Consumer complaint received 2017-10-02
Company: MIDCOUNTRY FINANCIAL CORP
State: VA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem with the payoff process at the end of the loan

Complaint:
XXXX XXXX XXXX have reported on my credit report every 2 weeks for the past year as being 60 days plus late. I have been trying to catch up but you are XXXX me with daily interest of 35 %. I am going to have to go to an attorney now. Either you reflect my account as current or I will have no choice but to seek legal actions. I am in the right because I have made payments every 2 weeks which means you are charged me 70 % interest a month that certainly violates all state laws and the SCRA. 

The representative is rude and unprofessional within the attached email and the inappropriate text in the subject line. I ask for a supervisor or someone over him and was told that was him. I then ask for the phone number to corporate or headquarters and was told to XXXX it. He went on to say that he will try to send me a email plaining explaining the context of my account in which hopefully I am capable of understanding. I asked if he was implying that I do not comprehend and he stated " you said that I did n't ''. Then I asked him if the conversation was being recorded and he stated " no ''. I told him I wish it was so when the conversation is reviewed they can hear what he was saying. I never in my life have felt so disrespected and angered by a lender. 

According to the Military Lending Act the has required me to pay by allotment according to the original contract. However, since I opted not to pay by allotment later within the contract due to financial hardship, it seems as though I am being targeted through my credit with daily compound interest, excessive late charges added, rollover on multiple times, and additional charges. It seems as though XXXX XXXX XXXX takes advantage of the consumer by making sure the consumer does fully understand the term or condition of the financial product or service. The customer service department takes advantage of the consumers frustration and actually initiates verbal conflict with the consumer. XXXX clearly discriminates against certain borrowers and it is apparent in their credit reporting procedures. Regardless, if a consumer like myself has been exercising in good faith to make double payments on two missed payments ; there is no remorse from the lender to apply additional finance charges, late fees, and misrepresent the APR cap. 

However, I find it hypocritical of XXXX XXXX Financial Bill of Rights to state that their goal is to help build credit ; Applications underwritten to ensure a borrowers ability to repay a loan. It is our goal to only offer loans in amounts we believe our customers will be able to repay, without falling into a cycle of debt. We always underwrite applications and perform credit checks that take into consideration an individuals ability to assume a loan. 
Then to add this statement as if they are helping others establish credit when it is apparent that they use it as an abuse tactic ; Credit agency reporting to help borrowers build credit history. XXXX XXXX believes it is important for our customers to establish a positive credit history. We take the time to educate and help customers build credit by reporting fair and accurate information in accordance with The Fair Credit Reporting Act ( FCRA ) that may benefit them in the long term. 
Finally, my last statement from XXXX webpage As the military division of XXXX XXXX, XXXX XXXX is federally regulated. We proudly serve the military, and understand the unique challenges that military life can bring. Our military loans are designed to help you today. However, the lender has only cost military families to gain further debt with their outrageous daily interest and high APR. XXXX is not designed to help unless you are able to pay the debt within 30 days or allotment. I had a previous loan with the lender in which I had an allotment and did not incur additional interest. 
Also, I was reimbursed payments several times with unauthorized drafts from my account, but was still charged NSF/LATE/INTEREST.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation