Consumer complaint received 2023-08-19
Company: Tower Loan of Mississippi, Inc.
State: LA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem with additional add-on products or services

Complaint:
TOWER LOAN PREDATORY LENDERS I received a {$1200.00} check in the mail from Tower Loan. I cashed the check & in doing so I agreed to pay the money back as a loan in monthly installments. On the back of the check ( in fine print ) it clearly states no insurance policys could be added to this loan. ( I still have the check as proof ). 
This was not my first encounter with Tower Loan mailing me checks. In the past I had accepted & cashed checks sent from them. I always paid on time & in full until the loans were satisfied. 
But this time was different. Before my first payment was due Tower Loan called stating I was approved for {$500.00} more. She said, Just stop by & sign for it & they'll just add it to the original loan. I didnt think much of it. I went up there- & signed for the additional {$500.00}. 
I failed to realize what actually transpired that day. Actually it was many months later before I realized what they had done! First of all, they lied & produced a receipt which stated I paid off the original {$1200.00} loan in full- although I had not made the first payment yet! 
Instead of adding {$500.00} to my original {$1200.00} loan like we agreed -they completely rewrote the loan. Unbeknown to me they added {$180.00} Accidental Death & Dismemberment Insurance, {$120.00} Credit Life Insurance, {$130.00} Credit Disability Insurance, and {$230.00} Credit Property Insurance. Remember the check I cashed stated no insurance could be added to this loan. The insurance papers do NOT have my signature on them because I would NEVER in a million years pay for all that insurance on this little loan. Thats insane! Who would ever agree to pay an extra {$680.00} in insurance on a {$1200.00} loan? Dismemberment Insurance? Are you serious? They added insurance stating the loan would be paid even if my arm or leg got cut off? Well theyve definitely charged an arm & a leg!

When when I called Tower Loan regarding payoff-The rude manager stated I owed them {$4300.00}. I told him there's no way thats even possible. I only borrowed {$1700.00}! The manager was very rude-he was adamant stating I owed {$4300.00} & I would pay the {$4300.00}. I told him I would pay what I owed but I didnt owe Tower loan {$4300.00}! I told him to do whatever but I would NOT be paying Tower Loan {$4300.00}.

Well next thing I know-there was a sheriff at my door serving me with a subpoena to appear in court.

Tower Loan sued me. They brought 4-5 corporate attorneys to court & of course they succeeded in getting a judgment against me.

I attempted to negotiate with Tower Loan to pay what I actually borrowed but they refused demanding the entire amount in full! 
Ive been a small business owner since XXXX XXXX almost 10 yrs. 
XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX My business is licensed & insured & and maintained an A+ rating with the XXXX XXXX XXXX  the entire time I was a member. 
My credit score is over XXXX. My credit report clearly states 100 % on time payments. I have over XXXX credit cards. I pay my bills! Im ready to buy a home now. But while attempting to begin the application with a loan officer for a mortgage this judgment came up. I was informed that after XXXX yrs of overcoming every obstacle you can imagine & working as hard as I could -I am unable to achieve the American dream of homeownership thanks to Tower Loans judgment against me.

The loan officer brought it to my attn on my credit report it states the loan was " charged off '' yet they theyre still harassing me. And about 8 months ago for the fourth time-a sheriff was beating on my door at XXXX to serve me once again with another subpoena for Motion to Examine Judgment Debtor stating they wanted a judge to allow them to come seize my assets. At court-the judge forced me to surrender all my bank statements for the last 3 years. Tower Loan has garnished my checking account. They have garnished my bank account! They performed hard inquiries every month further damaging my credit, yet my score is still over XXXX even with their judgment, and hard inquiries. 
Tower Loan is a predatory Lender! I have every piece of correspondence from Tower Loan proving every word Ive stated. 
Over a little $ XXXX {$1700.00} loan, these people have ruined my life! They've prevented me from the ability to purchase a home, Ive had to pay much higher interest rates to have any credit, including higher interest on all my credit cards & my car loans. I can't even use my own bank account because they will take my money! Enough is enough. I don't have a problem paying what I borrowed. But I refuse to allow them to bully me anymore! These people need to be stopped. Their own attorney stated to me personally that " Tower Loan isn't gon na stop until someone sue 's them & makes them stop! 
I am ready to for Tower Loan to pay for the tears Ive cried, opportunities Ive lost, the rent Ive had to pay & high interest Ive been forced to pay due to their predatory lending practices! What they are doing is wrong! Its time someone does something about it! Ive worked too hard for Tower Loan to prevent me from even owning a home or enjoying the fruits of my labor!

Company response to consumer: Closed with explanation