Car Lot Accused Of Predatory Lending Practices Against Black People

North Carolina Car Lot Accused Of Predatory Lending Practices Against Black People

More than a few “Buy Here, Pay Here” car dealerships in North Carolina have some explaining to do as they have recently been accused of engaging in predatory lending practices targeting African-American customers.

via CBS Local

Federal and state prosecutors are suing the owners and operators of “buy-here, pay here” used-car dealerships in Charlotte, saying they engaged in predatory lending practices against black customers.

The U.S. Department of Justice announced Monday that the lawsuit was filed by its office, the U.S. Attorney’s Office for the Western District of North Carolina and the N.C. Department of Justice.

Their lawsuit alleges that defendants Auto Fare Inc., Southeastern Auto Corp. and Zudhi A. Saadeh violated federal law by intentionally targeting black customers for unfair and predatory sale terms.

Prosecutors also said Saadeh has used racial slurs to refer to blacks and made statements saying blacks have fewer credit options, making them more likely to accept the predatory contracts.

The complaint also alleges that the defendants failed to provide customers with a reasonable notice of repossession, repossessed vehicles from customers who were not in default and failed to give customers refunds they were due.

An attorney for Saddeh said Monday her client denies the allegations.

What’s done in the dark….

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