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Ally to pay $98M to settle auto
lending discrimination case

Detroit News, by David Shepardson and Robert Snell

Original Article

Posted By:Ribicon, 12/20/2013 7:58:01 PM

Ally Financial Inc. agreed Friday to pay $98 million to settle claims that the Detroit-based lender discriminated against more than 235,000 minority auto buyers, marking the federal government’s largest auto loan discrimination settlement in history. In a 13-page complaint filed in U.S. District Court in Detroit, the Justice Department said since April 2011, about 100,000 African-American car buyers, 125,000 Hispanic borrowers and 10,000 Asian/Pacific Islander borrowers paid Ally higher interest rates than white borrowers “because of their race or national origin and not based on their credit worthiness or other objective criteria related to borrower risk.”

Comments:
No word on how this was proven, or if they just looked at skin color and decided it was racism in action, regardless of whether the loan was written by a minority group member.

Comic aspect, government is in effect shuffling money around in its pockets. Ally Financial used to be GMAC, before GWB and the Dems saved the world by bailing out the auto industry.

      


Post Reply  

Reply 1 - Posted by: Screwgun, 12/21/2013 9:56:01 AM     (No. 9662940)

This sounds like another Pigford. It´s all about redistribution.

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