JPMorgan, DOJ Engaged in Discussions About 'Potent Statistical Disparities'
February 25, 2015
NEW YORK — In a regulatory filing Tuesday, JPMorgan Chase revealed that it is engaged in discussions with the U.S. Department of Justice about “potential statistical disparities” in the markups on auto loans charged to car buyers of different ethnicities.
JPMorgan said it is having the discussion about rate markups on loans originated by car dealers and purchased by the firm, but did not disclose whether it was the target of an investigation by the regulator.
Several other finance sources have been subpoenaed by the DOJ in recent months related to their subprime lending practices, including Santander Consumer USA, GM Financial, Credit Acceptance Corporation, Ally Financial and Consumer Portfolio Services. The regulator has also paired with the Consumer Financial Protection Bureau (CFPB) on possible enforcement actions against captive finance companies Toyota Motor Credit Corp. and American Honda Finance Corp. The regulators have alleged that both of the captives have allegedly engaged in practices that resulted in minorities paying more for auto loans.