African Americans Allege AmSouth Bank Engages in Credit Discrimination |
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A class action has been filed against AmSouth Bank on behalf of African Americans who alleges that its car lending unit unfairly makes more expensive loans to blacks than whites in violation of the federal Equal Credit Opportunity Act. The action seeks unspecified compensatory and punitive damages.
The action alleges that AmSouth's car lending unit charges higher interest rates on loans to black borrowers than white borrowers for reasons unrelated to creditworthiness. The markup is allegedly in the form of subjective credit pricing, and the action alleges that this subjectivity in pricing breeds discrimination. The action cites a study of AmSouth Bank loans by Vanderbilt University professor Mark Cohen that allegedly shows blacks pay AmSouth $247 more in markup on average than whites. The study also allegedly indicates that blacks are 155% more likely marked up on their loans than whites.
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Other Civil Rights Cases of Interest
Federal civil rights laws prohibit discrimination based on gender, age, race, and national origin. An Illinois class action has been filed against furniture manufacturer Northern Harvest Furniture Company on behalf of current and former Latino employees of the company who allege that they were not paid the same amounts as their non-Latino counterparts, and that some workers were fired after complaining of the inequities. A statewide collective action has been filed in Florida against Mobile Medical Staffing., LLC. The action is brought on behalf of all current and former employees, who since March 2001, were not paid proper statutory overtime for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants are required to "opt-in" to the action in order to be considered part
of the class. The employees have requested that the court issue notice to all potential class members.
A class action has been filed on behalf of renters and rental property owners in Ocean Township, New Jersey. The case alleges that the Township has enacted unreasonable and unconstitutional ordinances to reduce the number of rental property units within city limits. The plaintiffs seek to enjoin the city from enforcing these ordinances. A national class action has been filed in New York against collection specialists, JBC Legal Group, P.C. The action is brought on behalf of all U.S. residents who received alleged misleading and coercive "form" type collection letters from JBC. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.
A collective action has been filed in South Carolina against the Richland School District Two. The action is brought on behalf of all former and current employees who have worked in excess of 40 hours a week, but who have not been paid overtime by the school district. The action is brought under the federal Fair Labor Standards Act and is seeking back pay as damages. Federal credit and banking laws prohibit credit providers from discriminating based on ethnicity, national origin, or race. A class action has been filed against Ford Motor Credit Company on behalf of African American customers who allege racial discrimination in connection with the company's financing plan in violation of the Equal Credit Opportunity Act.
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