For new and used car purchases financed through GMAC for a period of sixty
(60) months or less during the next three years, the markup dealers may charge
over the rate determined by a borrower’s creditworthiness may not exceed
2.50%.
For new and used car purchases financed through GMAC for a period of more
than sixty (60) months during the next three years, the markup dealers may
charge over the rate determined by a borrower’s creditworthiness may
not exceed 2.00%.
Preapproved Loan Program
GMAC will institute a diversity marketing initiative designed to generate
1,250,000 pre-approved “no markup” offers of credit to African
American and Hispanic new and used car buyers.
GMAC will make at least 250,000 of such offers per year over the next five
years, with a priority to members of the Class certified in the case, defined
as all Black and Hispanic consumers who entered standard rate contracts with
GMAC since May 10, 1989.
Recipients of the pre-approved “no markup” offers of credit
will be informed of the specific interest rate they are eligible for based
solely on their creditworthiness. They also may be notified of any special
annual percentage rate (APR) programs they may be eligible for. The offers
will be good for at least thirty days at any GM dealership.
Consumer Education
GMAC will contribute $1.6 million toward consumer initiatives undertaken
by non-profit organizations for the purpose of improving the education of
and/or assisting Black and Hispanic consumers with respect to issues of credit
financing.
Recipients of consumer education and assistance grants include the National
Council of La Raza, the Rainbow/PUSH Coalition, and the National Legal Aid
and Defender Association. Sub-grants will be provided to the Black America
Saves and Hispanic America Saves Initiatives of the America Saves program.
Disclosure
GMAC will provide written disclosures on GMAC financing contract forms that
inform consumers that the annual percentage rate quoted by the dealer may
be negotiable and that the dealer may receive a part of the Finance Charge.
GMAC is not paying any compensatory damages to the Class Representatives and
Class Members. Class Members are not releasing any claims for monetary relief
that they might have against GMAC and they may pursue any such claims individually.
For further information concerning the settlement in Coleman v. GMAC, please
refer to the GMAC Settlement Agreement and the Frequently Asked Questions section
appearing on this website.
Copies of all of the relevant settlement documents and disclosures in the Coleman
v. GMAC case can be found at the official settlement website established by
Order of the Court at www.ecoa-settlement.com
and NCLC