On May 22, 2014, the Center for Responsible Lending, in partnership with other civil and consumer rights advocates, will host a briefing on the auto lending abuses that affect communities of color, low–wealth and the military. The briefing will take place in the House Transportation Committee room, at 2 pm.
Few household transactions are as significant, or as large, as the purchase of a family car. Recently, federal regulators have shone a spotlight on potential discrimination in car lending. The discussion will focus especially on the practice of car dealer interest rate markups – where dealers are given discretion to increase the interest rate for compensation. This practice, which only a few consumers know exists, is cited as the reason for that discrimination. And, this issue goes further than the potential discriminatory impact. Research conducted by the Center for Responsible Lending shows that for those who bought cars in 2009, those consumers will pay $25.8 billion of additional interest over the lives of their loans to pay that compensation.
Civil rights and consumer advocates will discuss the depth and extent of auto lending abuses, including those communities disproportionately affected and the financial toll the abuse takes on families. The panelists will also discuss the regulatory landscape and help dispel some of the myths about auto finance. The event will include a Q+A session, as well as discussion on regulatory solutions to mitigate and eliminate the impact.
Panelists will include:
- Enrique Lopezlira, National Council of La Raza
- Hilary Shelton, National Association for the Advancement of Colored People
- Chris Kukla, Center for Responsible Lending
- Michael Archer, Legal Assistance - Marine Corps Installations East
For more information, contact Millree Williams, at firstname.lastname@example.org, or 202.349.1884