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Not one single time, when I've filled out a loan application, (in the past for a car, for example), has any bank or institution EVER asked me for my race.
Not one single time, when I've filled out a loan application, (in the past for a car, for example), has any bank or institution EVER asked me for my race.
Total thread fail.
Maybe Ally should have hired you as their attorney then.
Blacks in this country have a younger age distribution than whites - higher birth rates and higher death rates = younger population. Blacks have lower average and median income and we know how important iincome is in qualifying for a home loan. Higher unemployment rates and poorer health suggests blacks may have a greater degree of income disruption, which of course lenders HATE to see, not to mention loss of income often causes credit problems and lower credit scores. Younger age distribution BY ITSELF means blacks will have lower credit scores than whites as a group.
I guess you missed the word, "allegedly" in the article.
Quote:
The dealers allegedly charged some 235,000 minority customers the higher rates based on race rather than a documented credit history, according to the complaint. The borrowers paid on average about $200 to $300 extra over the life of the loan.
The settlement marked the first joint fair lending enforcement action between the Justice Department and the CFPB, which was established under the 2010 Dodd-Frank financial reforms.
Ally will pay $80 million in compensation back to consumers who were discriminated against, and an $18 million penalty.
Ally didn’t confirm or deny the charges as part of the settlement.
...In a statement, Ally said it doesn’t make loans directly to consumers but buys installment contracts from dealers. Ally said race and ethnicity aren’t considered as part of their evaluation of those contracts.
“Ally assesses these contracts and sets pricing based solely on a consumer’s creditworthiness and contract characteristics,” the statement said.
Experts say the effective end of credit makes economically distressed neighborhoods more vulnerable to foreclosure, abandonment and blight.
When banks evaluate loans they don't just look at the person, they look at what the loan will be used for and the collateral. If the homes is in an area that is distressed, it doesn't make for good collateral.
Because poor white probably pay the few bills that they have on time thus they have a better credit rating despite of their income. Most blacks that I've seen and lived around that are from low income areas are more interested in living beyond their means, get into bad auto loan and payday loan deals, and then default because they can not pay. When I drive through low income Black neighborhoods, they all have on designer clothes, gold teeth, jewelry, and new cars with big rims... When I drive by low income white areas, they have late model cars, regular clothing, and seem to be living according to their income aka have money to pay their bills.
Because poor white probably pay the few bills that they have on time thus they have a better credit rating despite of their income. Most blacks that I've seen and lived around that are from low income areas are more interested in living beyond their means, get into bad auto loan and payday loan deals, and then default because they can not pay. When I drive through low income Black neighborhoods, they all have on designer clothes, gold teeth, jewelry, and new cars with big rims... When I drive by low income white areas, they have late model cars, regular clothing, and seem to be living according to their income aka have money to pay their bills.
When I drive in low income black neighborhoods, I see people in regular clothes and driving older model cars. The only nice cars were being driven by people driving through and visiting. It's the same for low income white neighborhoods.
I have a friend who processed loans for a bank and he told me that people would get mad when the bank wouldn't give them a loan even though they had a high income. Your income does not matter as much as whether or not you pay your bills. You could make 1M per year but if you never pay your bills you're never getting a loan.
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