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Judge in Loan Discrimination Case Orders Mediation

May 5, 2005

U.S. District Court Judge Aleta Trauger ordered both sides of an auto loan discrimination case to enter into mediation after they failed to agree on a settlement in March, according to the Associated Press.

Lawyers for the plaintiffs and defendant, Primus Automotive Financial Services, a part of Ford Motor Credit Corp., must agree on a mediator by May 27. Plaintiff lawyer John Barney told the Associated Press that both sides will submit a tentative mediation schedule when they announce their chosen mediator.

The lawsuit, filed in 2002, alleged Primus discriminated against its black customers, charging them higher interest rates on loans. The plaintiffs in this case wished only to have the practice stopped and sought no damages.

Judge Trauger ruled in March that the plaintiffs proved Primus was at fault and gave both parties 30 days to devise a plan to end the practice and settle the case.

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