Honda Financial Services Customer Service Settlement

Honda Financial Services is a wholly owned subsidiary of American Honda Motor Co. and provides financing for the purchase of new or used Honda or Acura vehicles. Its finance operations include retail installment sales contracts and leases of vehicles, as well as vehicle service contracts and other automotive-related products. Honda Financial Services also sells power equipment such as lawn mowers and motorcycles, and provides automotive parts and accessories, including replacement parts for both cars and trucks.

The company is one of the world’s leading auto manufacturers, and its finance operation is the largest in North America. The company also serves as the primary credit provider for the sale of Honda and Acura vehicles through automobile dealers. The company is located in Torrance, California.

In a settlement with the Department of Justice and Consumer Financial Protection Bureau (CFPB), Honda agreed to pay $24 million for violations of the Equal Credit Opportunity Act involving alleged discrimination against thousands of African-American, Hispanic, and Asian/Pacific Islander auto loan borrowers. The company violated the law by allowing auto dealers to charge markups on borrowers’ interest rates that were not based on their objective credit-related factors, such as creditworthiness. This practice resulted in the average African-American victim being obligated to pay more than $250 more over the term of their loan, and the average Hispanic and Asian/Pacific Islander victims paid more than $150 more. The company also agreed to limit dealer markups and provide an administrator to locate, contact, and distribute compensation at no cost to borrowers whom the department and the CFPB identify as being victims of the discrimination. honda financial services customer service

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