Violation Tracker Individual Record

Company: 
American Honda Finance Corporation
Current Parent Company: 
Honda
Penalty: 
$24,000,000
Year: 
2015
Date: 
July 14, 2015
Primary Offense: 
consumer protection violation
Secondary Offense: 
discriminatory practices
Violation Description: 

The Consumer Financial Protection Bureau and Department of Justice resolved an action with American Honda Finance Corporation that will put new measures in place to address discretionary auto loan pricing and compensation practices. Honda's past practices resulted in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans, without regard to their creditworthiness. As part of the order, Honda will change its pricing and compensation system to substantially reduce dealer discretion and minimize the risks of discrimination, and will pay $24 million in restitution to affected borrowers.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Consumer Financial Protection Bureau
Civil or Criminal Case: 
civil
HQ Country of Parent: 
Japan
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
motor vehicles
Specific Industry of Parent: 
motor vehicles
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.