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Lawsuit filed against Maryland used car dealership for allegedly engaging in illegal lending discrimination

Posted at 6:35 PM, Sep 30, 2019
and last updated 2019-09-30 18:35:15-04

GLEN BURNIE, Md. — The Department of Justice has filed a lawsuit against a Maryland used car dealership alleging that they 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 in Glen Burnie.

The lawsuit alleges that defendant, Guaranteed Auto Sales engaged in a pattern or practice of discrimination by offering less favorable terms to African American testers than white testers.

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."

According to the Associated Press, a man who answered the dealership's telephone and identified himself as Chesgreen declined to comment on Monday.