Associates settles complaints for $20M

Adams, North Carolina Fair Housing Center
Phone (919) 602-1648  

FOR IMMEDIATE RELEASE

2 P.M. September 6, 2001

Consumer advocacy and effective leadership leads to recovery of up to
$20,000,000 for victims of predatory lending

Stella Adams, executive director of the North Carolina Fair Housing Center and leading advocate against The Associates’ predatory lending practices applauds Attorney General Roy Cooper for resolving the predatory lending complaints pending against the former Associates First Capital.

"This is a wonderful result, the Center estimates that over 9,500 North Carolinians will potentially benefit from this settlement agreement," said Adams. "It doesn't take a math major to figure out that this is a terrific agreement."

On Thursday, April 16, 1999, Former Attorney General Mike Easley hosted a press conference to announce the introduction of two bills aimed at curbing abusive lending practices in the subprime lending market. As a senator, Attorney General Roy Cooper sponsored this legislation and now the people of North Carolina will see the direct results of this leadership.

Recognizing that this is a voluntary agreement between the parties Adams acknowledged that Citigroup kept its promise to try and make amends to the people of North Carolina for the practices of the Associates.

"While this is a great step forward as an advocate for the people of North Carolina, I must make it clear that until Citigroup drops mandatory arbitration clauses and prepayment penalties from its subprime loans our struggle continues." Adams, declared. "These practices continue to strip the wealth and the vitality out of our neighborhoods."

I want to thank Attorney General Roy Cooper for his efforts to protect and restore our community wealth. The equity that He has restored to borrowers through this agreement will restore faith in the American Dream of homeownership for many families across this state."

The North Carolina Fair Housing Center will be available to assist people across the state if they have questions about how to receive their refunds. For assistance, call 919 667-0888.