- Associated Press - Tuesday, February 2, 2016

DETROIT (AP) - Toyota Motor Credit Corp. will pay $21.9 million to black and Asian borrowers as part of a settlement over alleged discriminatory lending.

The U.S. Department of Justice and the Consumer Financial Protection Bureau announced the settlement Tuesday.

A government investigation found that dealers were marking up interest rates on loans to minority buyers between 2011 and 2016. Under the settlement, Toyota will cap the amount dealers can mark up a loan.

Toyota Motor Credit is the nation’s largest captive auto lender. The company denies wrongdoing and said it didn’t know the race of credit applicants, but agreed to the settlement because it was fair to customers and dealers.

Toyota is the latest auto lender to settle a discrimination case. Ally Financial and Honda’s U.S. finance arm have reached similar settlements.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide