Automotive Finance Corporation
AFC Cal, ADESA, KAR AUCTION 500,000 Loans, Unlicensed Lender, Predatory, Usury, Flooring, Department of Corporations

AFC is suing California car dealers in Indiana Courts for millions.

A complaint to the California Department of Justice regarding Automotive Finance Corporation (AFC) operating as an unlicensed lender in California from 1999 to 2007 was filed this month.

A half-million loans are alleged to have been made in violation of Californias usury laws. AFC, a subsidiary of KAR Auction Services (KAR), is a flooring lender for used car dealers.

They were accused of providing false information to the Department of Corporations on an Application for a Finance Lenders License on 1/27, nearly eight years after operating as a lender in California with five branches.

Automotive Finance Corporation stated that AFC CAL, LLC had recently formed on January 23 in a filing with the Secretary of State signed by attorney-in-fact Mark T. Gillett of Morrison Foerster, LLP.

AFC also falsely stated in their Application that all loans were commercial and in amounts of $5,001 or more.in fact, thousands of loans were for amounts of $1,000 to $3,500, thus subjecting them to the restrictions of personal loans.interest charges on these short term loans often exceeded 500% interest, which was never fully disclosed to the borrowers.

California businesses are under a coordinated attack by AFC attorneys, using Marion Superior Court in Indiana to deny due process to hundreds of car dealers that borrowed and transacted their business only in California.

Company: Automotive Finance Corporation
Country: USA
State: Indiana
City: Carmel
Site: afcdealer.com

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