    The firms said thousands of minority consumers in Wisconsin could be affected.

    The five lawsuits name as defendants five auto financing companies: Ford Motor Credit Co., General Motors Acceptance Corp., Toyota Motor Credit Co., American Honda Finance Corp. and Nissan Motor Acceptance Corp.

    The lawsuits also name, but do not list as defendants, some of area's largest auto dealers, including Russ Darrow Honda Nissan Suzuki, 9301 W. Brown Deer Road, Milwaukee; Wilde Toyota Inc., 3225 S. 108th St., West Allis; Heiser Lincoln-Mercury, 7550 N 76th St., Milwaukee; and Heiser Chevrolet, 10200 W. Arthur Ave., Milwaukee.

    The firms said that the lawsuits may be expanded to include other finance companies and dealers in the future.

    The lawsuits allege that the finance companies "established and maintained a specific, identifiable and uniform finance charge markup system." Under the system, car dealers allegedly "add standardless, subjectively-determined finance charge markups" to minority customers' financing agreements, charging African American customers higher markups than "similarly-situated white customers, irrespective of credit-worthiness or other legitimate business reasons."


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    If this is true, i can't imagine that it's confined to Wisconsin.

    :heart:

    Destee
     
  2. Monetary

    Monetary going above and beyond PREMIUM MEMBER

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    It's basically true. Studies like these have been conducted for awhile now and reported in academic journals. If my memory serves me correctly, Jesse Jackson quoted a study that was done for automobile purchases. Similar studies have been done for housing as well.
     
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