FTC Trims Protections Against Credit Discrimination in Auto Deals

The FTC signed settlements with Passport, Coulter Motor Company, and a former manager to drop parts of court orders meant to prevent unlawful credit discrimination in auto lending, and did not notify courts or coplaintiffs. The removed provisions would have banned race- or ethnicity-based pricing and required ongoing fair-lending training. Critics say the move undermines consumer protections and could enable discriminatory practices, while the FTC says it is moving away from disparate-impact theory in enforcement amid AI-driven lending shifts.