The Fortress Investment Group has agreed to buy American General Finance (AGF) from AIG, a company that specializes in providing car loans, mortgages and financing for retail sales to those with less-than-perfect or bad credit.
The move could mean that a new source for bad credit car loans is just around the corner, should the company become viable again. After the recent financial crisis, many lenders were left in trouble as consumers struggled to pay off their loans and credit scores plummeted.
According to MarketWatch, Fortress may buy up several other struggling lenders and banks in order to rejuvenate the company, which took a substantial hit after AIG’s well-publicized government bailout.
Fortress founder Wesley Edens said in a statement that he hopes the company will begin to lend to those with bad credit in the near future: “AGF is well-positioned for significant growth in an underserved market.”
The bad credit loan market has seen many companies pull out in the wake of the financial disaster, with HSBC and Citigroup stopping subprime lending. If AGF becomes active again, it could mean another option for buyers looking for car loans, mortgages and more.