A number of African-Americans apply for retail installment credit to purchase motor vehicles. The applicants find out that they were charged higher credit charges than similarly situated white persons. The African-American plaintiffs sue the dealership and its finance company, claiming that the finance company allowed the dealership and its employees to subjectively raise its risk-based finance charge rates on the basis of race.

A federal law known as the Equal Credit Opportunity Act prohibits discrimination against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, welfare assistance, or the fact that the applicant has in good faith exercised any right under the Consumer Protection Act. This section will explain how.

Subsections

1. The Credit Score
2. The Equal Credit Opportunity Act
3. Denial of a Credit Application
4. Credit Insurance