Ally To Pay $98M Over Discriminatory Auto Lending Claims

Law360, New York (December 20, 2013, 12:33 PM EST) -- Ally Financial Inc. on Friday agreed to pay $98 million to settle charges it discriminated against black, Hispanic, Asian and Pacific Islander auto loan borrowers by charging them higher interest rates.

The Consumer Financial Protection Bureau and the U.S. Department of Justice said the settlement, which requires Ally Financial and Ally Bank to pay $80 million in damages to harmed borrowers and $18 million in penalties, is the largest auto loan discrimination settlement in history. The agencies had accused Ally of violating the Equal Credit Opportunity...
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