The Accidental Racist Edition – Honda, Toyota and Nissan Lending Practices Cited as Discriminatory

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July 04, 2015


The Accidental Racist Edition –

Honda, Toyota and Nissan Lending Practices Cited as Discriminatory



Automotive loan discrimination


For shame auto lenders! For shame! You are accidentally discriminating against minorities and you didn’t even know it! At least that is what the Consumer Financial Protection Bureau (CFPB) is saying. I can’t make this up. Honest, look at this article:


According to this article, the CFPB is citing American Honda Financing Corp., Toyota Motor Credit Corp., and Nissan Motor Acceptance Corp. for discriminating against minorities. On accident. Or unintentionally.


According to the legal theory of disparate impact, the CFPB argued that lending practices—the dealer’s reserve in this case—that could (or might) have unintentional negative impact on minority car buyers, is discriminatory and those practices need to be changed—according to the mantra of all liberal thought—to level the playing field.


Apparently, letting a dealership set its limits on dealer reserve to half of what it is now is what has been deemed fair. The article cites Honda’s points, which range from 200 to 225 and cut them to 100 or 125 depending on the contract. Adjusting these numbers would somehow magically give minority car buyers better rates and more manageable payments. CFBP is even going so far as to recommend lenders switch to flat fee or fixed rates based on the purchase price.


I just can’t.


I don’t even know where to begin. Except for maybe to say this: STOP! This is ridiculous. Basically we want to remove all incentive for paying bills on time.

And I hate to point this out, but isn’t saying minorities don’t have good credit scores more discriminatory than telling a dealership they are putting minorities at a disadvantage? Did I miss something here? Was there a study done that says only minorities have poor credit scores?


You know this country was great once because we had the strength of the individual American, regardless of majority or minority status (and how pathetic are we now that we even have to say that? Why can’t we all just be Americans?). But now here is this notion of fair play and the government helping everyone get ahead and I just don’t understand how telling a private company how they must conduct business is just. I don’t see how telling a citizen who is not a credit risk that he does not get a decent rate because a citizen who is a credit risk gets a government mandated good rate too. Because that is the new American way. Penalize the ones who are succeeding.


But what do you think?


Post your comments below!



My Final Thought:


  1. Congratulations, you made it, Toyota. Toyota’s hydrogen fuel cell vehicle, the Mirai, can cruise 312 miles before needing more hydrogen.


I’ve always said that range was an issue. And Toyota did it. Of course, they have to include three years or $15,000 of hydrogen. And the Mirai still costs almost $58K before rebates. And the only real infrastructure is on the West Coast—and even there it is scant. And it’s not the most attractive design.


But hey, they get Zero Emission Vehicle credits now. Hooray on that, I guess.



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Love Your Car! See you next week!


–Lauren Fix



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