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Lawsuit Says DaimlerChrysler Treated Black Car Buyers Unfairly
(Special to the NNPA)—DiamlerChrysler, the nation’s third-largest automobile manufacturer, has systematically denied loans to African-Americans based on their race and where they live, according to a suit filed in U.S. District Court.
The suit is seeking class-action status against DaimlerChrysler Services, was filed last week on behalf of six Chicago residents who were denied credit for vehicles under zero-percent and low-interest financing offered since October 2001.
''We're saying they didn't just add hidden charges, they boycotted or redlined Black customers,'' said Steve Berman, Seattle attorney and the plaintiff's lead counsel in the suit against Chrysler. ''They all had good credit ratings, and all of them passed Chrysler's own rating system.''
Chrsyler customer Jerrell Coburn told reporters he expected to receive 2.9 percent financing on a vehicle he purchased. However, Coburn received 9 percent.
''Once it was time to sign the papers, I asked what happened. The dealership told me this was the best they could do,'' Coburn said in the lawsuit. ''I should have walked away, but I was caught up in the excitement of driving away in my new car,'' said Coburn.
Among other charges, the suit says Chrysler illegally repossessed vehicles from 70 Black customers after they were approved for financing. It quotes a Chrysler executive as using racial slurs in meetings with dealers as he explained that a Black Chrysler employee was fired because he had approved the 70 loans.
James Ryan, a spokesman for DaimlerChrysler, told reporters the company had not seen the suit. However, he said, ''We're absolutely outraged by the allegations and deny each of them. We're confident our credit evaluation process treats all applicants fairly and lawfully. Our credit decisions are based on creditworthiness and are colorblind.''
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