Consumer complaint received 2019-06-27
Company: OpenRoad Lending
State: SC
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:
I sought to refinance my car loan through Open Road Lending. Over the phone on XX/XX/XXXX I was told that the refinance loan funded that date and that the check was mailed to my prior lender, XXXX, who could expect to receive the payoff check in two days. On XX/XX/XXXX XXXX still had not received the check although I was being charged interest finance charges on the new loan as of XX/XX/XXXX, and also being charged finance charges and interest, and now also late fees by XXXX because the payment was due on XX/XX/XXXX on the original loan. On XX/XX/XXXX I contacted Open Road asking for the status of the payoff to XXXX, and hours later Open Road reported that they mailed the check that day, XX/XX/XXXX, to be delivered by XX/XX/XXXX. XXXX claims a 10 day process time for payoffs and is charging me late charges and interest and threatening adverse credit reporting. I asked Open Road to either revise the loan document to reflect a loan as of XX/XX/XXXX, the date the loan check was cut and mailed, or to refund me the finance charges accruing on their loan since XX/XX/XXXX, given that they forgot to mail the payoff check to XXXX. I also asked them to refund me my late charges by XXXX, which has been charging late fees now since XX/XX/XXXX, and for guidance on how I am supposed to now make TWO CAR LOAN PAYMENTS to two different lenders in the interim, and advised them that they can not switch the title as lender from XXXX while that company has an active loan and security interest. They also switched my car insurance to benefit them as the lender, not XXXX, even though it'll be another 10 days before XXXX processes the loan payoff. This all seems highly unlawful to me to charge interest on a loan 10 days before it was actually funded. 

Additional complaints about Open Road : Open Road also tried to add " GAP '' insurance to the loan without asking me first, for {$800.00}, and then flat out lied in an email saying that we discussed it when we did not. And dithered on removing that coverage while stating that adding the GAP charge to my loan " wouldn't it be easier to finance the {$800.00} NOW then to have to come up with the {$1200.00} later. But let 's look at the odds that I would I have to come up with that later. That GAP does not come into play at all unless : ( 1 ) I completely total the car ; ( 2 ) within the next 6 or 8 months before the loan is paid down below that GAP ; ( 3 ) the totalling of the car is entirely my fault and not the other driver 's ; and ( 4 ) only if my car insurance does not cover the GAP by paying the loan value ( which is a policy caveat that only costs a few dollars to add ). So I find that extremely shady to add that and then hem and haw to remove it, and rationalize it as though I will have to come up with {$1200.00} so might as well finance it now to HELP ME OUT. 

Open Road also wanted to " lower my payment '' by extended out the length of the refi back to its original 72 months and I had to insist in order to get a 60 month payment plan. 

Open Road also then assigned the loan to XXXX XXXX, who seems to have no website for making payments, but charges a late fee immediately on the day following the payment due date. And the payments must be sent by snail mail and also be attached to the CURRENT monthly payment stub which is only mailed out in the current account statement, thus creating plenty of opportunity for a late payment to occur while I am waiting for the correct stub in the mail and then sending the check for payment back " attached to the statement '' ( they also don't even enclose an envelope ). 

All of this is highly questionable and I will be refinancing again ASAP. In the interim I do not think I should be paying finance charges on a car loan that did not exist on the " funding date '' or even for another 10 days because they forgot to fund the loan.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with monetary relief