WASHINGTON, Oct. 1 (UPI) -- A new report accuses the General Motors Acceptance Corp. of discrimination against African Americans by charging them higher interest rates on loans.
The Washington Post said the analysis indicated black Americans were nearly three times as likely as whites to be charged markups on GMAC loans.
The report, included in a lawsuit filed against the nation's second-largest automobile loan maker, said black borrowers paid an average of $1,229 in extra interest over the life of their GMAC loans, compared with the average of $867 paid by whites.
Vanderbilt University Business Professor Mark Cohen, who conducted the survey of more than 1.5 million GMAC loans, said he found black postal workers paid an average of $811 more than white postal workers to get car loans, while black teachers paid an average of $595 more than white teachers. Even black GM employees paid more than their white counterparts.
Cohen said the disparate impact against African-Americans could not be explained by creditworthiness or other legitimate business factors.
The Post reported GMAC officials declined comment, saying the company was reviewing the report.
