General Motors Acceptance Corporation, the nation’s second-largest auto lender, said that it has reached a tentative agreement to settle a class-action lawsuit that claims the company discriminates against blacks by charging them higher interest rates for car loans.
A final settlement could be reached as early as next week.
Under the proposed agreement, GMAC would disclose more information to consumers regarding their interest rates and limit how much extra interest a car dealer can charge on loans, reports Bloomberg News. Some dealers pay their employees commissions for selling car buyers on higher interest rates.
“If GMAC puts caps on markups and the banks allow more, where do you think the dealers will go?” said Spinella, president of Bandon, Ore.-based CNW Marketing Research. “Conceivably GM could be facing tens of millions of dollars of lost profit. It would not surprise me to see GM’s share of finance drop eight to 10 or 12 points.”.
(via Bloomberg News)
4 responses so far ↓
johnny and shirley lee // May 25, 2004 at 1:29 pm
we have bought six or more vechicles from gm and felt things was-not fair.
Clara // Feb 6, 2005 at 7:35 am
Is it too late to become part of the class action lawsuit?
nathaniel tate // Apr 21, 2005 at 6:28 pm
I am buying a 1999 car that is costing me 25,000 although i traded in a car and payed $1,500.00 down tell me is something wrong with this picture
Vicky S. Ricks // Jun 23, 2005 at 9:46 am
My husband and I recently faced similar experiences with GMAC, we were overcharged on our account, and payments were not posted on time in addition upon redeeming our vehicle from repossession we were treated real bad. What was your experience with the giant coporation?
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