consumeradvocate said: Dec 11, 2008 10:05 am
American General Financial's shady, and predatory lending practices have started the landslide to its demise. In the 3rd quarter alone, American General Finance has a net net loss of $536 million, with an estimated year end loss of over $1 billion. These losses arenot a result of AIG(AGF parent company) current financial situation, but of American General Finance's upper echleon(management's …greed and corruption). As a former employee of American General Finance, we all saw it coming. Our company's former success was based on predatory and discrimantory lending practices. American General targeted inner, city blacks, hispanics, and lower-income, working class families, who had no idea how they were being ripped off. Most of the mortgages, American General Finance orginated could of been approved convential or FHA at an average rate of 6.%. American General on average charged these uneducated, consumers a rate of 15% on a first mortgage. These mortgages that were orginated, were also loaded with thousand of dollars in points and trash fees, to generate insane amounts of profits. In addition, American General particpated in insurance twisting on its consumer and mortgage loans. Instead of offering, customers standard term life policies through American General( $15/$50, 000. 15year policy. American General embedded life insurance policies, with terms of 12 months to 5 years with a face value of less than $5000.00, that were embedded in their loans. Most AGF consumers didnot realize that they were also being charged 23%apr on their insurance premiums, that were hidden in their loans. What a relief that the end is near. I couldnot sleep, a many of nites knowing that, I was involved in such criminal and unethical lending practices. May God forgive me!
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I took out loan for transmission 90 days i payed all but 145.00 1 month over paid in full extra 5.00 for interest for being late on 145.00. They took me to court i lost had to pay full amount of interest of 1350.00. Not only did they get interest they had a corrupt judge made it a total of 688.00 so if you think your right it don't pay to go to court they have lawyers and corrupt judges. You can imagine how i fill about our court system it stinks American general can go straight to ***. I will get back at them if its the last thing i do watch for it I'm pissed.