Study Supports Race-Bias Suit Against Honda
By Caroline E. Mayer
Washington Post Staff Writer
Wednesday, July 28, 2004; Page E01
Black customers are much more likely than white buyers to be charged markups on loans financed by American Honda Finance Corp., according to a study done for minority borrowers who have sued the auto lender.
The lawsuit, one of several class actions filed against major auto financiers in recent years, alleges that Honda discriminated against black car buyers by charging them higher interest rates when they financed their cars at dealerships through the lending arm. The study by Vanderbilt University business professor Mark A. Cohen found that 43.3 percent of Honda's African American borrowers were charged a markup, compared with 22.2 percent of white borrowers.
Of those charged a markup, blacks paid an average $557, compared with $227 for whites. The study found that the disparities occurred even when borrowers of different races had the same creditworthiness.
Trackback URL for this post:
http://www.prometheus6.org/trackback/5689
