SEATTLE (AP) - A new report has found that predatory sales practices and high interest rates charged by a Warren Buffett company often trap mobile-home buyers in untenable contracts.
An investigation ( https://bit.ly/1DuYQ64 ) by The Seattle Times and The Center for Public Integrity found that Clayton Homes builds more than half of the mobile-home industry’s new units and provides more than one-third of the industry’s new loans.
More than a dozen customers of Clayton told the Times and CPI their loan terms sometimes changed after they paid deposits, that they faced surprise fees or were steered to Clayton’s high-interest lenders. A Times/CPI analysis found that 93 percent of Clayton’s mobile-home loans were considered “higher-cost” by federal government standards during the most recent four-year period.
Buffett’s Berkshire Hathaway didn’t respond to requests for comment from the organizations, but Clayton spokeswoman Audrey Saunders said in an emailed statement that Clayton helps people find affordable homes.
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Information from:
The Seattle Times: www.seattletimes.com
Center for Public Integrity: www.publicintegrity.org
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