Judge Finds Ford's Lending Practices Discriminatory
NASHVILLE, Tenn. -- A federal judge ruled that Primus Automotive Financial Services did discriminate against black customers by charging them higher rates on car loans after a two-week trial.
NASHVILLE, Tenn. -- A federal judge ruled that Primus Automotive Financial Services did discriminate against black customers by charging them higher rates on car loans after a two-week trial.
The unit of Ford Motor Credit Corp. was given 30 days to draft a proposal on how to end the discrimination and the judge said both sides can still agree to settle the case, reported The Associated Press.
"What I have decided is that the plaintiffs have proved their case and that they will win in my decision," said U.S. District Court Judge Aleta Trauger. By agreeing to negotiate, she said the defendants would not give up their right to appeal a final decision.
"I am of the opinion that courts ought not to overly intrude and tinker in all the details of something like this. I would much prefer that I get a proposal from the parties here," Trauger said. "However, if I am put to it, I will decide how I will structure the remedy in this case."
The lawsuit lists 11 named plaintiffs, but attorneys said thousands of black customers were discriminated against and are included in the class. The plaintiffs were not seeking damages in the case.
Primus spokeswoman Meredith Libbey said in a statement that the company disagrees with the judge's conclusions.
"We uphold the highest standards of fair lending. We do not believe the record in the case supports any finding of discrimination," Libbey wrote.
Lead plaintiff lawyer Clint Watkins said he was pleased with Trauger's comments. "We look forward to working with Ford Motor Credit on a solution," he told the AP.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
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 →