This past Tuesday (Feb. 16th) the Consumer Financial Protection Bureau in alliance with the Justice Department reached a settlement against Toyota in a discrimination case. The major car corporation was accused of being bias towards Black and Asian borrowers by charging them with high interest rates. Well that ignorance is costing Toyota, where they are ordered to pay $22 million dollars in compensation to those Black and Asian borrowers, who paid more for their auto loans than White borrowers.
In 2013 the Departement of Justice and Consumer Financial Protection Bureau led a federal probe into Toyota's auto lending practices and their dealerships. Upon the investigation, it was discovered that Blacks paid 0.27% and Asians paid 0.18& of interest rates more than White borrowers who also had similar auto loans.
Following the settlement, Toyota Motor Credit Corp. issued a statement of their no tolerance for discrimination and willingness to compensate the people who was affected by it.
"TMCC does not tolerate discrimination of any kind, even perceived or unintentional, from its employees or business partners — this principle extends to fair lending practices."
Their statement continued with TMCC promising to be equally fair with their auto loans.
"While TMCC respectfully disagrees with the agencies’ methodologies to determine whether industry lending practices have been discriminatory, the company shares the agencies’ commitment to ensuring that consumers can count on competitive and fair auto financing options."
Consumers and buyers are protected under the Equal Credit Opportunity Act which prohibits discrimination in all aspects of lending, including auto loans.