Consumer complaint received 2019-09-09
Company: Lendmark Financial Services
State: PA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with the interest rate

Complaint:
I purchased a XXXX XXXX XXXX in XX/XX/XXXX and it was the first vehicle I received a loan for having purchased my previous cars in cash in full. At the time, my credit score was about a 670 and I was told by the dealership ( XXXX XXXX ) that I was being denied by lenders due to me not having a car loan on my credit report already and that despite my credit score not being bad, they denied me. It became a situation where as a single mother I felt hopeless and needed to purchase a vehicle to get back to work. I asked the dealer what options I have. He started out saying maybe instead of putting {$2000.00} down, the lenders would work with me if I put more down. After offering to put {$5000.00} down, the salesman said the lenders still denied me and he would reach out to one last financial institution ( which all of this could've been a scam between the two companies ). When speaking of purchasing the car, the salesman figured that my monthly payments would be around {$150.00} a month since I was only getting about a {$7300.00} loan, offering a sizeable down payment. He told me he would call me when the lender ( Lendmark Financial ) got back to him ( which may have been to discuss how to XXXX me even more and take advantage ). I received a call about an hour later saying there was good news and they would give me the loan. The following day, I went to Lendmark Financial to receive the loan and go back to XXXX to close the deal. Lendmark not only pushed a 60 month payment structure onto me, knowing I wanted 72, but they added on additional products, such as roadside assistance that they made to seem were a requirement and I'm pretty sure they are not and I already have coverage through my insurance carrier. By the time I was done, my payments were figured to be {$310.00} ( more than double of what I expected ) for 60 months, with an interest rate through the roof. For a {$7300.00} loan, Lendmark will receive {$18000.00} from me over 5 years, which is insane and outrageous. I tried to resolve the issue right there in person, but they made it seem as though if I did not sign the paperwork and listen to them, I would not receive my loan that I needed to get to work after my prior car was totaled. No one believes me when I tell them how high my payments are for such a small loan. My credit was not even poor at the time, they just told me my interest rate would be so high because I never had a car loan before which sounds like a load of lies to me. I made a desperate purchase being a single mother that has a long term negative impact on my entire life and would not recommend other people use their services. It seems predatory and should be illegal if it is not. I can send copies of any of the paperwork, if need be. I will voice my opinions about them on social media and other forms of outlets in order to help consumers in the area learn of the dangers of working with them and avoid being taken advantage of. Thank you.

Company response to consumer: Closed with explanation