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American First Finance Loans Class Action Lawsuit Overview:
- Who: A consumer lodged a class action lawsuit against lender American First Finance, Inc.
- Why: The plaintiff claims American First Finance is not licensed to provide loans in California and charges interest rates that exceed maximum legal limits.
- Where: The class action lawsuit is pending in California federal court.
American First Finance is an unlicensed lender that deceives consumers into receiving loans with interest rates that exceed the maximum legal limit, a new class action lawsuit alleges.
Plaintiff Larry Facio claims American First Finance is not licensed to provide loans in California and fails to disclose the essential terms of the loans they unlawfully offer.
Facio wants to represent a California Class of consumers who purchased goods or services from retail businesses affiliated with the lender who are, or who the company claims to be bound to its security agreement.
American First Finance Hid Terms, Charged ‘Exorbitant’ Interest, Claims Class Action
The plaintiff says he was never informed his purchase was being financed by American First Finance or what the financing terms would be when he bought tires for his car at Roseville Wheels & Tires in 2017.
Facio claims he was told he would not have to pay any interest on the tires if he paid in full within 100 days, however, he ended up being charged an “exorbitant” interest rate for his purchase and was only informed his loan had been assigned to American First Finance after he contacted the retailer.
“Had he known of the interest rates and other terms of the financing, Mr. Facio would have refused to complete the transaction,” states the class action lawsuit.
The plaintiff says he was made to sign a security agreement at the time of his purchase, but that he was never shown the financing terms.
“Mr. Facio was not informed about AFF and believed that his payments would be made to Roseville Wheels & Tires,” states the class action lawsuit. “He was not shown the face of the computer to know what he was authorizing by e-signing on the small electronic pad.”
American First Finance later provided documents to Facio which showed the purchase contract was not manually assigned, but instead was computer generated, according to the class action lawsuit.
The documents also stipulated that he could only contact the lender to discuss the terms of his loan, the class action lawsuit alleges.
Facio claims retailers go along with the “fraudulent and illegal” scheme because it helps them sell their products or services to customers who want to use a payment plan the company wouldn’t otherwise be able to offer.
“AFF recruits new merchants with the claim that merchants who offer AFF loans can ‘supercharge sales’ and AFF decisions to finance loans will be ‘super fast!’,” states the class action lawsuit.
Facio claims AFF is in violation of California’s Consumers Legal Remedies Act, Unfair Competition Law, and the Unruh Act, Civil Code § 1801.
Facio is demanding a jury trial and is requesting monetary damages, statutory or punitive damages, and restitution for himself and all Class Members.
A separate class action lawsuit revolving around allegedly unsavory loans was filed in California this month by consumers who argue that Wells Fargo and other lenders offer loans to first time home buyers that are designed to fail.
American First Finance competitor Affirm Holdings was accused of tricking consumers into purchasing more, and paying high fees later, with “buy now, pay later” payment plans, in a class action lawsuit filed earlier this year.
Have you been charged a high interest rate after being unknowingly financed by American First Finance? Let us know in the comments!
The plaintiff is represented by Robert S. Green, James Robert Noblin, and Emrah M. Sumer of Green & Noblin, P.C., Alicia L. Hinton of the Law Office of A.L. Hinton, and James C. Sturdevant of The Sturdevant Law Firm, APC.
The American First Finance Loans Class Action Lawsuit is Facio v. American First Finance, Inc., Case No. 3:21-cv-08184, in the U.S. District Court for the Northern District of California.
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129 thoughts onAmerican First Finance, Unlicensed in California, Charges Illegally High Interest, Says Class Action
They charged me 65% interest so I went to give the couch back and they wouldn’t take it. I didn’t pay for a month and my credit went down 41 points. This is a rental to own and they won’t take it back.
Bought tires through tires.com. Was told it was about 12 payments of 205 said okay. Then we found out it was 18 payments and for 1300 dollars we have to pay 3 thousand. It’s ridiculous
They charged me 120% interest on $1700 purchase. My bill was $4600.00.
I purchase some furniture and the total that I had to pay was $1, and it will remain so if I paid within 90 days, I was not able to pay in 90 days and now I owe American first finance almost $3,000 this is absurd. I live in Rome Georgia and was not informed that the rates will be this high if so I would not have purchased it. I am now behind on my payments and refused to pay any more because of the very very high interest rates that just seemed not legal to me. Please help!!
I purchased a used refrigerator and a washer/dryer. pair that was new. I was charged $6,034 in interest on a purchase amount of $2,496.99. This is outrageous! I was not told I would be charged this rate of interest. I hope this class action suit is approved because I need ALL MY MONEY BACK NOW!!!
A person some furniture and got it financed through American first finance. The price that I was to pay was $1169.95, it will remain so as long as I pay within 90 days. I failed to pay within 90 days and now I owe American first finance $2,878.95, this is outrageous and cannot be legal. I fell behind on my payments but I refuse to pay this high interest rate this cannot be legal. Please help!!
I had some teeth fillings about 8, I was charged 1400 with a 40% interest rate… I’m just finding out about this
I have an issue with this company. IDK if i can get incite or someone can help me out. I purchased furniture in April and they were scheduled to take $73 weekly. Its now August going into September and i received an email saying they will start today to remove the funds. Now I signed a contract with them in April. Does this mean they breached the contract?
They are charging triple and not even explaining this is illegal HELPPP. IN THE STATE OF INDIANA
Me too what did u do about it there should be a law suit for every state
Hi about a year and 2 months ago i purchased a washing machine valuedles than 500.00 I asked them if they were connected with sears appliances. The sales gentlemen said yes. With insurance and everything my total was about 1200.00 I figured by December I’m done. Not knowing that instead of 6 month free interest it was 90 days. Not only but interest charge on a daily basis. I was very upset to find out. But overall my bill wouldn’t go down. When here I would send extra for it to go into principal. I was told of 200.0 only few dollars or nothing. Then it turns I would rnd up paying $3200. I wanted them to pick their washing machine immediately. I asked for a supervisor, they only cared for payment arrangement. The would call text email. I definately told them not even when i bought my car, i was taken advantage. Sorry but nowhere in California have I heard of such thing. Sincerely i would like to make sure their brought to legal matters. Now they charged my account. After paying almost 1000.00 they asked for 700.00 to finalize payment. They screed my credit score. Other retail stores have ever done such a thing. Be aware
AMERICAN FIRST FINANCE ME ACABA DE DAR UN CONTRATO DE 1000 POR UNA COMPRA Y AHORA TENGO QUE PAGAR 2300 MAS DEL DOBLE Y QUIERO CANCELAR YA ME COBRARON 55 EL MISMO DIA DE LA COMPRA NO SE SI ME LOS DARAN PATRAS CUANDO CANCELE YO NO SABIA QUE IVA APAGAR MAS DEL DOBLE DE LA COMPRA
AMERICAN FIRST FINANCE ME FINACION 1000 Y HAORA TENGO QUE PAGAR 2300 Y ANTES DE VER EL CONTRATO YA ME AVIA COBRADO 55 DOLARES Y DESPUES DE FIRMAR EL CONTRATO PENSANDO QUE IVA APAGAR 1300 POR LOS 1000 QUE MEDIERON VEO QUE SON 2300 Y NO SOLO ESO EN EL CONTRATO DICE QUE PAGARE 95 DOLARES 15 NALES Y EL DIA SIGUIENTE ME LLEGA OTRO CONTRATO QUE YO NO FIRME NI ESTUVE DEACUERDO DE QUE BOY A PAGAR 115 CADA 15 DIAS COMO ES POCIBLE ES LEGAR ESO ME GUSTARIA SABER ME IMAGINO QUE NO ES LEGAR Y ME GUSTARIA CANCELAR
American first finance is charging me $164% interest rate
Last month they took out $64 and some odd cents three times.