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Business Briefs

Ally paying $98M to resolve auto-loan claims

| Saturday, Dec. 21, 2013, 12:01 a.m.

Ally Financial Inc. is paying $98 million to resolve government claims that it illegally charged minority borrowers higher rates on auto loans than whites with similar credit histories.

The agreement announced on Friday by the Justice Department and the Consumer Financial Protection Bureau is the government's biggest auto-loan discrimination settlement to date.

Ally is paying $80 million in damages to about 235,000 black, Hispanic and Asian and Pacific Islander borrowers, and $18 million in penalties.

Ally said it sets rates based only on borrowers' credit and that it doesn't practice or condone discrimination.

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