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Honda finance to pay $24M for discriminatory lending practices

Honda has found itself in hot water in the United States over allegations of discriminatory lending practices. However the Japanese automaker's American subsidiaries are taking actions to not only alter its practices, but compensate the victims of such past discrimination. According to the Consumer Financial Protection Bureau, some Honda dealers were found to have offered less preferential loans to customers of African-American, Hispanic, Asian, and Pacific Islander ethnicities than they have offered to white customers, irrespective of their individual financial situations. The American Honda Finance Corporation has allowed dealers to mark up individual loans by two percent or more, depending on the length of the loan's contract, thereby opening the door for dealers to set interest rates at their discretion. And that discretion, according to the CFPB and the Department of Justice, has been applied in a discriminatory fashion, in violation of the Equal Credit Opportunity Act. Honda, for its part, refutes the allegations and maintains that its practices have not been racially or ethnically discriminatory. The company is nevertheless taking measures to address the charges. For one thing, Honda's US financial arm is reducing the amount of wiggle-room it gives its dealers to only 1.25 percent above the buy rate for short-term loans (5 years or less), and one percent for longer-term loans. It has also set up a $24-million fund to compensate victims of the alleged discrimination, coordinating with the CFPB on the dispersal of said funds. The CFPB reports that "because of Honda's responsible conduct," it is not seeking penalties to be levied against the company for the alleged discrimination. STATEMENT BY AMERICAN HONDA FINANCE CORPORATION RE: Settlement with the Department of Justice and Consumer Financial Protection Bureau Jul 14, 2015 -- American Honda Finance Corporation (AHFC) has reached an agreement with the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) that shows our commitment to work together to be part of the solution and to establish the path forward that best supports our Honda and Acura customers and dealers with clear and convenient financing options. AHFC strongly opposes any form of discrimination, and we expect our dealers to uphold this principle as well. We firmly believe that our lending practices have been fair and transparent.

Junkyard Gem: 2000 Honda Passport 4WD

The suits at American Honda Motor Company must have spent the bulk of the 1990s tearing out their hair in frustration as their rivals raked in big money from the sales of ever-more-profitable SUVs, even as American car shoppers lost interest in sedans and hatchbacks. Oh, sure, the Civic-based CR-V appeared here for the 1997 model year and sold well enough, but the lack of a larger SUV pained Honda more with each passing year. With the Acura MDX and Honda Pilot not ready for showrooms until the 2001 and 2002 model years, respectively, some stopgap had to be found. Isuzu stepped up and made a deal with Honda: the Rodeo would get Honda badges and become the Passport, while the Trooper would show up in Acura showrooms with SLX badges (for the 1994 and 1995 model years, respectively). Here's one of those Passports, found in a Denver-area self-service yard. Things got even weirder in the Isuzu/Honda world around the turn of the century, with the Honda Odyssey getting Isuzu badges and being sold as the Oasis. Fast-forward to 2009, and the only Isuzu-badged vehicles available new here were rebadged Chevrolets: the I-Series pickup (Chevy Colorado) and the Ascender (Chevy Trailblazer). The Passport name has some interesting American Honda history, stretching back to the first Honda vehicle sold here (and the biggest-selling motor vehicle in human history): the Super Cub. American Honda Motor Company couldn't use the Super Cub name on our shores, because Piper Aircraft had been selling a small plane called the Super Cub since 1949, so the motorcycle was called the Honda 50 over here. Eventually, this bike got a 70cc engine and became the Honda C70 Passport, sales of which continued through the middle 1980s. That means the Passports sitting in your local Honda dealership right now got their name from a one-cylinder motorcycle. General Motors has a Passport connection as well; when GM created the Geo brand to sell rebadged Isuzus, Suzukis, and Toyotas in the United States, it created a marque called Passport to sell the Daewoo LeMans as the Optima in Canada (all the other vehicles sold by Passport dealers were Isuzus). So, Honda's need to offer SUVs in its American dealerships led to an arrangement with GM-connected Isuzu to sell these trucks with a model name bearing links to both companies. So much history in the junkyard! Just as Geo-badged Toyota Corollas (mostly) got Delco radios, so did the Passport get Honda radios.

Honda claims another injury from Takata airbag failure

Honda has confirmed another injury caused by a faulty Takata airbag inflator in one of its vehicles. The incident occurred on March 20 in Florida to the driver of a 2003 Honda Civic, and according to Reuters, police and hospital reports indicated that shrapnel from the ruptured inflator struck the person in the neck. Honda has indicated that the owner was notified about the airbag at least four times – three of those for the driver's side. The mailings dated back as far as September 29, 2014, and as late as March 23, 2015, which was three days after the crash. The vehicle was eligible to receive new inflators on both sides. In March, Honda issued a high-profile warning to owners in newspapers and on the radio to get their cars fixed. The automaker also broadened its recall during the month to include 100,000 more vehicles, which brought the US total to around 5.5 million. So far, the faulty inflators have been linked to at least six deaths and 139 injuries. In one case, a woman in Florida has filed a lawsuit alleging that she became a quadriplegic when a piece of shrapnel in a 2001 Civic struck her in the neck, and an incident in Texas reportedly caused a man's death. Related Video: Statement from American Honda Motor Co., Inc. Re: Confirmed Rupture of Takata Airbag Inflator in Florida April 13, 2015 American Honda has confirmed that the Takata driver's airbag inflator ruptured in the crash of a 2003 Honda Civic on March 20, 2015 in Florida. This crash resulted in an injury to the driver of the vehicle. Our thoughts and sympathies are with the driver and his family during this difficult time. The legal representative of the owner involved in this incident has acknowledged in comments to media that a March 23, 2015 mailed notification was received by the owner. However, multiple mailed notices previously went to the same address, and none of these notices were returned as undeliverable. The vehicle involved in this crash is included in a recall affecting the passenger's front airbag inflator (14V-700) and a safety improvement campaign affecting the driver's front airbag inflator (14V-351), and our records indicate that neither of the necessary repairs was ever completed. American Honda has sent one mailed notice related to the passenger front inflator and three mailed notices related to the driver front inflator, the earliest of which was sent on 9/29/2014.