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AmeriCredit / Unfair business practices!

1 United States Review updated:

In 2001 I purchased a used car through Courtesy Pontiac in Las Vegas and signed a financing agreement with the dealership. The terms were 60 months and a $30. late fee for late payments. I lost my job just after 9-11 and then got sick. I struggled to make the payments and several were late.

I made the last payment and paid all the late fees only to find out that I still owed $2,500. According to Americredit I did not sign a defined payment loan as I was lead to believe but a simple interest loan with no defined terms or conditions.

The terms and conditions printed on the front of the contract were put there to satisfy the FTC requirements of disclosure but did not reflect the actual terms of the loan. When you turn over the contract there is a single paragraph that informs you that your are actually signing a simple interest loan and that the terms and conditions may differ from what is disclosed on the front of the loan.

Never having financed a car at a dealership before, I always went to a bank, I never expected to be taken for a ride like I am on now. I keep paying towards the $2,500 but the interest is still being added daily. This is addition to the 60 payments and late fees already paid.

Americredit tells me that it is not their problem. They bought the contract from the dealership and if they didn't explain the terms properly then it is my fault for not asking. I expect that thousands of Americans are being gouged with this practice.

Make sure that you ask before you sign "Is this a simple interest loan?" If it is shop elsewhere! If you are late once you will be charged thousands of dollars even though you paid all of the payments and late fee. Check with your credit union or local bank. Stick to small banks that offer defined payment loans. Never sign a simple interest loan unless you are absolutely sure you will never and I mean never make a payment late.

Write you congressman, Senator and the Federal Trade Commission demanding that this bait and switch practice be stopped. By the way Americredit refuses to reduce the balance and continues to threaten they will charge off the account even though payments are being made to reduce the alleged principal.

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Comments

  • Fr
      12th of Jul, 2007
    0 Votes

    I agree totally. This same incident has happen to me and americredit sent the loan as default to the credit bureau and this was after they had made arrangements for the final payments. I always thought i was paying the late fees, but was told i was not. I paid over the amount to compensate the late fee. But they said no and refused to review the account for the late fees and charged me anyway. I hope they get what is coming to them.

    First the interest was excessive, and their practices were different from what was expected. I am still writing them.

  • Ma
      12th of Oct, 2007
    0 Votes

    Yes, there are many companies like Americredit out there, and they operate is shady states that have extremely lax laws on behalf of the consumer. About the only solution is to try and get refinanced, but that would probably not resolve everything as Americredit would probably only transfer the principal and not the interest. They really need not be in business and I honestly don't care whether it puts 1,000 or 10,000 people out of work, because most of their representatives have bad attitudes and act as if you are creating a problem for them. I have spoken to a few nice representatives, but I would guess they don't last long as Americredit seems to condone way less then professionalism when dealing with customers. I was actually told by what was supposedly a supervisor "we are not here for customer service, we are here for collections". Okay, so I am a few weeks behind, but I am never beyond 30 days, and so what if I were, you still get the money; Americredit has representatives who will actually laugh at you, or worse, start raising their voices and even go as far as to get into shouting matches with you. These people are beneath a collection agency, because they go the extra mile to be nasty about everything, even after you have probably paid the principal and interest, but owe nothing more than some interest they created. I know many people would say "buyer beware", and all I can say is that when you deal with anyone financial institution, think about who they are first. I have dealt with Ford and Toyota and their people are also extremely bad, at least their were at the time, but at least the loan terms were much more favorable.

  • St
      12th of Nov, 2007
    0 Votes

    The exact same thing happened to me 60th payment, and they took my car AmeriCredit saying I owed 2,321. Im sorry this happen to you but Im glad I found you story because it confirms exactly what happened to me can we start class action law suit. It feels bad to make all 60 payments and have no car!

  • Be
      26th of Nov, 2007
    0 Votes

    Wow! The same thing has happened to me with Americredit. My loan "expired" in July (according to Americredit). I made my last payment in August. A couple of weeks ago, I traded in the car just to get rid of $2600.00 I still owed Americredit. The "expired" car loan that I had just paid for the past 72 months was about to be charged off and my car was scheduled to be repossessed (never mind what this has done to our credit). Americredit is a rip off. I think the car dealership is as much to blame as the finance company. A less than honest dealership will work with less than honest finance companies. The dealership from where I purchased the new car told me that the Amercredit thing is a scam. They also told me that my new loan is a straight out loan, not the "balloon loan" that was sold to us a few years back with Americredit. When you buy your car, don't be afraid to ask questions. If you're afraid to ask questions, trust your gut instinct. You won't get in trouble if you don't sign the shady papers the dealerships and the finance companies like Americredit want you to sign.

  • Ru
      11th of Dec, 2007
    0 Votes

    Hi these guys just ripped me off also get the class action going I am in all the way. My loan is just as you guys said yours were they picked up my car 60 payments an no car.

  • Ev
      12th of Dec, 2007
    0 Votes

    Hi Guys,

    I am totally ready for a class action. We only need about 5-6 people to start it. My case is maybe not as bad as you because my car did not get repossessed. I have been making all the payments on this car every month. When the last statement came, it said I had to make a payment of more than $400 when my monthly payment was $218. SO when I called them about it, they told me that the loan had matured, so the full amount was due. I told the representative that I could not make such a large payment, so she asked me if I could make at least that month's payment, and pay the reminder the following month, so I made a payment over the phone (meaning I had to pay the stupid $7 fee for paying aver the phone) . On 12/03/07, I made the last payment, thinking I am finally done with this car. On Monday 12/10, I receive an email alerting me that there was a change on my credit report. When I went to look at it, Americredit had reported on Saturday 12/8 that my account was 30 days past due!!!!!
    So I called them on 12/11, and they told me that because I did not make the full payment at maturity date, they reported my account as being past due. SO even though I made arrangements with them to make 2 payments, they take my money AND go ahead and report it to the credit bureau. I'm am pissed off right now, and can't believe they would do that.

    PLEASE, let's start a class action suit.

  • Ma
      11th of Jan, 2008
    0 Votes

    Please, please, please, start a class action lawsuit against them or at least get them to immediately change their business practices. I will be the first to admit that I am not always the most prompt payer, but I have always paid off my car loans within a reasonable amount of time. If I had a way to refinance this loan through another respectable source I would. About 16 months ago, my previous car (financed through Ford) was totaled and I desperately needed to get another car immediately. The car I picked out fit my needs and because I already had another car loan through FMC, I was put in a bind and had to deal with this company. My other vehicle was paid off and FMC sent the lien release out within a week. The thought that I will have made all my car payments and paid enormous interest fees and could still have my vehicle repossessed after 5 plus years is terrifying. The worst part is that they list an American payment address and Texas address and have the gall to field ll their calls thorugh CANADA. I've always wondered if this breaks any US or state laws. I live in Maine and would appreciate and pointing in the right direction. Many thanks.

  • Ke
      13th of Feb, 2008
    0 Votes

    Americredit is BY FAR the ABSOULUTE WORST company to business with. They are EXTEMELY rude when you talk to them. They call you seven and eight times a day if you are even a few days late on your payments. I agree with everyone who posted complaints about them. They don't care about ANYONE and it shows big time. I would LOVE for there to be a class action lawsuit filed against them and for them to go out of business forever. It's only fair and right for all the HELL they put people through. The interest that they charge is outrageous. They try to use illegal scare tactics to get you to pay them. They repossessed my car because I didn't realize that I was behind on my payments. I fought like HELL to get it back. They told me that it was going to be sold at auction if I didn't come up with the money to pay them. It seems like they are the MAFIA of the business world. The ends justifies the means in their eyes. I found out later that they have to give me at least 30 days from the day they reposess my car to allow me to get it back. YET in the letter they sent me it said that my car was going to be sold at auction in TWO WEEKS from the date I received the letter. THAT IS HIGHLY UNETHICAL AND ILLEGAL. Americredit should be shut down. I hope they burn in hell and every employee is tortured the exact way they torture the victims of their "loans".

  • Ki
      19th of Feb, 2008
    0 Votes

    I just made my last payment with americredit and received a letter today that I owe 2,912.00. I called and they explained simple interst loan mumble jumble . They also advised that I owed by March 14,2008 or more interest will incure . I thought I was the only one. Has anyone started a class acion lawsuit ? I was going to small claims court .that is an additional 6 payments on a loan and with the interest this wll never be paid off . Please e-mail me if anyone has started a class action law suit or any kind of legal action.

  • Ni
      19th of Feb, 2008
    0 Votes

    This company is the absolute worst buch of dirtbags known to mankind. I had two loans with these criminals and paid out over 60.000 in combined payments. The balance never went down never, if you are late they are relentless. They are rude and criminal in their actions. They will say anything to anybody I went to several lawyers and they agreed with me yet would not take them on. I finally filed BK to get rid of the ###, and they got their cars back , me I was burned. This was about 3.5 years ago. I recieved a check today from a class action from another dirtbag company, not much just a small check. I thought wonder if anybody is after Americredit yet and here you are. I really hope someone goes after these bottom feeders as I know they are still making people miserable. STOP THESE CROOKS NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Pe
      7th of Mar, 2008
    0 Votes

    How about I owe only one more payment to Americredit but my balance is still $7300.00 How in the world is this possible? Please if there is a lawyer willing, please file a class action suit!!!

  • Ke
      10th of Mar, 2008
    0 Votes

    Yeah, this compay is a piece of crap. I have paid them so much money at one time I fell behind a couple of months and was paying them $200.00 a week and it seemed like my bill never went down and that bogus deferrment crap, pay the $211.00 and then you still have to make a payment in a couple of weeks. I just made my 59 payment and saw that they added an extra $500.00 after the 60th payment is done. What B.S. Let me know if you can get a class action suit against these guys. They are the dreggs of the earh. I must have gotten 2,000 calls from them over the course of the loan.

  • Me
      11th of Mar, 2008
    0 Votes

    Our car just got repo-ed yesterday morning while we slept from Amercredit. The loan had matured in Feb, and we had till today to pay the balance of about $1200.00. I have been calling since yesterday to talk to someone about this, and can't get through to anyone, as the deptartment they refer me to is always busy. I don't even know where my car is, where my stuff is, and we have had no official notice that the car was going to be repossessed. I understand we were behind, but I was 2 payments from having it be all over with, after over 6 years of paying them for that car. If anyone has any advice, would love to hear it.

  • Ti
      13th of Mar, 2008
    0 Votes

    HOW ABOUT THIS ONE, WE PUCHASED A CAR IN 1999, I PAID ON THIS CAR FOR 67 MONTHS. I USUALLY PAID ON LINE BUT WHEN IT CAME TIME TO MAKE THE LAST PAYMENT, I HAD TO CALL THEM. MY FINAL PAYMENT WAS SLIGHTLY HIGHER THAN THE NORMAL PAYMENT. I MADE THE FINAL PAYMENT IN APRIL ,06. ABOUT A MONTH LATER I RECEIVED A LETTER FROM THEM STATING THAT I HAVE COMPLETED MY INSTALLMENT AGREEMENT AND IF I EVER THEY COULD EVER HELP IN THE FUTURE DONT HESITSTE TO CONTACT THEM. WELL IN THE MEANTIME THE CAR HAS QUIT RUNNING AND ALTHOUGH THE ENGINE IS SHOT THE BODY IS DECENT. I BOUGHT ANOTHER CAR AND DECIDED TO SELL THE CAR, THEN I REALIZED THAT THEY HAD NEVER SENT ME THE TITLE TO MY CAR. I CONTACTED THEM AND TO MY SURPRISE THEY SAID THAT I OWED THEM $995.00 YET ON THE CAR. I ARGUED WITH THEM OVER THIS AND EVEN OFFERED TO PAY SOME KIND OF SETTLEMENT, BUT THEN THEY SAID I OWED THEM 1100.00. I ASKED TO TALK TO A SUPERVISOR, THEY WOULDN'T DO THAT. THEN I TOLD THEM TO COME AND GET THE CAR, BUT THEY SAID I OWNED IT AND THAT IT WAS MY PROBLEM, THEN I TOLD THEM TO SEND ME THE TITLE IF I OWNED IT. ANY WAY INCLUDE ME ON THE CLASS ACTION SUIT IF IT GETS STARTED. THANKS FOR LETTING ME VENT. I ALSO ASKED THEM IF I OWE THIS MONEY THEN WHY DIDNT YOU CONTACT ME FOR TWO YEARS.

  • Ma
      27th of Mar, 2008
    0 Votes

    It seems that I too have been somewhat "scammed" into AmeriCredit's hell hole! I have been laid off work since December 2007 -- Since then I have spoken with 2 reps regarding my situation. Their answer is that they cannot lower my monthly payments and that before I even fathom turning in my car to them, that I should try refinancing (No one will refinance as I am unemployed), visiting car dealers and possbily getting a deal with them(Tried this route, and it seems that you get into a bigger hell hole; because if my car is worth 10, 000 I still have to pay remaining balance of 4, 500 along with amount of new car purchased; therefore making my monthly payments really impossible to pay. This is simply unheard of in the unemployment realm.) I will never use this bank ever again. Lesson learned.

    Margarita

  • Lo
      7th of Apr, 2008
    0 Votes

    I've recently encountered the crookedness of Americredit.

    I purchased a vehicle in NY in 2003( Financed thru LBAC who sold their accounts to Americredit ) made my 60 payments plus a few extra because they were too lazy to check and post payments on time.

    After tracking my payments to ensure they were fully paid they turned off my account because the account was paid in full and then some. Yes, they sent me the original contract with a paid in full stamp Feb 08 along with my title for the vehicle.

    I was told they owed me money, however a month later they sent me a bill for over 541 dollars.

    The first lady I spoke to claimed it was an error on their behalf, only to get another call claiming they had posted someone else's checks to my account; she claimed they had taken some credits away from my account because they thought the checks were posted incorrectly - These payments were taken directly from my check. I made several calls to rectify and prove my payments and left a number for them to call but I never heard from them.

    today I received another call from AmeriCredit who still claims I owe the $541. This time the justification is: the charge is overall finance charges for the whole loan ( 15 Cents a day). OMG I've paid $300 a month for 60 months which was the initial contract terms which included finance charges. I even have the papers (contract) to prove it.

    I told her I was going to speak to my lawyer and call the BBB and she hung up.

  • Se
      10th of Apr, 2008
    0 Votes

    I just got my car repo-ed a week ago due to a payment that was missed in Sept. I have only had the loan for a year and a half. I had to have a surgery and they told me that I needed to pay $210 to defer the payment and I asked for this information in writing and I have yet to get it. Once my car had been repo-ed they called ma and asked me did I want the car back and I told them no and I would see them in court. If there is a class action lawsuit please call me I have all of my records ready.

  • Na
      24th of Apr, 2008
    0 Votes

    Americredit is a hard company to work with. I had to move for job relocation in mid March of 2008, and I fell behind on one payment. I had asked for deferments for March 08 payment, back in Feb 08, because i knew it would be hard to make my car payment with all the expenses of moving cross country. Americredit would not work with me and told me that the company decides who gets defferments and that i did not qualify. I finally am caught up with my payments 2 months later. While trying to get caught up, i got like 7 calls a day from Americredit. It truly is rediculious that they treat there customers like this. I am about to say screw my car, ill live without one for now, if they keep up there bad practices.

  • Lo
      8th of May, 2008
    0 Votes

    You are right car dealerships are in with some of them. I would like to join the suit also. What they did to me is crazy. My soon-to-be husband only needed a co-signer and when I came down from Louisiana I only needed to sign the paper. What this lady did was put me as the owner. She knew my job paid less than $200 every two weeks. How can I buy a car? When they repo my car the man called the company and they said she was fired, but they did not want to talk to me. If anyone takes the case let me know.

  • Va
      21st of May, 2008
    0 Votes
    AmeriCredit - Avoid them
    AmeriCredit
    United States
    www.americredit.com

    Our Long Beach car loan was sold to Americredit, and unlike some unfortunate others, we did receive the letter notifying us of the change. However, we found that Americredit CHARGES us $5 every time we pay our bill online! I pay ALL of my bills online, and have for years, and I have never been charged to pay any bill online! I am outraged that I have to PAY extra to pay them money! I complained and argued with a customer service rep over the phone and he would not budge on forgiving the $5 charge. I told him how ridiculous that charge is, and said that I would re-finance just to get away from that company, and he told me that I could either mail my payment in or set up automatic payments to avoid the fee, and I laughed. Stupid. I am a customer, and I feel that being charged an extra $5 on top of the interest they are receiving off my loan is not only unreasonable, but should be illegal. Unfortunately, it was not in our best interest to refinance (oh yeah, I tried), so I have written emails to Americredit complaining about this charge, but I have yet to receive any response. Hmmmm. So, if you have a choice, go with another company. We have had Wells Fargo for several other loans and they were wonderful, and there was NEVER a charge to pay a bill, online or otherwise.

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