Among the court records in Henry County Indiana, below the rapists, molesters, DUI’s and other cases, we found this:

American General Finance vs. Household Finance Corp. III, mortgage foreclosure, plaintiff entitled to default judgment, defendant barred and foreclosed forever of all right, title and equity in real estate.

The interesting thing about a second mortgage is the finance company (in this case HFC) has no real protection when a reposession takes place. HFC says the risk is higher so the rate is higher. That is understandable. Predatory lending, on the other hand, is defined here and amplified in our forums:

“Predatory lending is the practice of imposing inflated interest rates, fees, charges, and other onerous terms on home mortgage loans–not because the imperatives of the market require them, but because the lender has found a way to get away with them.”

American General, at least in the case of car loans, requires the borrower to sign a statement that exempts American General from any bankruptcy, of states that the borrower will reaffirm if they declare bankruptcy.

Related posts:

1. Predatory Lending Defined by Household - HSBC Watch
2. HSBC North America Before and After
3. Subprime lenders charge excessive fees or rates
4. Household Finance costs HSBC $5 Million in Missouri Lawsuit
5. HSBC Attempts to Buy American Political Process