The Federal Trade Commission (FTC) said on Tuesday that it is distributing more than $1 million in refunds to customers affected by car dealer Rhinelander Auto Center’s alleged discriminatory practices and junk fees.
The refund resulted from a complaint filed by the FTC and the State of Wisconsin in October last year, which alleged that Rhinelander and its general manager had discriminated against American Indian customers by charging them higher financing costs and fees, including a “markup” to their interest rates that resulted in their paying approximately $401 more in interest payments compared to non-Latino white customers.
The company was also accused of deceiving customers by charging them junk fees without their consent. About half of Rhinelander’s customers reported being charged for add-ons without their knowledge, according to the complaint….