Honda to pay $25M to settle discriminatory lending allegations

Honda's U.S. financing division will pay $25 million to resolve allegations the company overcharged minority buyers with higher interest rates on vehicle loans, federal officials said Tuesday.

According to USA Today, American Honda Finance agreed to offer $24 million in relief to thousands of black, Hispanic and Asian and Pacific Islanders who paid higher rates on loans than white borrowers. While Honda denied it practiced discrimination, the settlement brings an end to allegations that since January 2011, it charged the higher rates to minorities without regard to their credit records.

The company also agreed to pay $1 million to a consumer financial education program fund.

Read more from USA Today.