Complaint Review: Westlake Financial Services

WFS (Westlake Financial Services) is a predatory lender, that preys upon people they perceive to be weak. The weaker the potential customer the more enthusiastically WFS pursues them. I am a single mother--my only income is $22,000 yearly. I am just the kind of customer Westlake Financial Services is looking for.

I purchased an automobile from Westlake Financial Services, Inc. which provides 'sub-prime' financing for automobiles. People who would need a sub-prime lender are people like me - poor, with little or no credit. I was "sub-prime" because I had filed chapter 7. I signed a contract with pre-computed interest of 21.59%, including comprehensive/collision insurance, calling for 24 monthly payments of $354.04. These monthly payments represented almost half my monthly income; however, I needed a car so I decided to tighten my belt for 24 months and buy the car. I purchased a 1999 Honda Civic (4-door) from Dale Auto Sales in February of 2004.

Included in my monthly payments was comprehensive/collision coverage with Westlake as the beneficiary. This coverage was required by the contract that I signed with them. After six months, my monthly payments were increased, without prior notice or explanation, from $354.04 to $402.48. In California a finance company is required to explain completely any additions to a pre-calculated contract. When I asked a company representative about the increase, I was told it had something to do with comprehensive/collision insurance and that it was "company policy". Based upon what he didn't say I assumed that the insurance, which was supposed to be included in my monthly payments, was the cause of the increase in my monthly payments-so I went to an outside source for my coverage-but my monthly payments did not go down.

Now I'm stuck. I'm trying to pay for the car, and having to pay insurance payments as well. I am drowning and I often have to choose between buying the clothing and things my children need and paying utility bills. I think this company engages in predatory lending.

Maria
Hope Mills, North Carolina
U.S.A.