Honda's finance arm paying out for discrimination

A sign is shown over the O'Hare Honda car dealership in Des Plaines, Ill.
Getty Images
A sign is shown over the O'Hare Honda car dealership in Des Plaines, Ill.

A U.S. auto finance arm of Honda Motor will pay $24 million in restitution over allegations that its loan pricing practices caused minority customers to pay higher interest rates than white borrowers did, U.S. regulators said on Tuesday.

The U.S. Consumer Financial Protection Bureau and Department of Justice said American Honda Finance Corp also would change its pricing and compensation system to reduce the potential for discrimination.

Read MoreHonda refreshes Civic with new design