The Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) announced a $98 million settlement with Detroit-based Ally Financial Inc. to settle claims of discriminatory lending from the bank’s indirect auto lending program.
The settlement provides $80 million in compensation for consumers and requires Ally to pay $18 million to the CFPB’s Civil Penalty Fund.
The agencies claim that Ally’s indirect financing program, involving more 12,000 car dealerships around the country, charged approximately 235,000 African-American, Hispanic and Asian/Pacific Islander borrowers higher interest rates than non-Hispanic white borrowers.
The bank did not admit or deny the charges, but agreed ...
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