DaimlerChrysler Credit Arm Settles Suits Alleging Discrimination
DaimlerChrysler AG is settling two lawsuits in Texas that accuse the company and its finance arm of discriminating against Hispanic and black loan applicants.
DaimlerChrysler AG is settling two lawsuits in Texas that accuse the company and its finance arm of discriminating against Hispanic and black loan applicants.
The lawsuits, filed in 2003, accused DaimlerChrysler Services of tampering with a computer program that was supposed to automatically and objectively evaluate car loan applications, reported the Detroit Free Press. Rick Perez, a Hispanic dealer, accused the company of making it harder for customers to get loans at his dealership in Galveston, Texas.
The finance company denied the charges, saying its lending policies are fair and that it doesn´t tolerate discrimination.
"What we are faced with is a dealership which was unsuccessful in its business and financial management," said the company in a statement earlier this year. "He filed for Chapter 11, sold his store and the moment it was sold, tries to manipulate the court with a frivolous lawsuit, which makes unsubstantiated claims of discrimination designed for his own financial gain."
The terms of the deal were not disclosed due to confidentiality obligations to the plaintiffs, according to James Ryan, DaimlerChrysler Services spokesperson.
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