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I see, well I still think that I can help here. How do the terrible atrocities of the past cause auto lenders of today to deny minorities loans based on racism

I see, well I still think that I can help here. How do the terrible atrocities of the past cause auto lenders of today to deny minorities loans based on racism alone and not business sense? Because attitudes take time to change, and if we didn’t know that before the resurgence of facism in places like Brazil, Italy, Austria, Hungary and other countries should reach us that. The same people who thought it was acceptable to redline, or even kill people over their race still do, they’ve just changed their language. Some of their children doubtless feel differently, others almost certainly inherent their attitudes from their parents and communities. The older generation with its concentration of wealth and influence also haven’t changed. As another person said, people are not rational.

mhuffman 8y ago
I understand, and agree with the "stickiness" of both racism and poverty, but like I mentioned above, home loans are one thing because maybe those racist people thought that "the blacks" where going to bring down their property values or make eyes at their daughters if they lived in the neighborhood. So even though it was terrible and misguided, it was rational from their warped perspective. But car loans? In 2019? It is just so baffling to me. Both why they would do it, and also why no one else at all is stepping up to get that money.
- joejerryronnie 8y ago
  Two things can be equally true - systemic racial bias is a thing and has wide-ranging effects, and it doesn’t really make sense to discriminate on issuing auto loans in 2019. I mean, regardless of your personal feelings toward someone, you’re just losing out on commission if you deny the loan. Also, it probably doesn’t matter if you think they can pay the loan back as it will just get packaged and sold several times to other institutions. There are probably other factors which weigh in more heavily than the loan processor’s person biases, e.g. the credit score system, minorities may be less willing to challenge the initial rate offered, people perhaps negotiating from a weaker position if they don’t have multiple credit options available (bank, credit union, heloc), etc.

mhuffman 8y ago

I understand, and agree with the "stickiness" of both racism and poverty, but like I mentioned above, home loans are one thing because maybe those racist people thought that "the blacks" where going to bring down their property values or make eyes at their daughters if they lived in the neighborhood. So even though it was terrible and misguided, it was rational from their warped perspective. But car loans? In 2019? It is just so baffling to me. Both why they would do it, and also why no one else at all is stepping up to get that money.

joejerryronnie 8y ago
Two things can be equally true - systemic racial bias is a thing and has wide-ranging effects, and it doesn’t really make sense to discriminate on issuing auto loans in 2019. I mean, regardless of your personal feelings toward someone, you’re just losing out on commission if you deny the loan. Also, it probably doesn’t matter if you think they can pay the loan back as it will just get packaged and sold several times to other institutions. There are probably other factors which weigh in more heavily than the loan processor’s person biases, e.g. the credit score system, minorities may be less willing to challenge the initial rate offered, people perhaps negotiating from a weaker position if they don’t have multiple credit options available (bank, credit union, heloc), etc.