Ally Financial to Pay $98 Million For Discriminatory Auto Loans

In the largest settlement of any auto-loan discrimination case, Detroit-based Ally Financial has agreed to pay $98 million in fines and damages after regulators discovered discriminatory auto loan practices by its dealerships.

Ally Financial, formerly GMAC, has settled regulatory claims by the Department of Justice and the Consumer Financial Protection Bureau (CFPB). The claims said African-American borrowers were being charged an average of $300 more than their non-Hispanic white counterparts for their auto loans. Hispanics paid about $200 more.

In March 2015, the CFPB announced it would begin regulating non-bank auto lenders like Ally. These lenders make up 40 percent of the auto-loan market, lending to over 7 million consumers every year. The goal of the regulation was to crack down on “dealer financing” - where the car dealers act as middlemen between the buyer and the lender.

In Ally's case, the lender arranged loans through its dealers who were allowed to quote higher rates to their customers beyond what their credit history would indicate. Because Ally Financial did nothing to keep its dealers from charging minority buyers higher rates, it was responsible for the costs charged to its 235,000 minority consumers.

Because of its discriminatory auto loan policies, Ally Financial has agreed to pay $98 million in fines and consumer costs. Of that amount, $80 million will go to African-American, Hispanic, and Asian Americans, and Pacific Islanders who got auto financing through Ally Financial between April 2011 and December 2013.

The team at The Liblang Law Firm, P.C., are ready to take your calls about Ally Financial's discriminatory lending practices. The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against minorities in its loan applications and lending rates. Consumers whose rights are violated can sue the lender directly.

The Liblang Law Firm, P.C., has also represented consumers in “yo-yo lending” cases – where a dealer delivers a vehicle to the consumer, leading him or her to believe their loan has been approved, only to demand it back a week or so later because the “financing fell through.” Michigan law requires dealers to honor a consumer's written contract, even if they are later unable to sell the financing contract to the anticipated lender. If the dealer cancels the contract or tries to raise the rate, the consumer may have a case against the lender.

Dani K. Liblang at The Liblang Law Firm, P.C., is a consumer protection attorney with over 30 years' experience. If you have been harmed by Ally Financial's discriminatory lending policies, she may be able to help you file your claim. Contact the Liblang Law Firm, P.C., to find out if you you qualify.

FCC Tightens Protection Against Robocalls

The U.S. Federal Communications Commission is tightening restrictions that prevent telemarketers from using robocalls and automatic dialers to reach consumers. This could open the door for class action lawsuits against auto-dialing companies.

Cell Phone Providers to Pay for Cramming Schemes

Have you ever gotten horoscope readings, sports scores, or medical alerts texted to you? Did you pay for them? If so, you could see a credit on your cell phone bill. These "cramming" schemes recently resulted in two nationwide settlements that could put money back in your pocket.

Safety Administration Calls Out Fiat Chrysler

The National Highway Traffic Safety Administration has called Fiat Chrysler to appear at a public hearing tomorrow, July 2, 2015, to address safety concerns. The administration says the Michigan auto maker didn't issue recalls fast enough to address key safety issues.

The NHTSA is in charge of monitoring automotive manufacturers selling cars in the United States to make sure they build their cars safely and respond to reports of defects appropriately. But according to the NHTSA, Fiat Chrysler hasn't done either. According to a public notice released ahead of tomorrow's hearing:

"NHTSA has tentatively concluded that Fiat Chrysler has not remedied vehicles in a reasonable time and has not adequately remedied vehicles."

At the public hearing, Fiat Chrysler will have to answer how it met its duty to send vehicle owners notice of safety issues and recalls. At issue are 22 safety campaigns, including 20 different recalls applying to 11 million vehicles. The recalls cover everything from ignition switches to fuel tanks, air bags to axles. Some of the safety issues could affect the way Fiat Chrysler vehicles steer, brake, and handle.

This isn't the first time that the NHTSA has called Fiat Chrysler out for safety issues. After the administration sent the automaker 12 pages of questions earlier this year, Fiat Chrysler provided over 5 million pages of safety documents. The manufacturer asserts that this documentation eliminated the need for any hearing. According to Fiat Chrysler spokesperson Eric Mayne:

"The initiatives described in our response to NHTSA's Special Order reflect a deep commitment to thorough investigation and the timely remedy of safety defects. . . . While this commitment has helped FCA US LLC achieve positive results, we will not be satisfied until we firmly re-establish the trust our customers place in us."

But the mountain of documents does not explain why Fiat Chrysler failed to notify owners of safety concerns within the 60 day window provided by the NHTSA. In one case, notices in an air bag recall were over five months late. In at least 2 recalls, notices have yet to go out at all.

If the NHTSA isn't satisfied with Fiat Chrysler's responses at the Washington hearing scheduled for 10:00 a.m. tomorrow, the administration could require the automaker to pay over $700 million in fines and to replace or buy back defective vehicles.

By failing to provide prompt recall notices to its auto owners, Fiat Chrysler put millions of drivers at risk. Accidents caused by these defective vehicles could cost motorists thousands of dollars, and even their lives.

Attorney Dani K. Libliang of The Liblang Law Firm, P.C., is an auto accident attorney with a passion for protecting the victims of automotive defects. If you or someone you know has been in a serious auto accident, contact The Liblang Law Firm, P.C., today for a free consultation.

Give Graduates the Gift of Financial Advice

It's the season for high school graduation parties. Those recent graduates are making big decisions about how to pay for college. The Consumer Financial Protection Bureau has tools to help.

FTC Says Michigan Dealership Laws Hurt Consumers

Even though the Big 3 were born in Detroit, Michigan residents can't buy cars directly from car companies. Instead they have to go through dealerships. But the FTC says that Michigan's dealership protection laws are anti-competitive and could hurt consumers.

Dani K. Liblang Added to National Trial Lawyers' Top 100

There are few honors higher than being invited to join the National Trial Lawyers' Top 100. Attorneys on that list represent the best in the nation – you simply can't hire anyone better. Now consumer protection attorney Dani K. Liblang is joining the ranks of this prestigious organization.

The National Trial Lawyers is a professional organization made up of the best trial lawyers from across the country – representing everyday people in plaintiff's civil litigation and criminal defense. According to Executive Director Michelle Swanner,

“It is the mission of The National Trial Lawyers association to promote excellence in the legal profession through practical educational programs, networking opportunities, and legal publications that deal with current issues facing The Trial Lawyer.”

And the Top 100 are the best of the best. Selection is based on nomination by fellow lawyers and third-party research. An invitation to join is extended only to the most qualified attorneys from each state based on their qualifications of “leadership, reputation, influence, stature and public profile.” According to the National Trial Lawyers: Top 100 website,

Each of our distinguished Top 100 members possesses the knowledge, skill, experience and success held by only the finest and best lawyers in America. By combining resources, power, and influence, The National Trial Lawyers: Top 100 is devoted to preserving and protecting justice for all.

That is why it is such an honor that the National Trial Lawyers have invited Attorney Dani K. Liblang to join their Top 100 for Michigan. Liblang has always had a passion for fighting for the average Joe consumer. For over 30 years, she has focused on lemon law, auto accident claims, and in fighting creditors in consumer protection lawsuits. Cases she has won for her clients have literally changed the industry – giving consumers the legal ground to fight large corporations who put defective products up for sale.

Her hard work on behalf of her clients has earned her a great reputation across Michigan, and the nation. Dani K. Liblang is one of Michigan's only consumer protection lawyers to receive the highest AV rating from Martindale-Hubbell, and to be certified in trial advocacy by the National Board of Trial Advocacy. She has been the chair of the State Bar of Michigan's Consumer Law Section on two separate occasions, and in 2002, Liblang was awarded the “Consumer Hero Award” by the National Association of Consumer Advocates.

Even with all these awards, Dani K. Liblang is still deeply touched by the invitation to join the National Trial Lawyers' Top 100:

As of 2014, Michigan has 34,739, licensed attorneys, so to be invited as one of the top 100 Michigan trial lawyers, feels like quite an honor. It also feels great to be invited to a join a group of lawyers dedicated to preserving justice and who are not afraid to call themselves “trial lawyers.” Every day, trial lawyers are on the front lines, standing up for ordinary citizens who have been injured or abused, discriminated against, or who have suffered economic injustice. I’m very humbled and proud to be part of this prestigious organization. 

She and her staff have worked hard to deserve this honor, and continue to bring their best to every one of their clients. If you want one of the National Trial Lawyers' Top 100 attorneys in Michigan in your corner, contact The Liblang Law Firm, PC, for a free consultation today.