Minority Car Loans Under Scrutiny
Recently the Justice Department’s division for civil rights has been looking into whether car dealerships are giving minorities loans with the steepest interest rates. This is a process known as “reverse redlining”.
Specifically they are investigating into whether “dealer markups”, which is additional interest that dealers can add to a loan, have been used in minority car loans.
This latest push towards investigating car dealers comes after the Justice Department couldn’t crack down on this reverse redlining practice elsewhere. They have no focused their attention to car dealerships because they are some of the least regulated players in the auto industry.
Prosecutors from the Justice Department are really struggling with trying to uproot this issue because they state that the car dealers have the least amount of accountability, however they wield a large amount of power in a segment of the industry that is largely undocumented.
Not only is the Justice Department cracking down on reverse redlining but they also have been keeping their eyes open to other discriminatory practices.
They recently investigated a car dealership in North Carolina who had been accused of charging African American patrons with the highest, state-allowed interest rates on used vehicles. The dealership ended up denying any wrong doings but agreed to cap their interest rates for all clients.
We at Fast Free Auto Loan are happy the Justice Department is currently investigating this issue for minority car loans. If you are currently interested in a car loan please don’t hesitate to apply using our fast, hassle-free and secure application!