FI showroom red and grey logo
MenuMENU
SearchSEARCH

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.

by Staff
March 1, 2005
2 min to read


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.

Ad Loading...


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.

Topics:F&I

More F&I

Headshot mockup thumbnail.
F&I•October 1, 2026

Modern Technology Objection Handling

In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.

Read More →
man standing in front of podium
F&I•by Lauren Lawrence•October 1, 2026

Consistency at Scale: Driving F&I Performance

With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.

Read More →
Insurance contract signature page with black inkpen on top
F&I•by Hannah Mitchell•September 22, 2026

Gitty Up on GAP

The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?

Read More →
Ad Loading...
Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Sponsored•September 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&I•September 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
2026 StoneEagle summary
F&I•by Hannah Mitchell•August 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
Ad Loading...
man with white hair and glasses delivering a speech standing next to a podium
F&I•by Lauren Lawrence•August 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&I•by Justin B. Gasman•August 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Laptop computer, tablet, calculator and notebook on a desk
F&I•by John Tabar•August 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Finance•by Lauren Lawrence•August 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →