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GMAC Reaches Tentative Settlement

From Bloomberg News

General Motors Acceptance Corp., the financing arm of General Motors Corp., reached a tentative settlement of a class-action suit that claims its lending practices discriminate against blacks.

Under the agreement, GMAC would change its policies on how much dealers could mark up interest rates, said GMAC and Wyman Gilmore, lawyer for the plaintiffs.

The suit claims dealers charge black customers higher interest on car loans than white customers, adding an average of $350 to the cost of a car.

General Motors wouldn’t pay damages under the settlement, Gilmore said.

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