Banks Are Now on the Hook for Race-Based Car Loans

Photograph by David Paul Morris/Bloomberg

Auto lenders, you’re up next. The Consumer Financial Protection Bureau put banks on warning Thursday that they could be liable for discriminatory car loans, even if they didn’t directly sell the loans to consumers. The bureau is concerned about research that has found that black and Latino borrowers may pay higher interest rates than white borrowers, even if they pose a similar credit risk.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.