Consumer complaint received 2021-03-10
Company: Nicholas Financial Inc.
State: OH
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
Before XX/XX/XXXX My husband called Nicholas Financial to inform them his XX/XX/XXXX payment would be paid on XX/XX/XXXX ( which is still within the grace period of 15 days, leap year. ) We were told by the representative that that was fine because this was within our grace period. This is something we have done once or twoce in the past with no issue. On XX/XX/XXXX as promised, the XX/XX/XXXX payment was paid to Nicholas Financial and they informed us our last payment of approx XXXX was due XX/XX/XXXX. 

On XX/XX/XXXX We received a notification of a significant change on our credit report. Upon looking at this we saw that Nicholas  financial had closed our current and 100 % timely paid account and marked it as a charge-off/loss on XX/XX/XXXX. 

We were never informed the account would be closed or for what reason and our account has never been delinquent for the entirety of our loan. The account still has scheduled payments with zero delinquency as our credit report reflects. 
I also noticed multiple dates were used on the last payment date. One says we last paid on XX/XX/XXXX, the other says XX/XX/XXXX ... One report gives no information about or payment details or total loan balance but the other does. 

I contacted the company hoping this was simply a " mistake '' or " error '' but they insisted they intentionally wrote the charge off. I asked them to explain why I never received any notice or a reason for the charge off, and they said they did not have to give me a notice. They informed me they charged off the account because of delinquency, to which I responded that I paid the payment within my grace period and the company was given a courtesy call to inform them they would be receiving the XX/XX/XXXXpayment on XX/XX/XXXX and they confirmed this was no issue because it fell within my grace period. 

After explaining this, the man then informed me that it was an insurance claims loss to which I responded how that was possible? Our car was totaled last year and the remaining balance was to be paid by us by paying our regular monthly payments until the remaining balance was paid in full, which we had been doing since last year. The man went round and round with, coming up with excuse after excuse as to how the charge off ( which is used for severe delinquency with no expectation that the borrower will repay ) was legitimate, to which I knew was not true at all. He even went as far as to say our old contract was null and void, to which I said, if that is the case, then I don't owe you anything, so he changed his mind on pursuing that spin. 

I then asked him why he was still accepting regular and scheduled payments with me to which he replied, because we can. 

I then asked him why the company was writing charge-off 's on open and current accounts knowing these charge-offs are used for tax deductions at the end of the year. I told him this sounded very much like tax fraud to me ... not to mention they had the audacity to offer us another loan whilst destroying my husbands credit, preventing him from obtaining any loan other than through them, which sounded very illegal to me. He responded very coldly to this and said ... 

" You shouldn't even mention the IRS and federal Reserve unless you know what your talking about Trust me, that's not a road you want to go down '' or something along those lines ...

To which I replied, " That is the road I intend to walk and my right. I intend to report you if you admit you are willingly committing fraud. Not only that, you admitted several times this is " company policy '' and " standard practice '' which makes me assume you are doing this to all or at least many of your customers on a regular basis. This sounds illegal and you are refusing to correct it. '' he informed me that " His company doesn't go by Federal Reserve or the credit reporting act, we have our own policy. '' I informed him that his company policy doesn't omit them from the law to which he responded, again, that I didnt know what I was talking about. 

At this point I could sense he was trying to intimidate me and a shouting match pursued. He informed me he would have a compliance officer contact me and hung up the phone ... no one has contacted me. 

I have all of my credit report info screenshots, my contract, and my bank statements to prove my compliance with the loan terms. Which I will not provide to the company at this time as I intend to pursue this legally. 

I have since reported this company to the IRS and FTC as I suspect there is a massive scheme being created by intentionally destroy customers credit so they have no choice but to accept a new loan through Nicholas Financial Inc ( or another equally shady subprime lender ) once the customer is close to paying off their loan. Not to mention regular and massive tax fraud via false/misleading charge-off profit & loss reporting.

Company response to consumer: Closed with explanation