Screen Shot 2016-02-10 at 10.06.00 AMThe Justice Department and the Consumer Financial Protection Bureau on Tuesday announced a settlement resolving allegations that Torrance-based Toyota Motor Credit Corp. discriminated against black and Asian/Pacific Islander borrowers in auto lending.

Toyota has agreed that it will not increase rates it quotes to car dealers as well as limiting the discretion of its dealers to charge interest rate markups.

The $20 million settlement will provide compensation to those who took out loans from Jan. 2011 up until last month. In addition, the company will also pay $2 million to black and asian borrowers with markup disparities.

“TMCC does not tolerate discrimination of any kind, even perceived or unintentional, from its employees or business partners — this principle extends to fair lending practices,” according to the company.

“While TMCC respectfully disagrees with the agencies’ methodologies to determine whether industry lending practices have been discriminatory, the company shares the agencies’ commitment to ensuring that consumers can count on competitive and fair auto financing options,” the statement continued. “The actions TMCC will take under this agreement are intended to further that commitment.”

The Equal Credit Opportunity Act prohibits such discrimination in all forms of lending, including auto lending.

Tags: , , , , ,
Like Us On Facebook Follow Us On Twitter
  • Adebisi’s Hat

    Post-racial America, y’all! Where you can charge Black and Brown people more than white folks and call it “the cost of doing business”. One more company I never had any intention of supporting bites the dust, I guess. Kanye shrug.

  • [email protected]

    Discriminatory practices (against black people & people of color) are debased and seriously immoral. There is a settlement and predatory lending in general contributed so much to the problems that we face today. Toyota was made to pay compensation and this is why we should always enact forthright vigilance against oppression. Also, we desire structural, revolutionary changes in our world. We believe in fighting poverty, racism, xenophobia, and corrupt economic practices. We fight for justice, because it is in our blood to fight and it is the right thing to do.