Judge: Ford Affiliate Charged Blacks More
(cont'd)

"We uphold the highest standards of fair lending. We do not believe the record in the case supports any finding of discrimination," Libbey wrote.

Lead plaintiff lawyer Clint Watkins said he was pleased with Trauger's comments.

"We look forward to working with Ford Motor Credit on a solution," he said.

The data used in the lawsuit was from 2001 and 2002, but Watkins said during the trial that discriminatory car loan practices have been common since the 1950s.

Since 1998, there have been several lawsuits filed against auto financing companies, alleging discrimination against blacks. Those suits have resulted in five out-of-court settlements. The class-action suit against Primus was the first to go to trial.

The settlements in other cases have included the companies placing caps on the interest rate markups that dealers can make to loans and establishing "affirmative lending" programs for minority customers.

Marking up a loan is a practice in which dealers add percentage points of interest to a loan and, in agreement with the finance company, get to keep most of the extra interest money.

In closing arguments Wednesday, Primus attorney Tom Byrne said the plaintiffs had sued the wrong people and should have targeted auto dealers. "Primus has no control over dealers in setting markups," Byrne said. "That fact towers over all others in this case."

Ford shares fell 32 cents to close at $11.91 on the New York Stock Exchange.

 

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