Honda has reached a settlement to resolve allegations that the company discriminated against minority car buyers by marking up interest rates on loans, a practice industry experts describe as common because of the discretion given to individual dealerships.
Honda’s settlement yesterday with the U.S. Department of Justice, subject to court approval, was filed in federal court in Los Angeles. Honda `s U.S. operation is based in nearby Torrance, California.
The Justice Department and the Consumer Financial Protection Bureau accused Honda dealers of charging higher interest rates to thousands of black, Hispanic, Asian and Pacific Islander customers than white car buyers. Those minority customers paid an average of between $150 and $250 more during the terms of their loans, according to the government.
Honda said in a statement that it “strongly opposes any form of discrimination, and we expect our dealers to uphold this principle, as well.”
