American Honda Finance found guilty of illegal discrimination

Article by Christian A., on December 6, 2014

The Consumer Financial Protection Bureau and United States Department of Justice have found American Honda Finance Corp. (AHFC) responsible for illegal discrimination in pricing auto loans, the company said in filing with the US Securities and Exchange Commission.

The company also disclosed in the filing that it may face sanctions until it settles with the federal agencies. American Honda Finance Corp. is similar to a move by Toyota Motor Credit Corp. on Nov. 28. Both captive finance companies said in 2013 that the federal agencies had asked information regarding auto loans.

AHFC said that it a notice that the Agencies have authorized enforcement actions against the captive finance unit, alleging discrimination in auto loan pricing to certain borrowers by dealers and alleging the loan pricing disparities were caused by the company’s business practices related to dealers.

AFHC said the agencies may not pursue the case if it works with them to seek a “voluntary resolution.” According to AHFC, the federal agencies want monetary relief for customers as well as changes in its pricing policies.

In 2013, the Consumer Financial Protection Bureau disclosed that auto lenders were to be blamed for higher rates for dealer reserve for legally protected classes of borrowers like minorities and women. The bureau said auto lenders made those higher rates possible by allowing dealerships to impose customers with similar credit histories different rates.

Topics: honda

If you liked the article, share on:

Comments

Recommended

BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries