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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.

by Staff
March 16, 2005
2 min to read


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.

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"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.

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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.

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