Auto insurer First Acceptance Corp. on Wednesday completed its acquisition of more than 80 stores marketing nonstandard policies in California from Nationwide Insurance. The Green Hills-based company (Ticker: FAC) paid $34.5 million in cash for the stores, $30 million of which came from an affiliate of its 53 percent shareholder, Gerald Ford, in the form of a loan. From the looks of the 10-year loan, Ford is a pretty good negotiator: First Acceptance is paying 8 percent interest.
Southeast Financial Credit Union has become ensnared in the New York attorney general's case against an Indianapolis company that sells study guides. AG Eric Schneiderman is accusing The College Network of using false and deceptive business practices.
The suit alleges that The College Network charged consumers approximately $500 for each study guide and required prospective students to purchase upfront guides for every course they would need to earn their degree from Excelsior. In many cases, the total cost of the network’s program exceeded $10,000, which forced most consumers to accept the financing offered by The College Network. In addition, in many cases, the network did not disclose that the loans were being provided by Southeast Financial Credit Union.
A spokesman for the Franklin-based credit union, which has about $450 million in assets and last year posted a net loss of $3.1 million, says the institution shouldn't be a co-defendant in the case against The College Network. Read more here.
POSTDATA: WARRANTY DEEDS