Consumer complaint received 2021-04-13
Company: First Investors Servicing Corporation, Atlanta, GA Branch
State: OK
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Changes in terms mid-deal or after closing

Complaint:
XX/XX/XXXX Initial loan application is made to XXXX XXXX ( " XXXX '' ). Loan approved principle {$21000.00} at 5.17 % interest. I also receive preapproval loan at 4 % interest. I chose XXXX over dealer financing offer for 4.75 % interest + TT & L + new tires + oil change due to the lower 4 % rate. XXXX approves loan at 4 % rate and I agree. XX/XX/XXXX I received email requesting electronic signature for loan at 5.17 % rate @ XXXX. After phone call with XXXX the rate is corrected and approval email at 4 % rate is received @ XXXX. Following email link, the Consumer Loan Agreement was signed @ XXXX ( cosignor ) and @ XXXX ( me ). Due to mistake, the Consumer Loan Agreement stated a rate of 5.17 %, total payments of {$24000.00}. Error gives interest rate which is higher than agreed amount and higher than my alternative financing. The mistake was not immediately noticed. XXXX emailed instructions to claim funds and provide to the dealer. Instructions state dealer must note XXXXs lien on the title file Lien Entry Form. XX/XX/XXXX - Original title still not received, car was registered using the Bill of Sale and late fee was paid. XXXX XXXX recognizing payments are {$20.00} high, I discovered interest rate error while reviewing Consumer Loan Agreement. I contact XXXX, error was acknowledged, and XXXX promised to correct it. I was asked whether I wanted a refund of overpayment or amount credited towards principal. Interest rate not immediately corrected, I assumed XXXX needed time. XX/XX/XXXX I again contact XXXX about issue. XXXX acknowledges error and promises to correct. XX/XX/XXXX I contact XXXX because interest rate issue still remains. XXXX advises they don't have title and their lien is not perfected I apply for duplicate title and wrote down instructions for the lien registration on a note. I believe I requested the title be sent to XXXX. I have handwritten note, no additional proof. For unknown reason, neither party receives duplicate title. XXXX XXXX - Interest rate still no corrected, I contact XXXX. XXXX advises loan being assigned to First Investors ( " FI '' ). I obtain FI contact information from NWB. I call FI, they don't have complete file. FI advises to call back in one month. XXXX./XXXX. XXXX XXXX, account XXXX for FI advises I have obligation to get duplicate title and register lien. I can not sign/register lien form for FI. Consumer Loan Agreement requires I " fully COOPERATE with [ lienholder ] in placing and maintaining your security interest '' and " authorize [ lienholder ] to file a conforming financing statement or other similar document to perfect lien ''. FI denies 4 % interest rate and advises account in default for failure of my OBLIGATION to perfect lien. Interest rate increased to 25 %. All payments made on time and in the amount requested through auto ACH. XX/XX/XXXX FI mails Lien Entry Form via XXXX. 
XX/XX/XXXX lien entry form filed and registered title. Rate never reduced. Rate continues at 25 %. All payments stopped on XX/XX/XXXX. Total amount paid on loan of {$25000.00}. Total payments higher than amount required under original loan. Interest rate bargained for never received. Lienholder refuses to honor rate and raised interest rate to 25 % due to a " failure to comply '' when contract requires cooperation. Cooperation was made although perfection was not timely, no time was required by contract. I used reasonable and best efforts to assist lien perfection. Lienholder never provided agreed rate and used 25 % interest rate in default rather than acceleration as punitive measure to encumber borrower. Lienholder has placed negative credit reporting on borrower and cosignor 's credit. Please note, I acknowledge the lienholder sent notices. I did not receive those notices and the events stated demonstrate my cooperation and the unfairness of treatment I received.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief