Federal judge says Ford credit unit charged black customers higher rates

Federal judge says Ford credit unit charged black customers higher rates

[JURIST] US District Court Judge Aleta Trauger ruled Wednesday that plaintiffs in a class-action suit against Primus Automotive Financial Services [corporate website], a lending unit of Ford Motor Co. [corporate website], has proved that the unit discriminated against black customers by charging them higher rates on car loans. The suit claimed blacks were charged hundreds of thousands of dollars more than they should have been. The plaintiffs sought an end to the discriminatory practices rather than damages, though Primus will have to pay attorneys fees. Judge Trauger is giving the two sides 30 days to negotiate a settlement. Several lawsuits against financing companies for automakers for discrimination against blacks have been brought since 1998, but the suit against Primus was the first to go to trial. Read the order [text, PDF] in Borlay v. Primus Automotive Financial Services, Inc. AP has more.