Black auto buyers get raw deal, not a fair deal

malveauxheadshot_edited-2013.jpg
JULIANNE MALVEAUX

With new car prices meeting or surpassing many consumers’ incomes, the vast majority of people finance their car purchases. On an annual basis, according to the Center for Responsible Lending, over 79 percent of auto loans occur through third-party indirect lenders that partner with dealerships.
Then following most purchases, many consumers wonder whether or not the deal they signed was a fair one. Specifically, Black consumers too often get a raw deal rather than a fair one. Oftentimes, Black borrowers and other consumers of color pay more for their auto loans than do similarly-situated White borrowers.
On Thursday, Sept. 18, the Consumer Financial Protection Bureau took its traveling field hearings to Indianapolis, the Hoosier heartland’s capitol. At the forum Richard Cordray, CFPB Director, announced the Bureau’s proposed expansion of its supervision of auto finance to now include larger and non-bank entities. CFPB could then better ensure full and fair legal compliance among 38 auto finance companies that together originate nearly 90 percent of all non-bank auto loans and leases.
In early 2014 American consumers, according to CFPB, had more than 87 million auto loans valued at nearly $900 billion.

About Post Author

Comments

From the Web

Skip to content