Lawyers Suing Ford Credit Claim Hispanics Charged Higher Rates
NEW YORK, June 20 (LendingIntelligence.com) — Attorneys suing Ford Motor Credit issued a report today accusing the lending unit of Ford Motor Co., of charging Hispanic buyers higher interest rates than non-Hispanics — a report that was immediately blasted by a Ford Credit spokesman.
That’s according to a story issued today by Knight Ridder’s Washington Bureau.
The lawyers suing Dearborn, Mich.-based Ford Credit paid a researcher to examine more than six million car loans made by the lender between 1997 and 2001, which they claim showed that Hispanic buyers — regardless of their credit history — paid significantly higher interest rates than non-Hispanics. The difference averaged approximately $266 more per loan, according to the report.
Dan Jarvis, a spokesman for Ford Credit, denied the allegations, claiming the study was seriously flawed and subjective, and added that the company will issue a response next week.
The suit brought against Ford alleges the company fraudulently conceals markup costs from buyers and "directs the dealerships to maintain this practice in secret." It also claims Ford failed to monitor or remedy the alleged discriminatory effects of the markup policy and failed to adequately train dealers about complying with federal fair lending laws.