American First Finance (AFF) faces a 2018 class action lawsuit in California alleging predatory lending practices. Borrowers claim deceptive tactics involving triple-digit interest rates (up to 360%), undisclosed loan terms, and targeting vulnerable individuals with low credit scores. While the lawsuit remains unresolved, it sheds light on concerning business practices and prompts caution for potential AFF borrowers.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2018 (Ongoing) | Borrower Class Action Lawsuit | Facio v. American First Finance, Inc., Case No. 3:21-cv-08184 (N.D. Cal.) | U.S. District Court for the Northern District of California | Challenges AFF’s alleged targeting of low-credit borrowers with exorbitant interest rates (up to 360%), non-disclosure of loan details like total costs and cancellation rights, and potentially violating California consumer protection laws. |
| 2022 | Andrade v. AFF & Others | Andrade et al. v. American First Finance, Inc. et al., Case No. 18-cv-06743 (N.D. Cal.) | U.S. District Court for the Northern District of California | Settled for an undisclosed amount, alleging AFF’s deceptive loan practices and violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act. |
Additional Concerns:
- The ongoing lawsuit raises significant questions about AFF’s lending practices and potential harm to vulnerable borrowers.
- The settled Andrade case highlights additional legal challenges against AFF and potential systemic issues.
- Transparency and fair disclosure of loan terms are crucial for informed consumer decisions and protection against predatory lending.
Recommendations for Potential Borrowers:
- Credit Awareness: Obtain and understand your credit score from all three bureaus to negotiate better loan terms.
- Comparative Shopping: Compare interest rates and loan conditions from multiple lenders before committing to AFF.
- Meticulous Review: Thoroughly read and understand all loan agreement terms, including interest rates, fees, cancellation rights, and potential consequences of default.
- Risk Assessment: Be aware of the risks associated with high-interest loans, such as financial hardship, debt accumulation, and potential property repossession.
- Legal Consultation: Seek professional legal advice if you have any concerns about AFF’s practices or the loan agreement before signing.
Resources and Support:
- Consumer Financial Protection Bureau (CFPB): File a complaint against AFF or seek information about consumer protection rights.
- Legal Aid Services: Consult legal aid organizations for assistance with understanding and potentially challenging loan agreements.
- State Consumer Protection Agencies: Contact your state’s consumer protection agency to report concerns about unfair lending practices.
Disclaimer: This information is for informational purposes only and does not constitute legal advice. Please consult qualified legal professionals for specific legal questions or concerns regarding American First Finance, loan agreements, or potential legal recourse.
