Primus Financial Services Inc. has agreed to mediation in a federal lawsuit that claims it discriminates against minority vehicle buyers. The class-action suit alleges that Primus promotes bias by letting auto dealers mark up wholesale interest rates that the lender charges. An attempt to mediate the case failed last year.
Primus' agreement to mediate the case, filed in Nashville, follows a Feb. 27 settlement in a similar case in New York against Ford Motor Credit Co. Both Primus and Ford Credit are units of Ford Motor Co.
Without admitting wrongdoing, Ford Credit agreed to cap interest rate markups at 2.5 percentage points on loans of as long as 60 months, and at 2 points on longer loans. The company also agreed to pay for consumer education and extend favorable loan terms to minority consumers.
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