Ford Motor Credit Bias Trial Begins
A class-action lawsuit accusing Ford Motor Credit of racial bias in auto lending will be the first of its kind to go to trial. The decision could effect how consumers finance their vehicle purchases and pose a threat to one source of profit for dealers.
A class-action lawsuit accusing Ford Motor Credit of racial bias in auto lending will be the first of its kind to go to trial. The decision could effect how consumers finance their vehicle purchases and pose a threat to one source of profit for dealers.
The case involves Primus Automotive Financial Services Inc., a branch of Ford Credit that does business as Mazda American Credit, Land Rover Capital and Jaguar Credit, which is accused of charging African-Americans more for auto loans than whites, even when their credit scores are the same, reported The Detroit News.
The lawsuit attacks Primus for permitting car dealers to mark up interest rates on auto loans for extra profits. Ford Credit spokeswoman Meredith Libbey told the paper that the charges could not be true because Ford has a computerized process for approving loans, which makes it a colorblind process as well.
The same argument has been used by other auto finance companies, including General Motors Acceptance Corp. and Nissan Motor Acceptance Corp., with both settling out of court last year.
Last summer, Ford said it would cap loan markups to prevent abuses. Today, Ford limits loan mark ups to 2.5 points more than the interest rate a customer's credit score recommends. On loans with terms longer than 60 months, the cap is 2 points.
During the past year, Ford has also added language to lending contracts explaining that interest rates are negotiable and that dealers may retain a portion of financing charges as profit.
More F&I

Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
F&I Training Fundamentals
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
Not Just Any Tire Will Do
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →