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Suit Against Chrysler Levels Charges of Redlining, Discriminatory Lending Practices Directed at Blacks in Chicago Area.

Article Excerpt
CHICAGO -- CHICAGO, Feb. 3 /PRNewswire/ -- A group of customers today filed a class- action lawsuit against DaimlerChrysler's (Chrysler) financing subsidiary accusing the company of denying credit to customers in the Chicago area based on race, and repossessing vehicles of customers living in predominantly black neighborhoods without justification or proper notification.

The suit claims Chrysler management systematically and intentionally denied low-interest vehicle financing to creditworthy blacks in two Chicago neighborhoods, based on the neighborhood in which they lived and the dealership they selected to purchase the car. The suit also contends that the practice continues today in the Chicago area and Chrysler's Illinois sales zone.

Filed in U.S. District Court in Illinois on behalf of six black purchasers of Chrysler vehicles, the suit seeks to represent all people of color in Chrysler's Illinois sales zone who have been denied financing from Chrysler despite their creditworthiness.

The suit names DaimlerChrysler Services North America, LLC, d/b/a Chrysler Financial Company, LLC, a wholly owned subsidiary and captive financing arm of DaimlerChrysler, as the defendant.

The suit describes meetings between Chrysler and its dealerships in which Chrysler executives disclosed -- using racist slurs and derogatory comments -- that Chrysler did not want to finance car purchases by blacks, claiming they are inherently higher credit risks.

"We intend to show that Chrysler is using race in a most repugnant...