Jul 14, 2015 3:41 PM by News Staff
LOS ANGELES (AP) - Honda has reached a settlement to resolve allegations that the company discriminated against minority car buyers by marking up interest rates on loans.
Honda's settlement with the U.S. Department of Justice, which is subject to court approval, was filed Tuesday in federal court in Los Angeles. Honda is based in nearby Torrance, California.
The Justice Department and the Consumer Financial Protection Bureau said that Honda dealers charged higher interest rates to thousands of black, Hispanic, Asian and Pacific Islander customers than white car buyers.
Honda says in a statement that it "strongly opposes any form of discrimination" and firmly believes its lending practices have been fair.
Under the settlement, Honda is agreeing to pay $24 million to past victims of discriminatory lending and cap the interest rates dealers can charge.
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