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Vantage Credit Union allegedly overcharges their Missouri customers by issuing auto loans with excessive interest rates.
According to plaintiff Twanna Henry, Vantage Credit Union is Missouri’s third largest credit union – providing services to over 77,000 credit union members. This reputable credit union allegedly takes advantage of some of their consumers with excessive interest rates on auto loans.
Henry says that Vantage enters into unlawful agreements with automotive dealerships such as Honda of Frontenac. These secret written agreements allegedly allow the dealerships to charge Vantage credit union members higher interest rates than what they should be charged. Through these inflated interest rates, Vantage and the automotive dealerships are reportedly able to collect significant additional profits.
“Yet, Vantage never discloses to its members who finance their vehicle purchases through a Vantage Dealer that they could have obtained a lower interest rate had they simply gone directly to Vantage for financing,” the Vantage interest rates class action lawsuit contends.
“And, it never discloses that it offers better interest rates to Vantage members who obtain financing directly through Vantage.”
According to Henry, Vantage takes their misdirection a step farther than simply failing to inform consumers of the scheme. On the credit union’s website, consumers are allegedly encouraged to apply for loans through the dealership – despite Vantage being complicit in the interest rate scheme. The website reportedly encourages members to use their “Vantage Indirect Dealer Network” of “nearly 150 local automotive dealers” to apply for and close on an auto loan.
“[D]ue to the secrecy of Vantage’s agreement with participating dealers and its policy of not disclosing the lower Buy Rate for which the member was actually approved, Vantage’s members remain completely unaware that the interest rate presented to them by the Vantage Dealer was arbitrarily increased above the interest rate determined by Vantage based upon the credit qualifications of the member,” Henry argues in her Vantage interest rates class action lawsuit.
Henry reveals that she herself was deceived by these representations in 2013. In December 2013, Henry reportedly purchased a vehicle from Honda of Frontenac – a participant in the “dealer reserve” stratagem. As a result of purchasing a vehicle and closing on an auto loan through the dealership, Henry was allegedly issued a high interest rate of 10.08%. According to Henry, she would not have been forced to pay as much over the life of her loan if she had been offered the interest rate Vantage had actually approved for her.
Henry maintains that she and other consumers were financially injured by this purported scheme as they were forced to pay “hundreds or even thousands of dollars more in interest over the life of their loans,” due to higher interest rates.
Henry seeks compensation on behalf of a proposed Class of Vantage Credit Union members who were charged inflated interest rates as a result of financing through Vantage and a Vantage automotive dealer.
Have you been subject to excessive interest rates? Share your story in the comment section below.
Henry and the proposed Class are represented by Bryce B. Bell of Bell Law LLC; Janet Varnell and Matthew Peterson of Varnell & Warwick; along with E. Michelle Drake and Joe Hashmall of Berger Montague PC.
The Vantage Interest Rates Class Action Lawsuit is Twanna Henry v. Vantage Credit Union, et al., Case No. 4:20-cv-01865, in the U.S. District Court for the Eastern District of Missouri.
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One thought on Vantage Credit Union Allegedly Charges Excessive Interest Rates, Claims Class Action Lawsuit
I was changed high interest rate 10,000 juz to much