Screen Shot 2015-07-15 at 11.05.14 AMHonda’s auto loan practices came under scrutiny a couple of years ago and now the company is shelling out millions towards a race discrimination lawsuit.

Honda is now paying $24,000,000 because it knowingly charged Black and Hispanic loan customers higher interest rates on loans. According to an investigation, Black and Hispanic customers routinely paid $250 or more for their loans than white customers, even if they had better credit.

From the BBC:

The US Consumer Financial Protection Bureau and Department of Justice said that American Honda Finance Corp, the company’s loans arm, would change its pricing and compensation system to reduce the potential for discrimination.
Despite the settlement, Honda said that it disagreed with how the two regulators determined discrimination, but “we nonetheless share a fundamental agreement in the importance of fair lending”.

American Honda Finance Corporation (AHFC) does not make loans directly to consumers, but receives loan applications through car dealers. Those dealers have the discretion to vary a loan’s interest rate after an initial price Honda sets based on creditworthiness.

The $24m that Honda will pay will go in to a fund to compensate affected borrowers.

“Discrimination of any kind is intolerable,” said Eileen Decker, the U.S. Attorney for the Central District of California, where the Honda lending unit is based. “Other auto companies should follow Honda’s lead in taking steps to ensure that their sale and financing practices do not result in discrimination.”

Tags: ,
Like Us On Facebook Follow Us On Twitter
  • John James

    So they charge the people that make less $ higher interest, even if they had a better credit score? That makes no sense at all.

    • Rizzo

      I guess charging the people that make less money higher interest rates offsets the lower interest rates they offer to those they deem worthy. they can even make a profit off the higher interest rates charged.

  • Honda did execute a deplorable policy as discrimination has no place in our society. Predatory loans are problems too. The government used their actions to document this discriminatory policy made by Honda. Now, Honda must pay the price for their egregious actions. We want equality, fairness, and justice as black people.

  • mmmdot

    “Modern racism researchers have suggest that certain white racial views being found are relatively new, yet even they note numerous continuties today with the past racist framing of society used by whites. Among the continuing elements is what they term the “anti black affect,” which involves white fear, avoidance and distaste for Black Americans. However, both the anti black affect
    and these stereotypes have been part of the racist framing of Black Americans
    since at least the 18th century.” – ‘Two-Faced Racism: Whites in the Backstage and Frontstage’ by Leslie Houts Picca, Joe R. Feagin.

    Whites are STILL using PRIMITIVE 18TH CENTURY MODELS OF AFRICAN women, men, and children to “scientifically” and “objectively” judge people of African descent TODAY. They STILL believe outward physical appearances are signs of profound, inner differences. We live in a CASTE system, not a CLASS system.

    • Chazz A

      Excellent points. I read “‘Two-Faced Racism” a few yrs ago and I refer back to it often when I discuss racism. Caucasians have been groomed and culturally conditioned to believe the false ideology of entitlement and supremacy for centuries. To literally hate another human being based on skin tone is a primitive and naive act that derives from fear.
      IMO, every Caucasian in this country benefits directly and indirectly from the system of white supremacy, regardless of social status. The “backwards racist beliefs” you stated are as prevalent in 2015 as they were in 1815. It is a generational brainwashing.

  • mmmdot

    “Much of the best overt expression of blatantly racist thought, emotions, interpretations, and inclinations has gone backstage – that is, into private settings where whites find themselves among other whites, especially friends and relatives…we mostly examine the significantly divergent racial performances by white Americans in public (multiracial) and private (all-white) areas.” – ‘Two-Faced Racism: Whites in the Backstage and Frontstage’ by Leslie Houts Picca, Joe R. Feagin.

    Most whites are violent, phony, ghoulish sociopaths. Period.

  • EbonyLolita

    As I have to make a payment to Acura which is under Honda Financing. How do I get my MONEEEEEEEE??!!!