Justice Department and FTC Investigate Big Three Automakers for Potential Discrimination in Car Loans

Federal agencies have launched a probe into allegations that the major US automakers - General Motors, Ford, and Chrysler - have been involved in discriminatory practices in car loan lending, particularly towards minority groups. A spokesperson for Ford Motor Credit confirmed that the company is cooperating with the investigation, while Chrysler has also received an informal request for information about consumer lending policies. The investigation is in its early stages, with officials refusing to confirm or deny its existence.

Key Takeaways:

• The Justice Department and Federal Trade Commission (FTC) are investigating reports of discrimination by the Big Three automakers in car loans, targeting minority groups.
• Ford Motor Credit Corp. has confirmed the investigation, stating that they are responding and cooperating fully.
• Chrysler Corp. has also received an informal request for information about consumer lending policies, but no specific details about the inquiry's target are available.
• General Motors has not commented on the investigation.
• Spokespeople for the Justice Department's civil rights division and the FTC have declined to confirm or deny the investigation.
• The investigation is in its early stages, with agencies preferring not to comment on investigations in their initial inquiry stages.

Statistics:

• The Big Three US automakers are General Motors Corp., Ford Motor Corp., and Chrysler Corp.
• The investigation focuses on car loan lending practices, particularly towards minority groups.
• Ford Motor Credit Corp. has a policy of equal opportunity in car loans.
• Chrysler Corp. has a subsidiary, Chrysler Financial Corp., which is involved in the investigation.
• No specific complaint has been filed against Ford lending practices.
• The investigation is ongoing, but no further details are available.

Sources:

• A spokesman for Ford Motor Credit Corp. (Nick Sharkey)
• A spokeswoman for Chrysler Corp. (Karen Stewart)
• A spokesman for the Justice Department's civil rights division (dw not named)
• A spokesman for the Federal Trade Commission (dw not named)
• Michael Kirkland, UPI (Written by Michael Kirkland in Washington)