Equal Credit Opportunity Act

Civil Rights, Consumer Advocates Call for End to Discriminatory Auto Loans

In recent months, this column has reported on a series of settlements reached between banks and finance companies with the Consumer Financial Protection Bureau and the Department of Justice. All of the actions were taken to resolve claims of discrimination in auto lending. To date, over $200 million in fines and restitution have been made to car buyers of color who paid higher interest rates than white borrowers – a violation of the Equal Credit Opportunity Act. Additionally and as a condition of the settlements, defendants were required to change their lending practices by significantly reducing the amount of additional