Tuesday, July 14, 2015
Honda To Pay 24 Million To Blacks Asians and Latinos For Discriminatory Loan Practices
The U.S.Government has charged the U.S.' ninth auto loan provider American Honda Finance Corporation with discriminating against minorities.
An investigation that began in 2013 by the Federal Government found in cases of minorities creditworthiness took a back seat to ethnicity when it came to auto loan approvals and rates. The report says the AHFC made Blacks, Latinos, and Asians pay $150 to $250 more on average more than White borrowers.
Honda played party to the discrimination when they allowed dealers to mark up the rates.
On Tuesday July 14th, the automaker agreed to pay 24 million dollars to Blacks Hispanics and Asians that were overcharged because of their ethnicity. Honda also agreed to cap the amount dealers can mark up interest rates on auto loans.
But wait! Honda discriminating against Asians? Aren't they a Japanese company? They sure are. This just goes to show you there is a crude irony cloaking racism in America - it doesn't discriminate against anyone that is not white.
American Honda Finance Corporation (AHFC) issued this statement on Tuesday July 14th,
"AHFC strongly opposes any form of discrimination, and we expect our dealers to uphold this principle as well. We firmly believe that our lending practices have been fair and transparent".
Honda also went on record as not agreeing with the Government's accusations.
Honda says they have a "difference of opinion" with the government about this method. "But we nonetheless share a fundamental agreement in the importance of fair lending."