Local auto dealers to repay $458,000 to black customers

Two car dealerships in the Philadelphia region will repay nearly $458,000 to black customers who the federal government alleges were charged higher interest rates than white borrowers.

The Ford dealerships did not admit discrimination or wrongdoing in settlements filed in federal court in Philadelphia.

Under the consent orders, Pacifico Ford in Philadelphia will pay up to $363,166, plus interest, to black consumers who were charged higher interest rates on car loans than white buyers. Springfield Ford in Delaware County will pay up to $94,565, plus interest.

The Justice Department accused the dealerships in separate complaints of violating the Equal Credit Opportunity Act between 1999 and 2002.

"Racial discrimination in lending is wrong and will not be tolerated," Wan J. Kim, assistant attorney general for the civil rights division, said in a statement.

David Ogden, a Washington-based attorney for the dealerships, today referred a reporter to the consent orders, which state any alleged violations were unintentional and that the dealers were working to address the issue.

Officials could not immediately say how many customers were affected by the settlement.