Consumers eligible to participate in Ally Financial’s settlement with U.S. regulators over alleged discriminatory auto lending practices could receive a payment of at least $225 from the settlement fund, according to a letter sent to a refund candidate that was obtained by Automotive News.
The letter appears to be the first indication of the estimated minimum payment consumers would receive if they are eligible. The final payment could be greater depending on how many eligible customers participate in the settlement, the letter said.
Ally paid $98 million -- $80 million in consumer compensation and $18 million in penalties -- under its 2013 consent agreement with the Consumer Financial Protection Bureau and U.S. Justice Department. Approximately 235,000 consumers may be eligible for the refund, according to the CFPB.
According to the letter, consumers, before receiving a payment, must fill out a form to confirm that they are part of a legally protected class and return the form to the Ally settlement administrator by Oct. 24.
“To be eligible [for payment], you, or at least one co-buyer on the account, must be African American, Black, Hispanic, Latino, of Spanish origin, Asian, Native Hawaiian, or other Pacific Islander and have purchased a vehicle between April 1, 2011, and December 31, 2013, that was financed by Ally,” the letter said.