Settlement reached with discrimination case involving interest rates

Los Angeles, CAA California bank has settled a racial discrimination lawsuit with federal prosecutors after being accused of charging non-Asian customers a higher interest rate on loans.

span itemprop="image" itemscope itemtype="https://schema.org/ImageObject" style="display:block">Nara Bank has agreed to pay up to $410,000 to the customers who were allegedly overcharged and will also invest at least $100,000 per year in programs that further consumer financial education, the Associated Press reports.

However, there is still an ongoing discrimination case involving two auto dealerships who were reportedly charging a higher interest rate on loans for non-Asian customers.

The U.S. Justice Department stated that the case involving Union Mitsubishi and Han Kook Enterprises has yet to be resolved.

"Every individual deserves the comfort of knowing they can pursue credit without fear of discrimination based on their race or national individual," Loretta King of the DOJ's civil rights division, told the Los Angeles Daily News. "Our nation's civil rights laws were created to combat this kind of discrimination."

According to the lawsuit, many of the customers who were allegedly overcharged on their loan's interest rates were Latino.