RE: Household Automotive Finance, California - Predatory lending
I bought a car 1998. The loan was for 60 months at a 21% interest rate. I had no choice at the time and I had poor credit was the only way to get to work. Numerous times I tried to have the car refinanced through another financial institution. I was unable to do so because the payoff on the car was too high and I did not have $2000.00 to cover the difference in the payoff amount and that car's true value. I never really understood why.
The loan has matured and Household Automotive Finance, is stating that I still owe them approximately $5000.00 more for interest accrued for late payments and that it the interest will continue to accrue until I pay off the balance. Throughout my loan I paid $35.00 late fees but was really unaware that this could even happen. When I spoke to them they made no mention that this interest was accumulating they waited until my loan matured to tell me that I had the outrageous outstanding balance that continues to grow daily. I do not have the money to pay this and the car is not worth $5000.00 however since I have no other means of transportation in order to work I am stuck.
They have recently sent me a new agreement to sign that gives me the opportunity to pay them $146.70 which is at a 7.99% per month to re-amortize my loan for the next 7 years. I felt forced to sign it as I can afford a new car or even another used one at this point and the last thing I need is repossession on my credit report.
I am writing to you for direction on this matter. I have done some research and Household Automotive a/k/a Household International is known for unfair predatory auto lending and mortgage lending. I am not unaware of any class action law suites that are currently in progress against them nor can I afford an attorney. I would be more than willing to forward you all papers pertinent to my situation for your review.
This company is getting away with theft and people who are trying to get back on their feet after divorce and such are the prey. There is no justice and they are getting away with millions. I would sincerely appreciate if you could let me know if there is any recourse for me at this point.
Any one else with this problem please contact Arnold Diaz of CBS Shame on you show. The more who contact him he might consider doing a report on this. Also write to the Better Business Bureaus and to your State Attorney's Office.
Thank you
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