Consumer complaint received 2018-04-29
Company: STATE FARM BANK, FSB
State: CA
Product: Payday loan, title loan, or personal loan
Sub-product: Title loan
Issue: Problem with the payoff process at the end of the loan

Complaint:
XX/XX/XXXX - I talked to XXXX to get pay-off amount for my car loan. She gave me wiring information and several payment options that will determine the Release of Lien from 2 days to 10 days. I needed the title expedited so I did my XXXX ACH transfer XX/XX/XXXX with expected delivery XX/XX/XXXX. I remitted {$10.00} extra for overnight delivery. I told her also, since the loan will be paid off on the XXXX, I will put a stop payment on their next ACH as they pull out monthly payment from our account every XXXX of the month. 

XX/XX/XXXX- With no title in sight, I checked my bank account. Money has been deducted. I called State Farm Bank and talked to XXXX who said my loan still outstanding and my XX/XX/XXXX payment was returned unpaid due to " Insufficent Funds '' ( Note this stop payment was pre-arranged a full payment was made XX/XX/XXXX. I was asked to go back to XXXX to verify transfer. XXXX confirmed transfer was completed XX/XX/XXXX. 

I called again XX/XX/XXXX and talked this time to XXXX who said they are not showing any payment received from their Loan Services Paid File Room. He gave me three options to proceed : 1. Ask for Research which will take 3-5 days. 2. Go back to XXXX XXXX 3. Call their Bank Loan Center tomorrow. I asked to talk to a Supervisor and he gave me XXXX who basically repeated only what XXXX said. 

XX/XX/XXXX - I called XXXX in the morning to check if he found my payment. He said No and asked me to go back to XXXX to get in writing so they can initiate research. I sent him a copy of ACH Transfer confirmation from XXXX confirming funds sent XX/XX/XXXX to be delivered XX/XX/XXXX. I asked to escalate issue with Supervisor and after repeating myself all over to XXXX XXXX, he told me the same thing and reiterated their policy of holding release for 10 days even if paid by ACH transfer. I gave him the amount of {$13000.00} to look for and asked him to look into why my ACH can not be found after 8 days. I also requested a report of investigation which he said another department, Recovery Team will do and that there are other customers ahead of me. 

About XXXX XX/XX/XXXX, XXXX called to say they found payment! That here was an error! That nobody posted the payment! That they will investigate if this was human error or technical! I asked to talk to Sup XXXX XXXX and asked him to just resolve the issue and expedite the title to me. Instead of making correction, he again reiterated their policy of 10 days with the only exception of Wire transfer or CAshier 's Check. Please note this supervisor have no initiative to resolve the issue.. All he did was cover up and justify their errors! Exasperated with all wasted time, I called XXXX from Recovery Team for Investigation report but call went to recorder and no report has been received. 
AS ofXX/XX/XXXX, no Release of Lien or Title has been received! 

Issues : 1. Gross Negligence - They allow payments to float and not get proper credit when due. {$13000.00} is a substantial amount to be left unchecked.

2. Unfair Business Practices - This is so unfair to consumers who have no recourse if policy comes from top management Consumers are left at the bank 's mercy.

3. Predatory Lending - benefits the lender and ignores and hinders the borrower 's ability to pay.

Company response to consumer: Closed with explanation