The lending arm of Honda Motor Co., America Honda Finance Corp.,
has just revealed in a recent public filing that the U.S.
Department of Justice and the Consumer Financial Protection Bureau
have authorized an enforcement action against the company for
violations of law arising out of its indirect lending
practices. Honda stated that the CFPB and DOJ "have
indicated that they are seeking monetary relief and implementation
of changes to our discretionary pricing practices and
policies." Honda further advised that it has cooperated
with the agencies' investigation and hopes to achieve "a
mutually satisfactory resolution."
Honda's filing also pointed out that the actions of the CFPB
and the DOJ are part of a broader federal inquiry into whether auto
lenders charge higher interest rates to minorities. In fact,
Honda is the second significant auto lender to announce
this week an ongoing investigation into its indirect lending
practices by the CFPB and DOJ. A third
