Fifth Third Bank Accused of Bias in Lending

CINCINNATI (CN) – Fifth Third Bank allowed auto dealers to hike interest rates on car loans to black and Hispanic buyers, the Justice Department claims in a lawsuit.
According to a complaint filed in Federal Court on Monday, the bank’s policy was done “in a hidden manner not based on the borrower’s creditworthiness or other objective criteria related to borrower risk.”
The lawsuit says the bank’s policy was done “in a hidden manner not based on the borrower’s creditworthiness or other objective criteria related to borrower risk.”
An investigation by the Consumer Financial Protection Bureau revealed the policy has been in effect as far back as 2010.
The agency says Fifth Third’s “lack of compliance monitoring” meant “the average African-American victim was obligated to pay over $200 more during the term of the loan because of discrimination, and the average Hispanic victim was obligated to pay over $200 more during the term of the loan because of discrimination.”

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