Consumer complaint received 2018-11-16
Company: MIDCOUNTRY FINANCIAL CORP
State: CA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
I have several issues with XXXX XXXX, a Division of XXXX XXXX. Their address is XXXX XXXX XXXX XXXX, XXXX XXXX, NV  XXXX. This loan company keeps adding interest monthly on a charged off account raising the balance from {$4000.00} to {$7000.00}. The company does not provide sufficient verification of debt when requested and keeps referring me to a hired collection agency to discuss about the account. There are inconsistencies with their information and information provided by the three credit agencies. I want to resolve this issue and I have disputed XXXX XXXX and the information with all three credit bureaus, but nothing has been done. The credit bureaus have referred me to the CFPB to make a complaint because they do not handle FCRA, SCRA, and any other violations. 

I was a servicemember, XXXX XXXX, stationed in XXXX at the date of this loan on XX/XX/XXXX. I have had previous loans with this company without any problems. However, this specific loan account has been troublesome. I separated from the XXXX in XX/XX/XXXX and received collection letters from this company when I moved back to XXXX. The letters stated I was past due and the account closed in XX/XX/XXXX. This loan started out with a balance of {$4000.00} and was charged off by XX/XX/XXXX with XX/XX/XXXX being reported 120 days late. However, despite being charged off, the balance has grown to {$7000.00} to this date. This company claims to be military friendly and set on helping military personnel. Yet, the account has been charged off and reported negatively since XX/XX/XXXX while the balance keeps rising. 

I have repeatedly attempted to resolve this matter with XXXX XXXX, yet they keep referring me to XXXX XXXX XXXX, a collection agency. The loan is still under XXXX XXXX and not sold to the collection agency. In XX/XX/XXXX, when I was able to speak briefly with the XXXX representatives, they stated that the principal was {$4000.00} and that is what was owed. Then they refered me to XXXX XXXX XXXX, who stated differently that the balance was {$5800.00} for example because interest has been charged on a charged off account. XXXX XXXX XXXX has told me that it is XXXX XXXX that is charging the added interest. When I called XXXX XXXX to speak with a supervisor, they told me that the amount was {$4000.00}, but they add the running interest and that the decision is up to XXXX XXXX XXXX if they collect the amount with the additional interest. When I spoke with XXXX XXXX XXXX and its supervisor, she told me that the balance they have to collect is exactly what XXXX tells them to collect, which is the principal and the running interest even if the account is charged off. To my knowledge, an account cant be charged off by a company and then still have the amount increasing. This company violates FCRA and SCRA protection offered to servicemembers. 

On XX/XX/XXXX I asked for verification of debt through XXXX XXXX XXXX since XXXX XXXX would not oblige. I received only two pages of an online promissory note that did not substantiate verification of debt. No other documents were included to properly verify validity of debt. I thought this to be a mistake by XXXX XXXX XXXX and/or XXXX XXXX and asked once more for verification of debt on XX/XX/XXXX. Again, XXXX XXXX XXXX sent me a two page online version of a promissory note. 
When I called XXXX XXXX XXXX, they told me that it was all the paperwork XXXX XXXX gave them. This promissory note is an online version with no signature. 

There are several discrepancies with the information provided in the promissory note. There is a discrepancy with the account identification. XXXX XXXX XXXX  identified the loan account as the account ending in XXXX on XX/XX/XXXX. According to the credit bureaus, the account is identified XXXX just like its identified by XXXX XXXX XXXX. However, the promissory note labels the account as an account ending in XXXX. It also states another account on the promissory note with a balance of {$1800.00}. This account is identified as # XXXX. There is no clear way of identifying the account. In addition, under the title, " Federal Disclosure Statement, '' in the middle of the promissory note, the annual percentage is highlighted as 35.71 %. However, at the bottom of the note, in the last section, it states that the agreed interest is 33.36 % in small writing. This promissory does not match account numbers with the negatively reported one on the credit bureaus and there are too many inconsistencies.

Company response to consumer: Closed with explanation