Honda, Banks Settle Lending suit

Register now

Honda Motor Co.'s automotive-financing arm and several banks have reached separate settlements with African-American consumers who filed class-actions lawsuits accusing of discriminatory lending, The Wall Street Journal reported.

J.P. Morgan Chase & Co.'s Bank One, Bank of America Corp., U.S. Bancorp and American Honda Finance Corp. agreed as part of the settlement to put tighter caps on interest charge increases by dealers and to offer cars with no mark-ups to 2.4 million minority consumers, it said.

The companies denied any wrongdoing. Before the settlement, the three banks allowed dealers to tack on as much as three percentage points to the annual percentage rate quoted by banks, WSJ said.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER