Consumer complaint received 2022-03-07
Company: Siggi LLC
State: VA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
XX/XX/XXXX to present date XX/XX/XXXX Amounts : XX/XX/XXXX could not obtain XX/XX/XXXX could not obtain on there website XX/XX/XXXX {$3900.00} amount given interest 35.95 % after payoff total {$6000.00} principal {$4200.00} prepaid finance charge {$310.00} finance charge {$2000.00} XX/XX/XXXX {$2600.00} amount given interest 35.95 % principal {$2800.00} prepaid finance charge {$210.00} finance charge {$1000.00} total payoff amount {$3600.00} XX/XX/XXXX {$4500.00} amount given interest 35.95 % principal {$4900.00} prepaid finance charge {$360.00} finance charge {$2100.00} total pay off amount {$6700.00} Current XX/XX/XXXX {$3400.00} amount interest 21.95 % loan balance as of XX/XX/XXXX {$1100.00} The loan company Omni Financial LLC had a lawsuit against them and they didnt want to continue with court because they know they would have lost due to the findings with their illegal activities. In finding this the consent order found they were in law violation in the conditioning loans to the service members on repayment by allotment, in violation of the MLA and so forth. I am writing a complaint because in reading this I was not informed via mail or email of the changes obtaining to the allotment and should have been notified of the conditions surrounding the fact to continue with the allotment to be notified and was not. Also with the MLA protection they have illegally charged us at the interest rate that of a regular payment ach should have been and have not abided by that. It states in the finding and conclusion as to omni allotment practice section 7 among these protections the MLA makes it ILLEGAL for a creditor such as Omni during the relevant period ( XXXX XXXX XX/XX/XXXX now time frame ) to extend consumer credit to covered members or their dependents if the creditor Requires them to repay by allotment. 10 U.S.C 987 ( e ) ( 6 ) in this section they have violated that during the time frame given was paying the company back via allotment and therefore violation occurred and paid back an extreme amount of funds which was illegal of them to do. Also section 10 state when XXXX XXXX servicmembers and XXXX XXXX members who are covered members apply for loans from Omni, Omni employees tell the covered members that in order to get the loan they must repay allotmentand that is what was done without informing us otherwise of different payment methods. The next section states Omni has benefited from this practice because allotment system helps guarantee payment on unsecured loans meaning that borrowers who repay by allotment have lower delinquency and default rates. And affected consumers have been harmed in the amount of interest and fees paid because they were wrongfully deprived of the option to pay by means other than allotment. Therefore Omni violated the MLA. So in regards to this they violated and kept myself paying through allotment so they can have the interest rate so high and benefit themselves with the extra funds that they could profit. In section 23 of the conduct provisions it states that Omni may not violate the consent order including by conditioning a loan to a borrower who is a covered member under the MLA on that covered member agreement to repay by allotment or 15 U.S.C 1693k ( 1 ) by conditioning any loan on a borrowers agreement to repay by preauthorized eft. They have in this case violated this notice by still allowing the allotment payments to process through. This was a violation. Also 24. States Omni must contact in writing which may be electronic to each borrower who has a loan with an outstanding balance and who as of the effective date is repaying his or her loan by allotment and clearly and prominently : inform the borrower of this consent order and provide a summary of the bureaus findings and conclusions, inform the borrower that the borrower may choose to repay loan using a different repayment method, list all repayment methods available to the borrower and provide a method by which the borrower may elect an alternative repayment option. This was not informed to myself and therefore violated the order because it states may not draft the bank account of a borrower who has an outstanding loan as of the effective date unless Omni obtains a new authorization to draft the bank account and the new authorization must be in writing, which may be electronic and signed by the consumer. This was not the case no notification via mail or email was given. In section 26 may not accept a payment by allotment without first obtaining authorization that is signed by the consumer to repay by allotment. Such authorization which may be electronic must be in a document that is separate from the loan contract document and any other document and must be clearly and prominently disclose to the consumer that repayment by allotment is optional and that the consumer may change his or her repayment method at any time. This was never notified to myself and therefore they did not follow this section because they have continually taken payments via allotment without my consent since this effective date. Therefore violation occurred with Omni.

This company has not only lied and deceived so many individuals including myself but has continued to abuse the system and has not abided the rules and continued to take via allotment without consent and informed myself of this order but is also violating the covered members law/rule since I am qualified and covered and has been keeping the interest rate way above what is legally allowed since I have been repaying this business via allotment since XXXX to present XX/XX/XXXX. I was not contacted in regards to being able to change my payment method and therefore feel they have stole more than I owed since I was not given a choice and was given the maximum interest rate. I had allotment set up to make sure payments were good and they had kept interest rate at just below the maximum 36 % interest rate for the MLA law. But appears that since I had allotment this last was broken and they also violated this consent order. I want to see this issue taken to court because they would lose this case and why they have done to not only myself and to the many others is illegal and messed up. They have taken thousands of dollars to make a profit for themselves to bank on top of the payment that I understand comes out to repay any loan. But this is a military friendly business to serve the military and they have intentionally taken advantage of the service members and myself in this situation and they need to be held accountable for their actions and have this issue not just thrown under the rug but taken to court. I went to speak with the district manager of Omni and informed of this and was informed by him that they did no wrong but all the evidence given shows they are wrong and they are guilty for what they did. Please I urge you to do something about this. They have taken so much and are not taking responsibility for their actions. 
Thank you

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation