Credit Union Times broke a story about an exotic car loan program operated by American First Credit Union in Orange County, California.
American First CU had an indirect lending relationship with Lamborghini of Orange County and had made loans through the dealer for three to four years.
The article references a lawsuit where American First Credit Union is suing a member who defaulted on a 2008 Lamborghini Gallardo, and owes nearly $226,000 plus interest
“For those with loads of disposable income, Gallardo has to be on the sports-car shopping list,” says the Arizona Republic. The manufacturer’s suggested retail price is between $185,000 and $225,000.
Additionally, American First CU is suing Reality TV star Simon Barney, who stars along with wife Tamra in The Real Housewives of Orange County, over a delinquent exotic car loan for a 1989 Ferrari.
Lamborghinis, Ferraris. Is this what the credit union tax exemption is meant to subsidize?
I really don’t believe that the tax exemption should go to finance exotic car loans for those individuals with loads of disposable income.
This is simply outrageous.
You may have a point about this one. However, should these vehicles be financed by a bank that received taxpayer money to survive? I don't think Citibank or Bank of America should finance these cars either since they would not have survived without billions and billions of taxpayer dollars.
ReplyDeleteKeith come on now. It has to be hard to get a $225k car loan. The CU here is simply serving the underserved.
ReplyDeleteYou can't expect Hollywood Celebs to be responsible and pay cash?
Mr. Leggett and his band of merry lobbyist have made certain that credit unions are handicapped in their lending abilities with tight caps on business loans. So while banks are enjoying the benefits of TARP, business loans and alternative capital, is it really such a sin for a credit union to offer an auto loan on a Lamborghini?
ReplyDeleteWhat's that ma'am? You want a loan so your son can get his Ph.D.? I'm sorry. Us credit unions only let you borrow for the cheap stuff. Besides, your son might graduate and become an elitist banker with a blog and we certainly don't need anymore of those.
ReplyDelete