Originally published January 31 2005
Bank One and Bank of America may settle class action suit over raising car loan rates for blacks
by Mike Adams, the Health Ranger, NaturalNews Editor
JP Morgan's Bank One unit and Bank of America may settle in a class action suit against the two banks. The suit contends that the two banks upped their interest rates on car loans for blacks and seeks to limit the finance charges that auto dealers add to the loans. Most analysts agree that the suit could lower car loan rates for all consumers.
Two major banks are discussing possible settlements of class-action lawsuits filed by black consumers who contend they were charged more for auto loans than whites were, according to a published report.
Any settlement could affect the price of loans taken by millions of auto buyers, although no agreement appears to be near, The Wall Street Journal reported Monday, citing people familiar with the talks.
The plaintiffs' attorneys are asking Bank of America Corp. and J.P. Morgan Chase & Co.'s Bank One unit to limit how much auto dealers can add on to the financing rates both banks charge, the newspaper reported.
The suits contend that dealers boost the cost of the loans more for black borrowers than for whites, and that the banks' policies allow for such discrimination.
Bank of America declined to comment Monday to The Associated Press.
A company spokeswoman, Shirley Norton, told |the newspaper that the bank was "in talks" about the case, but declined to characterize the discussion as settlement talks or describe how far they had progressed.
Tom Kelly, a spokesman for J.P. Morgan Chase in Chicago, said: "We are in discussions with plaintiffs' attorneys to resolve the litigation."
The Journal said any settlement could lead to cheaper loans for all car buyers by curbing industry practices that - beyond the bias allegations - are legal in most states and burnish the dealers' bottom lines.
Trials in the separate cases are expected later this year.
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