Complaint Review: Americredit

I would like to share my own experience with Americredit.

Happily, I have dramatically improved my credit ranking since husband and I filed for a Ch. 7 in 1999. We can now use conventional means for financing options. Specifically, we have a credit union we use for loans, and we are not ever treated second rate by them. We now also have average to high FICO scores, this gets us on marketing lists for loans through reputable companies. My profession for 6 years is Credit & Financial Manager. I actually get to help people with their credit! And weed out people who abuse the system.

My background goes as this: I kept a decent, if not perfect, credit history as soon as I was able to acquire a credit card. I was unfortunate enough to have been sued and judgment placed for medical bills for my cancer & immune system care. In fact, half the bills were from when I was under 18, a minor, and the other half were from misbillings or nonbillings to my insurance, plus a slew of other things. Did I mention I also work in the medical industry too fighting fraud and bureaucracy of the gov't/private insurance world? Being angry and affected helped motivate me to do more for other people. So what I see here and what I experienced no matter how you call it is FRAUD. And it's the way of the world, but the more you know the more you can protect yourself.

That being said--why in the world would I use Americredit for car financing? In 2001, I decided I really needed to make a substantial purchase to make a big impact in recovering from the bankruptcy. I bought a $20k car and agreed to a loan with Americredit with an 18% interest rate. OUCH. Well, motivated to show I was creditworthy again; I'll pay the loan off as soon as possible. I looked at it as "paying for good credit"I was right in more than one way. I am thankful my problems weren't nearly as great as others here.

My first suspicious situation with Americredit was incorrectly calculated monthly interest fees. Those of you who are with Americredit know when your payment is shown posted on your statement there is a message under the description: (principle $325+interest $127). Please, if you a customer of Americredit go back and calculate EVERY penny of what you were charged for finance fees on a monthly basis. You can seek community help by advocate accountants in the phone book for free or a flat inexpensive fee. Then dispute it like I am now. I do advise to not dispute until balance is paid in full. Arguing what you owe while you owe with a company like this can be a dead end. Wait until you are finished 100% then go back and ask for a refund. My next step will be small claims court. Keep your statements and document every payment. You'll need it. I calculated nearly $600 over 3 years of a 60-month term loan of Americredit's interest rate miscalculations.

Secondly, not a huge issue but important and dishonest enough--I had made several of my payments through their ACH system (AKA: EFT, Check By Phone, Online Pay, etc). One month I noticed the balance had not withdrawn for over a week after submitting from my checking account. I called my bank to see had they seen any activity of an attempted ACH withdrawal, they said no. I asked had any banking info (routing#, sub#, participation) changed on their part. No, it had not. I proceed to contact Americredit. I ask them why they have not submitted my online payment to my account. They said there was an error with the first submission and they would resubmit and assured me I would be contacted if a problem. Asked if I would be considered late (as it was now a day after payment due) because knowing tactics predatory lenders use--they take EVERY opportunity to raise your rate, claim late fees, make derogatory remarks on your credit, etc. I was told: NO IT WAS THEIR ERROR, I WAS A GOOD CUSTOMER WHO NEVER PAID LATE. I also am great now with documenting everything and holding every bill for the 7 year rule. Every statement from Americredit was kept to show I had in fact according to their records ALWAYS paid ON TIME. I of course had all my documents printed from my online payment transaction in this situatio. Everything on the documents were 100% correct. I decided to CYA and FAX the information to their billing department and confirm my conversation with their rep.

Four business days later, no withdrawal from my bank and coincidentally I kept receiving hang-up calls at my work. Called back the caller ID and guess what? It so happened to be Americredit. I wonder if it confused them because they were calling the credit department of my company? I proceeded to ask for whoever was contacting me from the number to ID themselves. After giving them my account number they put me through to an account rep. She insisted I was late and in default of my payment.

Very curt, very snide, very not willing to understand what was going on. I attempted to confirmed my side of the story, but after two breaths, she was not listening and quite rude and said to simply give her the ACH info right there and she'd handle it. Turns out she says my bank account number "I" submitted was wrong. The four zeros were dropped off the front of my checking account number (i.e.: '00001234567' was just '1234567').

Frustrated and not willing to argue I gave the info again and said I wanted the prior transaction I submitted cancelled and to make note on my account I WAS NOT LATE DUE TO THIS (THEIR) ERROR. Then next day money was withdrawn, but PLUS $7.95 for their Western Union fee. FOR THEIR ERROR THEY CHARGED ME. I called the next day and spoke nicely but firmly about my concern with someone who clearly didn't care that I had to pay for an UNDISCLOSED FEE for THEIR error. Fed up, I knew I had no choice but to refi with someone else if I didn't want to deal with this type of tactic. Luckily I had the opportunity to refi the car. And buh-bye scam artists at Americredit.

I'll let you know how the recovery goes on the overcharges for interest fees. I advise you because not just how unscrupulous Americredit specifically is, but how all predatory lenders are, to think carefully before you sign on the dotted line. An educated consumer is the best weapon against these corporate creeps.

Kristen l
Seattle, Washington
U.S.A.

Click here to read other Rip Off Reports on Americredit Auto Financial Services