Ford Motor Credit Sued for Alleged Financing Discrimination
A group of African Americans filed suit Nov. 2 against Ford Motor Credit Company, alleging the company discriminates against blacks by charging them higher interest rates.
The suit, which seeks class action status, is seeking unspecified restitution and an injunction forcing Ford Credit to change its alleged policy.
The plaintiffs want the suit to represent all African Americans who obtained financing from Ford Motor Credit beginning oin Jan. 1, 1990. The case was filed in Manhattan federal court.
The plaintiffs are alleging unchecked, subjective markup hikes arranged by dealers. These markups are added to the risk-based rates computed by Ford Motor Credit, the suit claims. The suit alleges that Ford Motor Credit and the dealers share in the additional profit resulting from the markups.
"We absolutely do not discriminate in any way," Dan Jarvis, a Ford Motor Credit spokesman, told Reuters. Jarvis said the rates charged by Ford Credit are based on the level of risk and credit scores, and that Ford Credit does not know an applicant's race.
The suit follows in the wake of, and according to some industry analysts could be inspired by, similar pending suits against General Motors Acceptance Corporation (GMAC) and Nissan Motor Acceptance Corporation (NMAC).
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