FTC Refunds More Than $1 Million to Customers for Discrimination by Rhinelander Auto Center

The Wisconsin dealership group faced accusations of unfairly raising interest rates for American Indian customers. The Federal Trade Commission (FTC) announced a refund of over $1 million to customers impacted by Rhinelander Auto Center’s discriminatory practices and junk fees. The complaint alleged that American Indian customers were charged higher financing costs and fees, resulting in them paying $401 more in interest compared to non-Latino white customers. Additionally, customers reported being charged for add-ons without their knowledge, including vehicle service contracts and insurance. The FTC stated that a consumer was deceived into paying for unauthorized insurance, costing her over $1,000 in fees. The refund will be distributed among 7,531 consumers, with recipients advised to cash their checks within 90 days. As part of the settlement, Rhinelander must implement a fair lending program and limit additional interest markup. Despite denying the allegations, Rhinelander agreed to a resolution to avoid lengthy litigation and affirmed its commitment to treating all customers with dignity. The company stated that the settlement includes no admission of wrongdoing and expressed relief at moving forward from the issue.

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