>DaimlerChrysler Discrimination
Date Filed: February 3, 2003
Court: U.S. District Court
Location: Illinois
Ticker Symbol: DCX

Hagens Berman represents customers who were rejected financing in a proposed class action lawsuit accusing DaimlerChrysler's financing subsidiary, Chrysler Financial 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.

February 25, 2004 - In a similar case where two Chicago car dealerships are suing Chrysler over alleged redlining practices, Judge Wayne Andersen denied Chrysler's motion for summary judgment, striking down arguments that Chrysler Financial was not subject to the Automobile Dealers' Day in Court Act or the Illinois Motor Vehicle Franchise Act.

In the past, Chrysler depended on these arguments to limit dealerships ability to seek redress for wrongs committed against dealerships, and the ruling opens the door for suits from dealerships around the country. For more information, read the court ruling.

January 28, 2004 - Two recently unsealed depositions from Chrysler executives give even more evidence that top Chrysler executives often used racial slurs and derogatory remarks, and held racist attitudes that may have weighed in their decisions to finance cars, according to published reports.

Read the article from the Chicago Tribune or from the Chicago Sun-Times on the depositions.

March 25, 2003 - Attorneys expanded the proposed class-action lawsuit to include Hispanic car purchasers living near Chicago, after other minorities came forward with similar experiences.

"Since we filed the original complaint against Chrysler earlier this month, we've learned of other areas in which we believe that Chrysler has thrown the switch on what Chrysler claims is a color-blind credit-rating system," said Steve Berman, managing partner of Hagens Berman. "As we learn more about the case, it is becoming clear that Chrysler's actions in Chicago are not limited to one area, or one minority group."

Read more in the Press Release

March 10, 2003 - Hagens Berman released part of an internal manual showing that Chrysler has the ability to divert applications from its automated credit approval system, setting them aside for manual review. The existence of this disabling switch calls into question Chrysler's claims of a colorblind credit approval system.

Among other technical instructions regarding Chrysler's automated credit approval system, the document describes how to set Automated Decision Eligibility for a dealership. If this option is marked 'No,' all credit applications from a particular dealership will be diverted from the ACE system for manual review.

According to the suit, this diversion is the first step in Chrysler's redlining of predominately black neighborhoods.

For more information:

February 3, 2003 Press Release
Current Complaint
Questions & Answers
Timeline of Events
From plaintiff Jerrell Coburn...
From plaintiff Vanessa Dampeer...
Complete Information Kit

Click here to contact Hagens Berman about this suit.

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.

The suit claims Chrysler has denied financing to creditworthy black applicants at two Chicago-area dealerships since at least April 2001. In September of 2002, Chrysler began denying all credit applications from the Marquette dealership, and continues to deny financing to the dealership, the complaint states.

The suit also 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.

Corroborated by several witnesses and detailed in the complaint, two separate Chrysler zone managers charged meetings with racial slurs and extremely derogatory comments such as:

  • "We found out these 'mulignons' [a derogatory racial slur] were getting [sales contracts] bought and [financing] approved by Chrysler when they should be standing on the bus. And if it weren't for Rosa Parks, those niggers would still be standing in the back of the bus." (par. 77)
  • "My whole office knows that I don't buy nigger paper." [Meaning: My whole office knows that I don't provide financing for black customers.] (par. 78)
  • Now you can see why I don't buy [financing for] mulignons." (par. 94)

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.