The House of Representatives is preparing to vote on a bill – H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act – that would make it harder for the Consumer Financial Protection Bureau to crack down on auto lending practices that lead to consistently higher interest rates for Black as well as Hispanic and Asian-American car buyers. Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights, issued this statement in response:
“Discrimination undermines the civil rights of all Americans, whether in in voting rights, access to quality schools, or racial profiling by law enforcement. Lending discrimination is no different. When lenders redlined Black residents out of homeownership or gouged them on mortgages, we passed laws like the Fair Housing Act. But the vestiges of lending discrimination remain alive and well in the auto industry. We cannot allow auto lenders to charge Black borrowers more than Whites simply because of their skin color. A vote in support of this bill is a vote to ignore lending discrimination.”
Over 98% of all American citizens are non-wealthy meaning they have earned incomes below $25k annually.
Consequently, even with combined household incomes, they do not qualify for conventional loans for mortgages.
Lending discrimination and RED-Lining are institutional processes to suppress lower-income citizens from participating in America`s socio-economic, political