Maryland – The Department of Justice filed a lawsuit today alleging that defendant Guaranteed Auto Sales, a used car dealership, along with its owner and manager, defendants Kelly Ann West and Robert Chesgreen, violated the federal Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars in Glen Burnie, Maryland. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices.
The complaint, which was filed in the U.S. District Court for the District of Maryland, alleges that defendants engaged in a pattern or practice of discrimination by offering less favorable auto loan terms to African American testers than white testers. Most significantly, the complaint alleges that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments.
“Using race as a factor in determining credit terms, including the amount of down payment that a customer must pay, is despicable and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “By filing this lawsuit, the Justice Department is acting to ensure that all individuals are treated equally regardless of their race as they seek information about auto financing terms and apply for credit.”
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