Superbowl Commercials: The Chutzpah Award
Two of the most clever ads on the Superbowl were for Ameriquest. Both showed people in embarrassing positions from which the onlookers drew exactly the wrong inference. The tag line: Don’t judge too quickly.
Ameriquest is a predatory lender that got caught—big time. It has offered a shocking $325 million to settle lawsuits and state investigations in 49 states and the District of Columbia. Right now, 200,000 homeowners—people who were cheated by Ameriquest—must decide whether to take the money or to pursue their own lawsuits. And what is Ameriquest’s response? Not: "We’re sorry." Not: "We promise to be trust-worthy in the future." Not even the all-purpose “mistakes were made.” Nope, their response is a Superbowl ad that says “Don’t judge too quickly.” In other words, it is all a joke, and the wink-wink implication is that they didn’t really do anything very bad.
This is how bold the predators have become. Cheat good people, get caught, and turn it into a clever ad campaign. Perhaps this new business model will become the standard whenever corporate fraud is exposed. Jack Abramoff and his Washington buddies should pay close attention. Ameriquest can lead the way.
Ameriquest is settling documented cases in which sales reps made promises that disappeared when the papers were signed, costs buried in fine print, fees larded on, loan flipping, and sky-high costs. For predators like Ameriquest, cheating homeowners looks like a safe business because, once they have moved in, most owners will agree to anything they can to come up with the money to hang on to the house. Even at $325 million, the settlement won’t be enough to compensate most homeowners, and many are expected to opt out of the settlement in favor of a class action.
Ameriquest has good reason to believe that Americans will overlook a little thing like cheating 200,000 homeowners. After all, George W. Bush is good buddies with the CEO, and, even in the midst of this stink, Bush has nominated him to become ambassador to the Netherlands. Bush evidently understands the virtues of not judging too quickly.
So tell us, Ameriquest, when can we judge? There are at least 200,000 homeowners ready to judge now. And I’m willing to join them.
Good point. I think though, it doesn't take much chutzpah anymore to be predatory and open about it. It is accepted as standard business practice these days. Here in Orange County California, it seems the majority of ads on TV these days are for credit cards or mortgage loans. All of them touting the financial savvy of borrowing and spending. You even get to set up a savings account if you use American Express, the more you spend, the more you save. And people are obviously buying it, the ad has been running for months. Financial ignorance abounds, and banks are cashing in on it.
Prov 22:7
7 The rich rules over the poor,
And the borrower becomes the lender's slave.
NASB
Jim Anderson
www.lighthouseonline.net
February 7, 2006 3:27 PM | Reply | Permalink
So glad to see TPM covering this topic! Mark Winston Griffith runs an anti-predatory lending organization in NYC and blogs about bad lenders and credit card sharks for my blog all the time! http://www.dmiblog.net/archives/2006/01/during_the_tax_season_beware_o.html
Read this on tax rebates and on so called "overdraft protection"
http://www.dmiblog.net/archives/2005/10/banking_department_takes_lead.html
I work in public policy and have a college degree and I still get confused by the fine print on this stuff. I'm glad this issue is getting more attention, there is so much we can do from a regulatory standpoint to stop it both locally and nationally.
February 7, 2006 4:44 PM | Reply | Permalink
I have no love for predatory lenders, but the point of the ads was "Don't judge too quickly-- we won't." As in, "We won't judge your credit-worthiness by one blemish, we'll loan you money anyway at ridiculous interest rates and then squeeze that turnip 'til it bleeds."
February 7, 2006 6:29 PM | Reply | Permalink
Elizabeth, thanks for the informative post. From personal experience I can verify they are still very predatory and lying to potential customers.
If I’m a consumer and want to report this sort of illegal activity, where can I go to make a complaint?
It's amazing how our justice system fails to make these corporations stop. I guess the law means nothing to them.
February 8, 2006 7:41 AM | Reply | Permalink
It’s official!! - Ameriquest is a HUGE winner and “winners take ALL” until there’s a change in the current system . . .“The twentieth century has been characterized by three developments of great political importance: the growth of democracy, the growth of corporate power, and the growth of corporate propaganda as a means of protecting corporate power against democracy.” said propaganda expert, Alex Carey . . . I had difficulty deciding what was more disappointing in the Super Bowl - the Ameriquest commercials or the officiating: 1. Offensive interference against Seattle after pass is caught in the end zone. The touchdown is nullified. . . . 2. Pittsburgh Roethlisberger dives towards the goal line. Either he was stopped short or touchdown. Official rules touchdown. No INDISPUTABLE evidence on viewing instant replay so the call is not overturned. . . .3. Seattle moves ball to Steelers 1 yard line. Holding called against Seahawk tackle. Ball moved back to the 28. Even John Madden griped about that bad call, declaring that a referee could call holding on any play of any game. . . 4. Seahawk pass is intercepted by Pittsburgh Ike Taylor. Hasselbeck dove low to tackle Taylor. A Pittsburgh teammate had to leap over Hasselbeck to avoid his low hit AFTER Taylor went down. Hasselbeck is penalized 15 yards for an illegal block. It was the least significant of the 4 critical calls but the most puzzling. . . "I didn't know we were going to have to play the guys in the striped shirts as well." - Seattle Coach Holmgren . . . Steve in (the other) Washington
February 8, 2006 8:00 AM | Reply | Permalink
JMAC
Dr. Warren, I applaud your efforts to uncover what is hidden. Thanks for your work, there are many who are emulating this process in their own fields of study. 200,000 investors, unbelievable! Imagine the corresponding family consequences: affecting all facets of relationships, increases in domestic violence, divorce, and systematic shaming of individuals in families !
February 8, 2006 6:57 PM | Reply | Permalink