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By WILLIAM BENDER

From The Philadelphia Daily News

At Springfield Ford in Delaware County, “You ALWAYS get more for your dollar,” the car dealer claims on its Web site.

That’s unless, according to U.S. Attorney Pat Meehan, you happen to be black.

The Justice Department announced yesterday that Springfield Ford, and Pacifico Ford in Philadelphia, have agreed to pay a combined $450,000 to African-American customers to whom they allegedly charged higher interest rates on car loans because of their race.

“This type of practice is a serious violation of the law and an insult to the consumer who is entitled to conduct business without fear of discrimination,” Meehan said in a statement, calling the practice “intolerable.”

The civil complaints filed in Philadelphia federal court allege that the dealerships engaged in discriminatory lending practices between 1999 and 2002 by jacking up the interest rate for black customers — a violation of the Equal Credit Opportunity Act.

The differences in the interest-rate markup – a finance charge dealers add to the rate set by the lender – “cannot be explained fully by factors unrelated to race, such as differences in the consumers’ creditworthiness or by differences in the down-payment amounts provided by consumers,” according to the complaints.

“Racial discrimination in lending is wrong and will not be tolerated,” Wan J. Kim, Assistant Attorney General for the Justice Department’s Civil Rights Division, said in a statement.

Representatives for Springfield Ford, located on Baltimore Pike, and Pacifico Ford, on Essington Avenue in Southwest Philadelphia, could not be reached for comment last night. Both companies have agreed to change their markup policy to prevent future discrimination, the department said.

The state attorney general’s office is pursuing separate agreements with the dealerships.

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From Associated Press
Ford Recalling 3.6 Million Vehicles
By Ken Thomas, Associated Press Writer
 
Ford Recalling 3.6 Million Vehicles to Deal With Concerns About Faulty Cruise Control Switch

WASHINGTON (AP) — Ford Motor Co. said Friday it is recalling 3.6 million passenger cars, trucks, sport utility vehicles and vans to address concerns about a cruise control switch that has led to previous recalls based on reports of fires.

Ford said the recall covered more than a dozen vehicle models built from 1992-2007. The company said it was responding to concerns from owners about the safety of their cars and questions about the speed control deactivation switch in the vehicles that is powered at all times.

The Dearborn, Mich.-based automaker previously had recalled nearly 6 million vehicles beginning in January 2005 because of engine fires linked to the cruise control systems in trucks, SUVs and vans.

“Customers remain concerned about the long-term durability of the speed control system and about the safety of their vehicles,” said Ford spokesman Dan Jarvis.

He said the automaker had received “a few reports of fires” in Ford Crown Victoria passenger cars prior to the recall. He did not have a precise number.

The recall involves the following vehicles: 1998-2002 Ford Ranger, 1992-1997 Lincoln Town Car, 1992-1997 Ford Crown Victoria, 1992-1997 Mercury Grand Marquis, 1993-1998 Lincoln Mark VIII, 1993-1995 Taurus SHO, 1999-2001 Ford Explorer and Mercury Mountaineer.

Also covered are the 2001-2002 Ford Explorer Sport, 2001-2002 Ford Explorer Sport Trac, 1992-1993 E150-350 vans, 1997-2002 E150-350 vans, 1993 Ford F-Series pickups, 1993 Ford Bronco, 1994 Mercury Capri, 2003-2004 Ford F-150 Lightning, and 1995-2002 Ford F53 motor homes.

An additional 177,000 vehicles in Canada, Mexico and Europe are covered by the recall.

Jarvis said there have been no deaths, injuries or accidents associated with the recall.

It was Ford’s sixth recall, involving a total of more than 10.4 million vehicles, conducted since 1999 because of problems with the speed control system, according to the National Highway Traffic Safety Administration.

The nation’s largest single recall involved 7.9 million Ford vehicles in 1996 to replace an ignition switch.

Texas Instruments Inc. supplied the speed control switch in all of the vehicles covered under Friday’s announcement, Ford said. A TI spokeswoman could not immediately comment.

Owners will begin receiving recall notices on Aug. 13. Jarvis said the parts for passenger cars would not be available until early October. In the meantime, owners can take their vehicle to a dealer to have their cruise control deactivated until the parts arrive. The parts are available for trucks, Jarvis said.

Dealers will install a fused wiring harness into the speed control electrical system or replace the deactivation switch if its found to be leaking.

Owners with questions about the recall can contact Ford at (888) 222-2751.

Ford Motor Co.: http://www.ford.com/

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