Posted on 02/07/2014 5:06:25 PM PST by jazusamo
Racial Politics: Like mortgage lenders, the auto industry is inoculating itself against trumped-up racism charges by adjusting the way it prices loans. Eric Holder's witch hunt is spreading — and doing lasting damage.
On Friday, the National Automobile Dealers Association issued new "fair credit" guidelines to protect the 16,000 car dealers it represents from discrimination lawsuits filed by the Justice Department and Consumer Financial Protection Bureau. The agencies have teamed up to frame car lenders as bigots after successfully framing home lenders.
"Fulfilling these goals is particularly important in light of recent allegations," NADA said in a memo to members.
Last month, Attorney General Eric Holder and his diversity cops sent a chill through the industry when they slapped the nation's biggest auto lender, Ally Bank, with a $100 million penalty for alleged racist "mark-ups" on loans to minorities.
"With this largest-ever settlement in an auto loan discrimination case, we are taking a firm stand against discrimination in a critical lending market," Holder said. "By requiring Ally to provide refunds to those who are overcharged because of their race or national origin, this agreement will ensure relief for Americans who are victimized."
What's more, Holder snarled, "it will reinforce our determination to respond aggressively to discrimination in America's lending markets — wherever it is found."
Ally denied the charges and argued there's no evidence its participating dealers are discriminating either. But lenders and dealers alike are under growing political pressure from not only Justice but the CFPB, Obama's new credit cop, to comply with new race-based lending standards.
CFPB chief Richard Cordray last week claimed racism "is fairly widespread" in the auto industry.
(Excerpt) Read more at news.investors.com ...
This proves that Obama and fellow crook Holder still believe this is 1950 and lending institutions just hate all black people. The facts are black loan seekers, on average, have poorer credit ratings than white loan seekers who have lower credit ratings than Asian loan seekers. Appeals to reason cut no ice with racialists determined to find racism in every nook and cranny.
The way I read it, the rates for borrowers with good credit scores is going up.
This will translate into less auto sales as people say no thanks and keep their car a little longer.
Welcome to Obamanomics.
Used cars Re going to be dirt cheap in a year or so
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