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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Smith, et al. v. DaimlerChrysler Services North America (Equal Credit Opportunity Act Violation)

DaimlerChrysler settled a New Jersey federal class action lawsuit accusing its automobile financing division of having a policy or practice that resulted in African-Americans and Hispanics paying more for loans than white customers, in violation of the Equal Credit Opportunity Act (ECOA). Under the terms of the settlement, DaimlerChrysler agreed to limit the amount of markup on certain automobile loans, disclose to consumers that loan rates can be negotiated with the dealer, contribute $1.8 million for consumer education programs on credit financing directed to African-American and Hispanic communities, and offer 875,000 pre-approved, no mark up offers of credit to African-Americans and Hispanics. DaimlerChrysler also agreed to reimburse plaintiffs for attorney fees and other costs and expenses.

Misconduct Type
Consumer Affairs
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
6/17/2005
Contractors Involved Penalty
Total
Daimler AG $1,800,000
Further Information Released
Settlement Agreement 6/20/2007

Federal Contractor Misconduct Database