When you decide to buy a car, you are probably going to need an auto loan. And you want your car loan to be at the lowest rate possible, so you don’t pay more money than you have to. But the government believes that if you are black or Hispanic, you may have been charged a higher interest rate simply based on the color of your skin.
The Consumer Financial Protection Bureau has started a national investigation into lending practices of various dealerships and financial institutions that provide auto loans to consumers.
They believe their investigation proves that if you walk into a dealership and are white, you will be offered a lower auto loan interest rate than if you are not white – even if you are able to make the same down payment and have the same credit history.
The Bureau is continuing to gather data on the industry. If you are a member of a minority group and feel you have been overcharged for your auto loan, you may want to contact them in order to be a part of any eventual settlement reached with the industry.
If you are interested in how auto loan rates affect your payments, you can use our free auto loan calculator.