Feds Sues Dealer for Bias Featured

By Staff Writer October 02, 2019

The Department of Justice filed a lawsuit alleging that defendant Guaranteed Auto Sales, a Glen Burnie, Md., used car dealership, along with its owner and manager, defendants Kelly Ann West and Robert Chesgreen, violated the federal Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars.

 

The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices.


The complaint alleges that defendants engaged in a pattern or practice of discrimination by offering less favorable auto loan terms to African American testers than white testers. Most significantly, the complaint alleges that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments. 

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Last modified on Thursday, 10 October 2019 19:18

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