Ford’s Lending Methods Challenged in a Lawsuit
Ford Motor Credit, the division of Ford Motor business which makes car and truck loans, will be taken to court in a class-action suit contending that the business’s financing techniques enable dealers to discriminate against minorities.
In the 1st test over discriminatory methods in car financing, a federal judge in Nashville will start hearing an incident on Tuesday that accuses Ford dealers of discriminating against minorities by tacking on extra portion points that improve the general rate of interest to their loans.
The difference or split it with the lender in the practice, known as markups, dealers charge an interest rate higher than a lending institution would offer and either pocket.