honda financial services customer service is the auto financing division of American Honda Motor Company. It offers auto loans, auto leasing, service contracts, insurance and other related products and services. The company serves customers worldwide. Honda Financial Services has over 8,000 employees and is headquartered in Torrance, California.

The Department of Justice and the Consumer Financial Protection Bureau today announced a historic settlement with Honda to resolve claims that the company violated the Fair Housing Act and the Equal Credit Opportunity Act by discriminating against thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers in its auto lending business. Under the terms of the settlement, Honda will pay $24 million to a fund that will be administered by an independent administrator to locate and compensate affected consumers. Honda also will agree to improve its monitoring and compliance systems.

Honda is an indirect auto lender, which means that it does not take applications directly from consumers but instead makes most of its loans through car dealers. As part of its business practice, Honda sets a risk-based interest rate, known as the buy rate, that it conveys to car dealers. The dealer can then vary the interest rate when finalizing a deal with a consumer, and it can earn additional compensation if it includes a higher markup that is based on objective credit-related factors.

The United States’ complaint alleged that, between January 2011 and July 14, 2015, Honda allowed its dealers to charge African-American, Hispanic, and Asia and Pacific Islander borrowers higher dealer markups than non-Hispanic white borrowers, without regard to the borrower’s creditworthiness. As a result of this discriminatory pricing and compensation structure, the average victim was obligated to pay $150 to $250 more over the life of the loan than they would have paid under a comparable, non-discriminatory loan.

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