In 2013, the CFPB, along with the Department of Justice, settled claims against Ally Financial for violating “fair credit laws by charging minority borrowers higher markups on auto loans than white customers.” Ally agreed to pay $98 million in restitution, with $80 million going to consumers in damages and another $18 million as a civil penalty to the CFPB.

• “Late last week, the Justice Department and CFPB said they struck a $98 million settlement with Detroit-based Ally Financial. The government said the company violated fair credit laws by charging minority borrowers higher markups on auto loans than white customers.” [David Sherfinski, “Consumer board’s ‘guidance’ against discrimination angers car dealers, lawmakers”, Washington Times, 12/23/13]

• The “$98 million agreement” was, at the time, “its largest-ever auto loan discrimination settlement.” In a lawsuit filed by the Department of Justice “in federal court in Michigan requires Ally Financial and Ally Bank to pay $80 million in damages to consumers” in addition to an $18 million civil penalty solicited by the CFPB. The settlement also required Ally Financial “to improve its monitoring and compliance systems.” [David Sherfinski, “Consumer board’s ‘guidance’ against discrimination angers car dealers, lawmakers”, Washington Times, 12/23/13]