Fifth Third Bank, a Cincinnati-based financial institution with branches in Georgia, has agreed to an $18 million settlement after being accused of charging blacks and Hispanics more than others for auto loans made through dealerships, according to the U.S. Department of Justice.
The banking company also agreed to change the way it prices its loans by limiting dealer markup to 125 basis points, or 1.25 percent, for loans of 60 months or less, and to 100 basis points, or 1 percent, for loans greater than 60 months. Previously, Fifth Third allowed dealers to raise interest rates as they saw fit.
Feds: Fifth Third Bank to pay $18M for overcharging blacks,... | www.ajc.com
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