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Disparate Impact and Auto Sales



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I had an op-ed in the Wall Street Journal this week (behind a paywall) that catalogues and critiques the Obama administration’s aggressive use of the disparate-impact approach in civil-rights enforcement. Well, here’s another to add to the list: The Consumer Financial Protection Bureau is reportedly warning banks that a policy of allowing auto dealers to negotiate loan interest rates (a.k.a. APRs) with retail buyers has an illegal disparate impact.



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