3 ms·

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

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.