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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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130 thoughts onAmerican First Finance, Unlicensed in California, Charges Illegally High Interest, Says Class Action
I got some wheels and tires that were $2700. When I made the last payment and checked after 2 days it said I owed $4000. I probably only had missed one day but even then that is a ridiculous amount. Idk what to do
I’ve experienced the exact same as the above victims. I bought furniture around March of 2020, was told my 2k that was financed could be paid off in less than 100 days with no interest accrued. I could not do that due to their phone number being out of service. I’ve emailed to no avail. They also pulled out from 2 accounts a total of 1500 making daily to weekly withdrawals in different amounts. Then they sent my banking information to a creditor. The creditor stateted my remaining balance was almost 5k?!?! How in the heck is that right? Totally not a math wiz, but that’s not right. I would love to sue them. They have screwed my credit so bad! I was at nearly 700, it’s since dropped to 480 all because of them. Help me somone!!!
Bought couches tried to pay before 100 days and I was told that it’s almost the same amount and that if I don’t pay it In a week I’m going to be charged 5000 in financing predator loan they don’t show you the real terms of the loan so you get scammed I’m literally sick to my stomach
Had to refinance my transmission for $3500. Only had $750 left to pay and balance jumped to $1850 in one day. American First Finance are unethical and can rot in hell!!!
They completely lost my trust. They rip me off! I wanted to pay cash, but they said if I did that it would take 2 weeks for them to deliver the fridge, but if I used their financing they could delivery the fridge in the end of the week. He told me there would be zero interest in the first four months. I hate financing but agreed because the food in my house was in a cooler due to a broken fridge. I thought no big deal I’ll pay it off before they start charging interest.
It turned out they don’t charge interest but they charge a finance fee of almost $4 a day. In other words almost $200 a month to finance my fridge that I wanted to pay cash for. Equivalent to over 16% interest. I realized that in 2 months so it cost me about $240.
Yes they told me that too….I almost forgot…. Did you go to the la Mesa store…?
I live in Illinois, and had work done on my car. Thry said I could use AFF, make low payments, and have a low interest rate. Meineke failed to order the parts for my car, so they did some of the work one day, and finished it the next (when they got the parts in). I was told the total amount for all of the work done would be about $1 000. I saw a payment to draft for the correct amount, the day it was supposed to. However, another repayment for the same amount was drafted the following day. I was told that it was 2 bills I owe, and it was DOUBLE what I was told it would be. We made a few payments, then they said they would put it “on hold” becasue Meineke was supposed to contact them to let them know the amount was incorrect. They never did, and we were quickly in collections. We received a letter from FBCS, Inc, saying we could pay a smaller amount and that would take care of the entire balance for both bills. Spoke to some at FBCS to verify that was the case, and they confirmed it was. We paid the amount, and they confirmed that took care ofnthe entire balance owed. Webare now receiving locally from a different collection agency stating no payments have EVER been made. I contacted AFF, and they said not one payment is showing was made – EVER. I am giving them ONE chance to fix this, as they filed a “complaint”. Next stop is the BBB and a lawyer. Every one of my accounts show an “excellent” payment history. This ONE bad debt on my credit report just got me denied for a car loan. The girl I spoke to on the phone at AFF was actually nice and helpful, and actually understood the issues I have, let me explain what was going on, and never once interrupted – which is a VERY rare thing when talking to a place like this. Wondering if there is any recourse anyone know of for Illinois?
Yes purchased my puppy through them was 4200 I’ve paid 600 month since September and b as laa as cd is 4600. I don’t understand how and why?
I’m in Georgia and realized today I have been charge excessive fees for a bedroom suite. Product was $1,659 and now saying the charges are about $4600. This is unacceptable!!
I like info a $1k item is now $5k this is a scam
I financed a scooter through this company , which ended up getting stolen. I have a police report and all documenting I do not have possession of the item anymore. Asked them if they could settle for a price, due to the fact I’m paying for something I no longer have possession of. The original price was 2,200. Now after the payoff date it went up to over 7,000