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Honda to pay $25 mil to settle U.S. discrimination claims

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For instance, they said, the average African-American borrower paid over $250 more during the loan term because of discrimination, while for Hispanics it was over $200 and for Asians over $150.

150 - 250 dollars more? Sure money is money but how cheap were these cars?

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Anyone with 5 minutes of experience in consumer finance can tell you that blacks and Hispanics (as a group) tend to have lower credit scores, and thus get higher interest rates. God forbid that they shop around and compare rates.

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Still stuck on discriminating on Asians. Can you discriminate against your own race? Or are we being more specific with ethnicities, such as Koreans and Chinese?

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CrazyJoe JUL. 15, 2015 - 04:10PM JST Anyone with 5 minutes of experience in consumer finance can tell you that blacks and Hispanics (as a group) tend to have lower credit scores, and thus get higher interest rates. God forbid that they shop around and compare rates.

If it is determined that African-Americans or Hispanics were given higher interest rates than Caucasians with the same/similar credit history, I would certainly consider this to be racially motivated. However, if interest rates were truly based solely on credit factors, and African-Americans on average just tend to have lower credit ratings, then maybe it is not the banks who deserve criticism. Either way, this is worth further examination.

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"Anyone with 5 minutes of experience in consumer finance can tell you that blacks tend to have lower credit scores, Anyone with 5 minutes of experience as a black american should know who the modern day babylon is, and get out.

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Here's an interesting question:

Given identical credit ratings, and given the same loans, do white/asians/hispanics/blacks default or miss payments at the same percentage rate? Or do they differ at all? And if they do differ, could this be used to lawfully discriminate?

Are actuaries allowed to discriminate by race for insurance companies?

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250 dollars more over the entire loan of the car? That's an interest rate increase of .01 I would bet that like 5 percent more minorities got the extra 200 dollar shaft... Why would a Japanese owned car company stick it to Asians in America with discriminatory interest rake hikes of .01 or .005 percent.... This is just blatant redistribution of wealth. Did Honda post good profits because our Justice Department has fined every single multinational company for various reasons after they post good profits...

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CrazyJoe: I have lots of consumer finance experience, and a solid year of university economics, but I never saw it written down that middle class of any race have diifferent charts for loans. Did they color code the list? Are their different columns where you check off the appropriate boxes?

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Truth hurts many people

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I still have faith in Honda from my days following F1 and Senna. I still believe they are a great company now. Even if people they are the laughing stock in F1 now.. Watch them come back to be the best.

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I can end the debate quickly. Honda was found guilty and Honda agreed to pay for their racism. End of discussion.

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Given identical credit ratings, and given the same loans, do white/asians/hispanics/blacks default or miss payments at the same percentage rate? Or do they differ at all? And if they do differ, could this be used to lawfully discriminate?

Don't know but this probably what Honda was doing.

Interestingly, within the EU, under sexual discrimiation laws, insurers cannot distinguish between male and female drivers in charging for insurance, despite men having far worse accident rates than women, and previously higher premiums. This is definitely a case of political correctness overriding common sense.

Honda is probably a case of pure discrimination.

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Now another reason not to buy a Honda.

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@Jumin RheeJUL. 15, 2015 - 04:15PM JST Still stuck on discriminating on Asians. Can you discriminate against your own race? Or are we being more specific with ethnicities, such as Koreans and Chinese?

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There are KIA and other Korean car makers. Honda sales are very low. And Japanese in USA prefer Toyota and Nissan that you can use a button to disable airbags. Also you can pay ATM on your saving and large cash discount dealers give back to you. .Asian is not race. Some states consider Orientals are race as they are Northern Asian. Asian include anyone from Asia. including Japanese. Seems Honda decided to cypher its customers.

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IllyasJul. 15, 2015 - 05:17PM JST

Given identical credit ratings, and given the same loans, do white/asians/hispanics/blacks default or miss payments at the same percentage rate?

That's exactly what you're not supposed to do. If someone has identical credit ratings, leave it at that and treat them as equals, no other questions asked.

Ah_soJul. 15, 2015 - 09:48PM JST

Interestingly, within the EU, under sexual discrimiation laws, insurers cannot distinguish between male and female drivers in charging for insurance, despite men having far worse accident rates than women, and previously higher premiums. This is definitely a case of political correctness overriding common sense.

I think the EU policy you mentioned makes sense. Honestly, I think many people and government policies nowadays forget the true meaning of equality, which in my opinion is "only be selective after you have given everybody an equal chance, and a determination can be made how individuals can be categorized". If a male and female at the same age both just obtained their drivers license yesterday, shouldn't they be able to start off with the same insurance rates?

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This is one example of US Government discrimination against International Companies which are doing business in US.

How much US authority (NHTSA) fine GM for hiding decade for faulty in cars and drivers and passengers died because of defective ignition switches?

GM was fine just $ 35 million for GM for hiding decade for deadly defective ignition switches in cars and over 100 drivers and passengers died in accident causing by defective ignition switches.

Toyota was fined $ 1.2 billion for unintended acceleration and hiding defective from US authority even though there's no evidence about defective in Mechanism or ECU in Toyota cars.

GM and Toyota both didn’t report to NHTSA about accidents but GM was hiding from US authority longer than Toyota. Also GM knew about defective and over 100 peoples were died from defective ignition switches but GM was fine a few million bucks and Toyota was fined $ 1.2 billion by US authority.

Now Honda was fine for $ 25 million for wrong doing.

No International Company is daring to complain about US Government for unfair trade practice to WTO and may be they don’t want retribution from US Government.

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so much for the honest japanese businesses... shame on you honda.

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chopchop? GM and Toyota cases you wrote, How they discriminated dead people?

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Honda was fined for discriminated. CFPB does not go on dead cases. Notice F stands for Finance, not death.

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Honda is well respected for its high moral. I don't believe they did any discrimination.

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@eina Read article why it was accused. And what kind of cheating its finance division It is discrimination USA financial division did. Respected in one country is not going to be used in defence in USA.

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It is the dealers who mark up the interest rates. Honda Finance sets the base rate and the dealers add to that to make profit for the dealership. It's up to the consumer to say yea or nay to the deal.

Same thing with the purchase price. Less savvy consumers end up paying more. Survival of the fittest, I suppose.

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I can end the debate quickly. Honda was found guilty and Honda agreed to pay for their racism. End of discussion.

lol no, clearly you don't understand the justice system. They settled this. When you settle something, you don't actually admit guilt. Think about it from Honda's perspective - what costs less, legal fees + horrible PR from a case like this, or $25m? I'm not saying they're innocent or guilty, but it's important to make this distinction.

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It is end of case. Honda was in defence seats. To get less verdict, they appealed to plea bargain and pleaded GUILTY That is why money only. Lucky DA accepted plea bargain. Too many business cases kn that coutt

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Honda recently built an airplane because it was the long held dream of the late founder Souichiro Honda. They place priority on customer satisfaction.

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@tina: Please select National on JT board to find what kind of heart warning action Honda does nearby Disneyland and Angels home field. If you want to praise Honda, commenting airplane is not too good. There are bunch of private people or corporations that own unique designed airplanes and in USA, often accident with dead people or one surviver hiked two days. And customer satisfaction is norm everywhere in USA that it dues not impress American people.

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toshiko - my point is I trust Honda more than US court.

customer satisfaction is norm everywhere in USA

Very rarely.

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The word authority in trial? tina visit US. Or attend a trial in japan ' ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

Honda got off easy with plea bargain

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toshiko - Japan's court is better than US's, money talks in US court.

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@tina: Don't defame Honda, please. There is no proof Honda brivde or not even rumor that Honda brived US Jusyice Dept/

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toshiko - I'm not defaming Honda, US court is. US court is a joke, not evidence based, probably colluding with greedy lawyers. They are suing Japanese (and other) companies one after another. Even I was sued in U$.

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tina: US court do not sue.
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chopchop You weote

GM and Toyota both didn’t report to NHTSA about accidents but GM was hiding from US authority longer than Toyota. Also GM knew about defective and over 100 peoples were died from defective ignition switches but GM was fine a few million bucks and Toyota was fined $ 1.2 billion by US authority. ==

Since this is about discrimination story, I thought they might discriminated classified by their races and gave different amount money to family you might have ubfi, I have info on what GM was hiding ,,,, maybe race???? Iwas wondering

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Chop ChopJUL. 16, 2015 - 01:15AM JST How much US authority (NHTSA) fine GM for hiding decade for faulty in cars and drivers and passengers died because of defective ignition switches? GM was fine just $ 35 million for GM for hiding decade for deadly defective ignition switches in cars and over 100 drivers and passengers died in accident causing by defective ignition switches.

Source: http://www.autosafety.org/history-gm-side-saddle-gas-tank-defect

The side saddle fuel tank design installed in over 10 million trucks - all 1973-87 General Motors full-size pickups and cab-chassis trucks (pickups without beds) and some 1988-91 dual cab or RV chassis - is the worst auto crash fire defect in the history of the U.S. Department of Transportation. Based on data from the Fatality Analysis Reporting System (formerly known as the Fatal Accident Reporting System), over 2,000 people were killed in fire crashes involving these trucks from 1973 through 2009. (Attachment A is a list of fatal C/K fire crashes by state since 1993.) This is more than twenty times as many fatalities as in the infamous Ford Pinto. Despite a voluntary recall request from the National Highway Traffic Safety Administration (NHTSA) in April 1993 (Attachment B) and an initial defect determination by Transportation Secretary Federico Pena in October 1994 (Attachment C), GM stubbornly refused to initiate a recall.

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@sfjp: so it is not discrimination like Honda did. Worse but not discrimination

Thank you sflp. Rich or poor black people are discriminated. Oprah could not see alligator bag in a store while any white people salesmen showing. unfortunatelly tp store. star chasing reporter caught scene. All over in US news. Oprah said Don't worry I am used to
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actually honda was not found guilty but did the same as most companies do when faced with the current tax structure of the USA- they settle. the cost of court would far exceed anything that would be saved. it would take 10 years to try the case , in the meantime you have this outstanding court case available for political use in the upcoming elections.

best to settle

the usa makes more money - this is the redistribution of wealth that is spoken off- and the case goes away until the country needs more money

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@paark: We call that plea bargain.

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