CLEVELAND, Ohio — Fifth Third Bank discriminated against black colored and Hispanic customers by asking some greater rates of interest on automotive loans without any reason associated with credit-worthiness, the buyer Financial Protection Bureau said Monday afternoon. The bank also engaged in illegal credit card practices, the regulator said in a separate issue.
The CFPB is needing 5th Third — which can be Ohio’s bank that is largest by assets — to pay $18 million to minority car loan customers and $3 million to charge card clients.
The action because of the CFPB in addition to Department of Justice additionally requires Cincinnati-based 5th 3rd to alter its compensation and pricing framework to lessen the opportunity of discrimination.
“Consumers deserve a level playing field if they enter the market, specially when funding a vehicle,” U.S. Attorney Carter M. Stewart associated with the Southern District of Ohio stated in a declaration. “This settlement stops discrimination in establishing the purchase price for automotive loans.”
5th В«linkВ» Third could be the bank that is ninth-largest automobile loan provider in the usa.