siccbruin

FYI.

http://biz.yahoo.com/prnews/040727/dctu047_1.html

iamhomin

Hm.....

Saintor_RENAMED

Why did they conveniently avoid speaking about income? Is it unreasonnable to say that for whatever reason causasian people have higher income?

TSXfan23

No offense to African Amer, but I hardly see African Amer's driving Honda's anyways, but I do see African Amer driving Acuras. Why would Honda discriminate minorities if they're a Japanese company which is a minority here in the USA. , Plus a lot of Asian groups drive Hondas/Acuras from what I've seen. This isn't the 1950's anymore.

soopirV900

I agree with TSXfan23, although I think his perceptions, while accurate, are a bit misguided. What Honda Financial is guilty of doing is racial profiling, not for exclusionary reasons (not because they don't like black people...everyone's money is green, that's the only color that matters). Historically, and I hate to say it (but it's true) more money is lost on bad investments (read: customers) in the automotive industry than is lost on failed design ideas/recalls/lawsuits. The numbers show that more loans fail in the black community than those elsewhere. That isn't to say that ALL black people are defaulters, by no means is that case, but, some are a really risky investment, particularly those (of all races) more concerned with visible status than financial support systems. Every company profiles on credit; that's the whole idea of the process...weed out the risky investments.
I'm sure I"ll get and :flamer: for this post, but the truth's the truth.

BTW- I'm a white guy, bought my TSX with cash... MUA HAA HAA HAA (legitimately acquired...no drugs, just a good 3-months playing the stocks).

toddstuh

Higher income or not, it's unjustified to differ in financing rates based upon a persons heritage. Higher income doesn't necessarily represent lack of indebtedness or the ability to repay either. People earning higher incomes generally have proportionally higher expenses as well.
All financing whether Honda or Acura is financed through Honda Finance which is managed by Americans in the US and not by the Japanese. How many Japanese do you see working at your local Honda/Acura dealership ? Interesting prevalence of southern states. Nissan was caught doing the same a few years ago. Jim Crow lives on ....

Saintor_RENAMED

I don't believe one mionute that when you fill an application for credit, your color is written down. It has all to do with income, assets and credit history.

VTECLuvaLuva

The report isn't saying that Honda is wrong for profiling on credit worthiness the report is saying that Honda is wrong for subjecting certain consumers to two loan markups one based on "tier bumping" and one high markup based on your credit worthiness.

toddstuh

Thats absolutely True and under most circumstances that is the case but apparently in these particular states/locations, people with ethnic backgrounds AND good credit were unfairly charged higher fees or else the court wouldnt have found just cause to find American Honda Finance guilty of discrimination. They obviously broke the law and that's the purpose of our legal system.

This goes on alot more than you'd realize.