DETROIT -- General Motors Acceptance Corp. has agreed to settle a six-year-old class-action lawsuit that alleged the company routinely charged higher interest rates to black and Latino customers financing car purchases.
In the settlement, GMAC agreed to impose a 2.5% markup cap on loans with terms up to 60 months, and a 2% cap on extended-term loans. GMAC also agreed to create a credit program designed to provide minority car buyers with special rate financing. This credit program will be similar to one planned by Nissan Motor Acceptance Corp., which last year settled a similar case brought by the same group of attorneys.
National Consumer Law Center in Boston and several law firms filed the suit against GMAC on behalf of minority auto finance customers.
The settlement included no admission of any wrongdoing on GMAC's part.