Ally Bank To Pay $98 Million For Charging Higher Interest To Non-White Borrowers

[dixiegrrrrl]

This shit is STILL going on.
But with a twist...

Earlier today, the Justice Dept. and the Consumer Financial Protection Bureau announced the largest auto loan discrimination settlement in U.S. history with the news that Ally Bank has agreed to pay $98 million, including $80 million in refunds to settle allegations that it has been charging higher interest rates to minority borrowers of car loans.

Ally provides what are known as “indirect” auto loans to consumers, meaning it provides auto dealerships with loans at a set, risk-based interest rate and then allows the dealerships to add on a “dealer markup,” which can then be split between the dealership and Ally.
..........Ally violated the law by charging African-American, Hispanic, and Asian and Pacific Islander borrowers higher dealer markups for their auto loans than similarly-situated non-Hispanic white borrowers.
In total, some 235,000 borrowers paid higher interest rates than they should have.

http://consumerist.com/2013/12/20/ally-bank-to-pay-98-million-for-charging-higher-interest-to-non-white-borrowers/

[ananda]

1. Now what about all those big banks that ...

... caused minorities to lose their homes.

[brush]

2. And the repugs and Supreme court . . .

say that there is no more racism.

[MannyGoldstein]

3. Thank you Elizabeth Warren (who's not running)!

For creating the CFPB!

[DJ13]

4. I see what you did there

[Enthusiast]

10. Manny was doing a preemptive strike.

[MannyGoldstein]

11. Quicker than reading the 24 posts

that inevitably follow each mention of Sen. Warren

[Enthusiast]

14. This is true.................nt

[Scuba]

5. Snort!

[rhett o rick]

7. Elizabeth who? nm

[rhett o rick]

6. How much of that will go to attorneys? Serous question. nm

[El_Johns]

9. I was wondering the same; will the borrowers be reimbursed, or just the lawyers?

[ProSense]

8. The CFPB is

really stepping up.

U.S. orders mortgage servicer Ocwen to help borrowers with $2 billion

By Emily Stephenson

(Reuters) - U.S. officials on Thursday ordered the largest nonbank mortgage servicer to provide $2 billion in help to underwater borrowers to resolve allegations of misconduct that led to thousands of people losing their homes.

Ocwen Financial Corp must reduce loan balances for struggling homeowners and refund $125 million to foreclosed borrowers under an agreement with the U.S. Consumer Financial Protection Bureau and officials from 49 states and the District of Columbia.

Ocwen failed to account for borrowers' payments, gave false reasons for denying loan modifications and robo-signed legal documents, the consumer bureau said.

In many cases, after Ocwen began servicing loans, it did not respect trial modifications that had already been agreed to by the lenders, consumer bureau Director Richard Cordray said.

- more -

http://www.reuters.com/article/2013/12/19/us-financial-regulation-ocwen-idUSBRE9BI0ZT20131219

This is why Republicans blocked Cordray for so long.

Elizabeth Warren: Cordray Vote ‘A Historic Day For Working Families’

Sen. Elizabeth Warren (D-MA) took to Twitter on Tuesday in praise of the Senate's vote to advance Richard Cordray's nomination to the Consumer Financial Protection Bureau, calling it a "historic day for working families."

Elizabeth Warren ✔ @elizabethforma

I couldn't be more pleased that Rich Cordray will finally get the vote that he deserves. This is a historic day for working families!
1:11 PM - 16 Jul 2013

47 Retweets 26 favorites

http://livewire.talkingpointsmemo.com/entry/elizabeth-warren-cordray-vote-historic-day-for-working

The Consumer Financial Protection Bureau gets busy (July)
http://www.democraticunderground.com/10023372682

[onethatcares]

12. which executives have gone to jail

in this??

Seems like a RICO violation to me t conspire to treat one class of people different than the rest.

[SoCalDem]

13. "Paying $98M".. to

the actual people they defrauded?..UNLIKELY..

These judgments/fines are OWED to the people who were harmed, but they usually end up getting nothing.

[Number23]

15. But..."it's not race, it's class!!1" "Bickering" about race is sowing divisions that aren't there!1!

K&R