Posted on 11/06/2013 5:48:49 PM PST by Titus-Maximus
Special Series: The War On Banks
The Obama administration is no longer investigating just mortgage lenders for allegedly discriminating against blacks and Latinos. It's now also targeting banks making auto and student loans.
Opening a new front in the war on banks, the Consumer Financial Protection Bureau is investigating and preparing to sue Ally Financial Inc. and at least three other major auto lenders for allegedly overcharging minority borrowers.
"A persistent problem is the evil of discrimination," proclaimed Richard Cordray, the bureau's recess-appointed director.
Though financial reforms don't authorize the new credit watchdog to probe auto dealers, "auto lending is within our jurisdiction," Cordray asserted.
"We are examining institutions around auto lending just as we are looking at them on mortgage, credit cards, student loans."
The bureau is pursuing racism charges based on "disparate impact," a dubious legal theory that uses statistical models to prove bias. "It makes no practical difference whether a lender consciously intended to discriminate," Cordray warned.
As with home loans, blacks and Latinos historically have been found to pay more for car loans than whites.
But the administration's "discriminatory effects" analysis excludes key credit factors explaining racial gaps.
It also ignores stats showing Asian minorities tend to get better deals than whites.
CFPB is expected to adopt tactics used by the Justice Department against the auto industry.
In 2010, a U.S. district judge scolded the department for filing a "deficient" complaint against Los Angeles auto lenders and dealers for pricing discrimination. He said prosecutors "did not consider other factors" affecting loan rates in their disparate impact analysis, and dismissed the case.
(Excerpt) Read more at news.investors.com ...
Actually this is a flank assault as part of Obama's ever expanding racial agitation.
I thought that he already “nationalized” student loans.
This concept of “disparate impact” is terrifying and has to be exposed and fought wherever possible. It essentially means the government doesn’t have to prove intent or malice to convict a citizen of a crime. All that’s required are some statistics.
Actually citizen isn’t the proper term in this case, you can substitute serf or slave at your discretion.
Repeat after me. Reparations. Free stuff.
Pwned! I don’t exactly know what that means but I know it means that you are absolutely correct!
Bankers are assholes. Yes I said it. If the gov accuses you of something that you can prove otherwise in court, they think avoiding bad PR and settling will make the problem go away. It doesn’t because the tormentor will come back for another demand and payment. If banks stop scheming on how to get bailout money from taxpayers and use the same skills in winning court cases against dubious charges of racism. Bankers are such pussies except against Main Street Americans and taxpayers.
Can we file complaints over obamacare with the Consumer Financial Protection Bureau?
“Repeat after me. Reparations. Free stuff.”
I would not be surprised if the day after the 2014 election Obama isn’t on television demanding reparations.
Pelosi has already signaled she’ll be pushing for free government subsidized childcare for working mothers.
Pass these two new entitlements and we will see the dollar collapse immediately.
I guess now we will have to have Affirmative Action on credit scores.
Though financial reforms don't authorize the new credit watchdog to probe auto dealers, "auto lending is within our jurisdiction," Cordray asserted.
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