Obama's Justice Dept. Shakes Out Fines From False Allegations of Racism

[michiganmoon]

Originally Posted by lvoc

That is all in the base rate Ally charged. This is the kickback to the dealer piece. No particular reason it has anything to do with credit risk or such. No finding that the base rate was discriminatory. Just the dealer add-on which was collected by Ally and paid to the dealer. Basically Ally was collecting a fee for the dealer which was sized in a discriminatory way...

Those additional rates are effected by credit worthiness, which is why the DoJ says the blacks are equal in credit worthiness to whites.

Sorry, but real world has risks and it effects the costs of products and services. Which is also why inner city Cleveland has a higher car insurance rate than rural Kansas -- the car is more likely to be stolen there. Nothing to do with racism.

[lvoc]

Originally Posted by michiganmoon

Those additional rates are effected by credit worthiness, which is why the DoJ says the blacks are equal in credit worthiness to whites.

Sorry, but real world has risks and it effects the costs of products and services. Which is also why inner city Cleveland has a higher car insurance rate than rural Kansas -- the car is more likely to be stolen there. Nothing to do with racism.

Why would that be? I would think no fee makes more sense. Whatever it failed to convince the gov.

I wonder if the spif was disclosed to the buyer? Betcha not.

[michiganmoon]

Originally Posted by lvoc

Why would that be? I would think no fee makes more sense. Whatever it failed to convince the gov.

I wonder if the spif was disclosed to the buyer? Betcha not.

Why would people with worse credit scores, more debt, etc get a worse interest rate? Because people of all races with those attributes are seen as more of a risk to not pay it back - so they collect more money from the interest to mitigate that risk.

The government is not saying that the above doesn't happen. They are saying they were doing that, but charging more to blacks as compared to whites with the same credit worthiness - while NOT checking out the actual numbers as to these individuals credit scores, etc... Hence back to square one - the DoJ GUESSED their credit worthiness based on their addresses and the value of the car* = BS.

You know the interest rate when you sign on the dotted line.



* the DoJ even ignored the down payment.

[lvoc]

Originally Posted by michiganmoon

Why would people with worse credit scores, more debt, etc get a worse interest rate? Because people of all races with those attributes are seen as more of a risk to not pay it back - so they collect more money from the interest to mitigate that risk.

The government is not saying that the above doesn't happen. They are saying they were doing that, but charging more to blacks as compared to whites with the same credit worthiness - while NOT checking out the actual numbers as to these individuals credit scores, etc... Hence back to square one - the DoJ GUESSED their credit worthiness based on their addresses and the value of the car* = BS.

You know the interest rate when you sign on the dotted line.



* the DoJ even ignored the down payment.

You don't seem able to understand what is going on here.

this is not the question of what the bank is going to charge the buyer. It is a question of what fee the dealer will get for sending the client to Ally.

Ally is fully protected by the base rate. The question is how much more can the dealer suck out of the buyer to pay him for taking the loan to Ally. Has nothing to do with risk or such.

[Marv101]

This administration has been looking for racism wherever it can find it, and that editorial's spot-on analysis on how this DOJ uses 'disparate results' in order to extort shakedown money perfectly summarizes the mindset of this administration, especially their whining about predatory lending, which is also equally idiotic since the Democrats made it the law of the land but will never admit it.

Al Capone wasn't this good.