Aqua Finance misled people about financing for home water treatment systems

At some point, most of us will rely on financing to buy the things we need or want. But what happens when financing terms aren’t clear? Or you’re told to expect a monthly payment amount, but end up paying more? That’s not only illegal, but it costs you money and can hurt your credit.

The FTC says that’s what happened to customers of Aqua Finance, Inc. (“AFI”), a finance company offering loans for people to buy home water treatment systems through a network of door-to-door dealers. Thelawsuit says the company’s dealers frequently misled people about AFI’s financing terms, provided paperwork that didn’t clearly explain the financing, targeted older adults and Spanish speakers, and pressured people to sign financing documents they didn’t understand. This led to people paying more than they could afford and caused some to miss payments. And, the FTC says, AFI shared account details with credit bureaus, reporting missed payments and inaccurate information about people’s loans. Reporting negative information hurts people’s credit.

Here's advice for anyone looking to finance a purchase:

• Resist the pressure to act immediately. If someone pressures you to sign documents without clearly explaining the terms, it’s a red flag. Before signing, take your time and talk to someone you trust.
• Ask questions and get details in writing. What are the terms of the financing? How much interest will I pay? What is the annual percentage rate — and will it ever go up? How long will a loan take to pay off? Get specific details of the financing in writing.
• Check your credit report before you finance. Your credit rating plays a big role in how much you’ll pay to borrow money. Mistakes reported on your credit report could lower your credit rating.

If you've experienced aggressive sales tactics or been misled on financing terms, report it to the FTC at ReportFraud.ftc.gov.

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