Eliminating interest rate markups of vehicles loans is the only way to guarantee no bias occurs in sales, said U.S. District Judge Aleta Trauger of Nashville, Tenn. According to Automotive News, she has hinted that she may outlaw the markups if mediation fails to resolve a racial discrimination case.
In March, the defendant, Primus Financial Services Inc., and the plaintiffs were urged to work out a compromise. Trauger ruled that the practice of marking up interest rates does lead to higher finance charges for minority buyers but refrained from ordering a ruling.
