Last week, the FTC put an end to a New York auto dealer’s discriminatory lending practices as the FTC brought its first Equal Credit Opportunity Act (“ECOA”) case in over ten years. Notably, two Commissioners are now calling for new rules to help further fight deception in the auto finance market. According to both Commissioners, this was the FTC’s first case alleging ECOA violations since the passage of the Dodd-Frank Act, which was signed into law July 21, 2010. ECOA prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, or age, or because someone gets public assistance.

On May 21, 2020, the FTC filed a Complaint for Permanent Injunction in the United States District Court for the Southern District of New York against Liberty Chevrolet, Inc. and its general manager, Carlo Fittanto, for allegedly violating the FTC Act, the Truth in Lending Act, and the ECOA. According to the Complaint, Defendants directed employees to charge higher interest rates and inflated fees in credit transactions to African-American and Hispanic customers. In addition, Defendants allegedly inflated costs, changed sales prices, and double-charged consumers for taxes and fees.