Saturday, December 28, 2013

Breaking Compliance News - December 2013

CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing
Ally to Pay Additional $18 Million in Civil Penalties for Harming More Than 235,000 Minority Borrowers
WASHINGTON, D.C. The Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) today ordered Ally Financial Inc. and Ally Bank (Ally) to pay $80 million in damages to harmed African-American, Hispanic, and Asian and Pacific Islander borrowers and $18 million in penalties. The CFPB and DOJ determined that more than 235,000 minority borrowers paid higher interest rates for their auto loans between April 2011 and December 2013 because of Ally’s discriminatory pricing system. Today’s orders represent the federal government’s largest auto loan discrimination settlement in history. 

Car dealer accused of trying to get fraud witness — his uncle — killed

A suburban car dealer plotted to kill his uncle in a doomed attempt to beat a federal fraud case, prosecutors allege.

Sikh salesman settles suit against Lexus dealership

A car salesman, who is a member of the Sikh religion, has won a lawsuit against a Lexus dealership, where he had applied for work. The dealership had a policy that the prospective salesman said violated his religious beliefs. 

Lawsuit accuses some employees at 2 Charleston-area auto dealerships of using sham trade-ins to boost sales 

A newly filed lawsuit alleges that some employees at two Charleston area auto dealerships participated in a scheme to dupe low-income buyers into purchasing vehicles they couldn't afford.