Sentence examples for markup practice from inspiring English sources
Class-action lawsuits filed in recent years allege that the markup practice turned into illegal discrimination as dealers set higher interest rates on loans to minorities.
The lawsuits, like similar cases filed in recent years against other auto dealers, ask the courts to bar the dealer markup practice and reimburse consumers for discriminatory practices in the past.
Now this markup practice is coming under legal attack in at least five states, a joint investigation by The New York Times and ABC News "20/20" has found.
Since the markup practice tends to result in overcharging borrowers of color, the CFPB recommended that banks and dealerships ditch the practice.
The CFPB said that banks could continue the markup practice if they took steps to ensure that they would not regularly overcharge borrowers based on race or national origin.
Although gray market sales of products for a markup ― a practice referred to as "daigou" in China ― have been documented, experts say the allegations would point to wrongful stereotyping if true.
"Many banks say that what's defined by the Financial Industry Regulatory Authority as fair market practice, such as rules prohibiting excessive markups, does not apply to interest rate swaps," he says.
The suits against Honda are the latest for the auto industry involving dealer markups on loans, a practice in which car dealers add percentage points to the loan rates offered by finance companies.
Following the tour, the band brought a lawsuit against Ticketmaster that accused them of being a monopoly whose anticompetitive practices allowed markup prices of more than 30%.
The dealers and lenders named as defendants in those cases, which include the Bank of America and the Ford Motor Credit Company, described dealer markup as a legitimate business practice that in no way misleads or defrauds consumers.
They just copy other sellers' lists and then buy the books as necessary, pocketing the markup (though none acknowledge the practice, since it is banned on most commercial sites).
