Cason v. Nissan Motor Acceptance Corp.

No. 3-98-0223 (Middle D. Tenn. filed July 10, 2000) ; Clearinghouse Number: 53037

Description

Class Action Against Nissan Motor Acceptance Corporation Alleges That Credit Financing System Discriminates Against African Americans

Abstract

Plaintiffs—two African Americans—filed against Nissan Motor Acceptance Corp. a class action alleging that the corporation’s policies and practices discriminate against them on the basis of race in violation of the Equal Credit Opportunity Act, 15 U.S.C. § 1691. Plaintiffs allege that the corporation controls dealer-based financing by requiring specific forms, evaluating customer creditworthiness, establishing the buy rate, and offering financial incentives for the dealer to add unfair nonrisk finance charges to the transaction. Plaintiffs allege that defendant has notice of the discriminatory effects of its credit pricing system as a result of various automobile financing and banking industry articles in trade journals, legal proceedings by the Department of Justice, and sampling its own data. Under a 1999 sampling, the average finance charge markup for African Americans was $969.91 per contract; for whites, $506.94. Plaintiffs allege that the disparities between the terms of credit transactions involving African Americans and those of white consumers have a disproportionately negative effect on African American and other minorities. In its motion for summary judgment, defendant denied liability for the discriminatory acts of its dealerships.

Additional Information

Attorney Information
Plaintiff represented by Clint W. Watkins, Law Office of Clint W. Watkins, 5214 Maryland Way, suite 402, Brentwood, TN 37027 (615.376.7000); Michael E. Terry, Terry & Gore, 209 Tenth Avenue South, Suite 310 Cummins Station, Nashville, TN 37203 (615.256.5555); Stuart Rossman, Gary Klein, National Consumer Law Center, 18 Tremont St., Suite 400, Boston, MA 02108 (617.523.8010); Wyman O. Gilmore, Gilmore Law Office, 116 Court St., Grove Hill, AL 36451 (334.275.3115)
Docket Date
2000-07-10 00:00:00+00:00