Consumer complaint received 2019-08-26
Company: COMMUNITY CHOICE FINANCIAL, INC.
State: SC
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Charged fees or interest you didn't expect

Complaint:
My history with Cash Central is as follows : XXXX XX/XX/XXXX : Borrowed {$200.00} ; repaid {$230.00} on XXXX XX/XX/XXXX ... .all fair and above board in this transaction. XXXX XX/XX/XXXX : Borrowed {$250.00} ; Repaid {$290.00} on XXXX XX/XX/XXXX ... all fair and above board in this transaction. Then the predatory lending begins. I am then duped into borrowing {$2500.00} on XXXX XX/XX/XXXX. NOT {$2400.00} but {$2500.00} all so Cash Central can charge whatever fee it chooses. Predatory lending!!! 30 % of {$2500.00} is {$740.00} ; 30 % of {$2500.00} is {$750.00} yet that is not what I was charged On XXXX XX/XX/XXXX, I borrowed {$2500.00}. I then paid on each PAYDAY ( thus making this a payday loan ) : XXXX XX/XX/XXXX : {$190.00} XXXX XX/XX/XXXX : {$190.00} On XXXX XX/XX/XXXX Cash Central stated I could refinance and borrow an additional {$1200.00}. I was now struggling because of the trap I was in with Cash Central. I took the refinance. I now am in for {$3700.00}. 30 % of that amount is {$1100.00} of which I have paid at this time {$380.00} leaving {$720.00} remaining. To pay off loan amounts ( {$2500.00} + {$1200.00} plus 30 % of fees ( {$720.00} XXXX, I owe {$4400.00} at this point. On XXXX XX/XX/XXXX, I paid {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XX/XX/XXXX : {$290.00} ; XXXX XX/XX/XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XX/XX/XXXX : {$290.00} ; XX/XX/XXXX : {$750.00}. At this point, I had paid {$4500.00} which is {$94.00} more than the {$4400.00} owed with the 30 % cap I would have had if the loan had been for {$2.00} less. But my payments continued!!! XXXX XX/XX/XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} ; XXXX XXXX : {$290.00} At this point I had overpaid {$1500.00}!!!!! Cash Central again enticed me with a refinance. I again took it as I was trapped in the Cash Central cycle. With this I had {$100.00} deposited to me on XXXX XX/XX/XXXX. 30 % of {$100.00} is {$30.00} yet Cash Central took so much more!!! XXXX XXXX : {$200.00} ; {$170.00} more than the 30 %!! XXXX XXXX : {$200.00} ... now {$380.00} more. This {$380.00} plus the {$1500.00} means I overpaid {$1900.00} all because Cash Central lent me {$2500.00} NOT {$2400.00}. That {$2.00} cost me nearly {$2000.00}!!!! In my research, I found this information online : The state of California recently finalized a settlement against Community Choice Financial. It accused the business of overcharging borrowers. While Community Choice Financial has a secure website and informative privacy policy, the action taken against the company by the state of California is telling. The lender was ordered to pay {$100000.00} in penalties and refund approximately {$800000.00} to former borrowers. Community Choice Financial and its subsidiaries may operate in a slew of states around the US. But it can get confusing knowing exactly what company youre borrowing from. And its recent government action over unscrupulous lending practices is more than a little disconcerting. More information : A California payday lender is refunding about {$800000.00} to consumers to settle allegations that it steered borrowers into high-interest loans and engaged in other illegal practices, state officials said Monday. I was specifically led into a {$2500.00} loam with the sole intent of getting higher fees from me!!! This was after I had borrowed just {$250.00}!! My findings go on to report : Mondays action, the settlement involves alleged violations regarding administration of payday loans, which are capped at {$300.00}, and the steering of borrowers into consumer loans of more than {$2500.00} to avoid rate caps. California law limits interest on loans of up to {$2400.00} at between 20 percent and 30 percent, but there is no cap for loans of {$2500.00} and larger. Steering consumers into higher-cost loans to circumvent statutory interest rate caps is abusive, said XXXX XXXX XXXX, commissioner of the Department of Business Oversight.  Consumers deserve protection and access to lending markets that are fair, transparent and comply with the law, she said.

Company response to consumer: Closed with explanation