The Consumer Financial Protection Bureau recently gave out a warning to auto lenders about illegal discrimination, due to the fact that black and Hispanic borrowers were illegally being charged more than whites for auto loans. While dealers are allowed to mark up rates by as much as 3%, the Equal Credit Opportunity Act does not allow factors such as race or sex to sway decisions regarding loans. The agency has recommended instituting a flat rate markup to avoid discrimination.
Read the full article here:
http://bucks.blogs.nytimes.com/2013/03/21/consumer-agency-warns-lenders-on-bias-in-auto-loans/
