Settlements and Verdicts

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Tennessee Judge Orders Ford Motor Credit

5/17/2005

A Tennessee judge has ordered Ford Motor Credit to take immediate steps to resolve discrimination charges by minority customers.

At the conclusion of a two-week bench trial in Nashville, U.S. District Judge Aleta Trauger said she intended to rule in favor of the African-American plaintiffs.

But, instead of issuing a verdict, she ordered the parties to start negotiating a settlement that will resolve the plaintiffs' claims. If not, she warned, she would decide how to "structure the remedy in this case" herself, the Nashville Tennessean said Thursday.

The judge said the plaintiffs had proven their case that accused Ford's lending arm of routinely charging higher fees to minorities, regardless of creditworthiness.

A central issue in the case was the "markups" that are added to a customer's auto loan rate.

UPI
 

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