Consumer complaint received 2023-02-01
Company: OneMain Finance Corporation
State: TX
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
XXXX XXXX XXXX ONE MAIN FINANCIAL XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX dated XX/XX/XXXX. 

In XX/XX/XXXX, I applied for a personal loan to get better terms on a title loan with outrageous terms and over 1000 % interest. I was mislead during the process with another business and just wanted a decent interest rate and a set term to repay the debt. I applied to One Main financial online. I was contacted by the XXXX office and told I was accepted for a loan. General terms were mentioned on the call but nothing could be provided or discussed without a sit down face to face meeting. I made appointment with XXXX, and met with her on XX/XX/XXXX, at the address in XXXXXXXX XXXX She provided the terms and optional coverages. She gave me a printed copy of the disclosures, Truth in Lending, Loan Terms, Arbitration Agreement, total 6 pages. A loan offer summary, same date and loan number. Loan proceeds disbursements authorization form, same date and loan number. A copy of application for loan with addendum to application, completed online, 4 pages. Truth in lending insurance disclosure, same date and loan number which was refused as optional. Statement regarding Debt Consolidation same date and loan number, ( statement only, not signed or numbered as part of loan documents ), 3 pages of documentation on sharing personal information between financial companies, what they share, and things you can limit. A copy of Credit Report generated by OneMain, giving me my score and general information. A information sheet describing DAILY SIMPLE INTEREST, how it works and how it is calculated. A information sheet describing OneMain Financial Customer Referral Program Terms and Conditions. 3 pages, Optional Product Choices, not signed, description of each product offered, ( refused all optional products ), ELECTRONIC Consent agreement, UNSIGNED.

ALL THE ABOVE NOTED DOCUMENTS ARE UPLOADED IN THIS COMPLAINT After signing documents, I was asked to wait while they initiated the payoff of my car, and initiated the cash advance to my bank account. Then XXXX came to say, I needed to contact my insurance company to reduce my deductible on my full coverage insurance to a lower deductible to finish the loan. This was not discussed and they had my insurance information prior to signing the loan documents. I was caught off guard and I simply called my insurance and made the requested change and added OneMain as a Lien holder as they required the car as collateral. This increased my premium on my insurance. Not something I anticipated or was informed about till after documents were signed. It was inconvenient and upsetting but I let it slide. 

I made my first payment and each months payment well ahead of the monthly due date of the XXXX XXXX of every month. The following are the dates of all payments made on this loan XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX early payment ) All statements documents are also uploaded in this complaint. 

I began to see the principal and interest figures did not appear to be correct. As normally a loan first payments will be higher interest and lower principal reduction. This slowly changes over time as a general rule. These figures did not follow that pattern. I questioned the local office in a phone call, and was not successful in getting any info, and referred to the main ONEMAIN Financial offices. 

I contacted customer service and had a gentleman look over the documents, noting first that the truth in lending sheet states Amount financed is {$5000.00} APR 30.37 % for 48 months {$180.00} by XXXX of each month. SHOWING IN THE BOXES UNDER SECTION A. TRUTH IN LENDING DISCLOSURES. 

However on Page 4 under INTEREST BEARING LOAN, states principal plus interest computed on the daily unpaid principal balance as set forth below THE CASH ADVANCE IS {$5100.00} the annual rate of interest is : 29.16 % on the unpaid principal balance Then a statement below this of how interest is computed applying a single equivalent daily rate under Texas Finance Code. This interest rate may not be the same as the APR. You figure the Finance Charge by applying the true daily earnings method as defined by the Texas Finance Code to the unpaid portion of the cash advance. You base the Finance Charge and Total of Payments as if I will make each payment on the day it is due. You will apply payments on the date they are received. This may result in a different Finance Charge or Total of Payments. My final payment may be larger or smaller than my regular payment. 

This interest rate is the Contract Rate.

All payments will be applied in the following order. First comes other charges provided for in Agreement or allowed by law and late charges. Second comes interest accrued to the date the payment is received and applied by Lender. Third, any remainder goes to the unpaid Principal balance. If I pay early, more of the payment will go to the unpaid Principal balance. If I pay late or miss payments, more of the payment will go to interest. This will delay my Principal reduction and cost me more.

PRINCIPAL. principal is the total of the Amount Financed plus any Prepaid Finance Charges that I have financed. Principal does not include late charges or returned check charges. The amount of Principal is {$5100.00} The gentleman with OneMain reviewing the documents sees the irregularity and is also confused. I then ask him about the principal and interest variation and not being more in line with expectations on any loan reductions in interest charges accruing and in reduction of principal! No rhyme or reason to the fluctuation. He then begins to get frustrated with me insisting on getting an explanation and there is no resolution. A few days later I get a call from a senior manager who says he is calling to answer any questions and resolve my inquiries. He is very rude, dismissive and absolutely no help, as he insists this is all normal practice. The holidays come and Im dealing with many issues, including health related. I drop this issue and continue to make payments from my checking account direct to OneMain before my due date every month! 

On XX/XX/XXXX, I remove a security freeze on my credit for a one week period to apply for credit Im interested in to get lower interest rates for other purposes. I come across a offer for a loan with ONEMAIN at a interest rate of 22 % to 28 %. So I apply just like any first time applicant would. Did not state anywhere on loan application of intended combining a current loan or amount of any credit line amount needed. I was contacted about 4 days later by a XXXX, from ONEMAIN from XXXX office. She says I was approved. Tells me it will pay off my current loan and then offered a large cash advance payment! I told her I was not asking to combine the loan and it was a application for credit as a stand alone! She seems confused and I ask if the manager is there. She is not and says they will call me back! Another couple of days, XXXX the branch manager tries to call and leaves a voicemail message to return the call. I return the call on XX/XX/XXXX. I originally get XXXX again and after conversation I ask for XXXX. After a few minutes XXXX and I go over the offer verbally. 
These are notes from that conversation. 

Says approved for Secured up to {$14000.00} 57 months interest 22.77 %. OR UNSECURED up to {$10000.00} 57 months interest 25.17 % Requires {$500.00} minimum cash advance to get loan. 

XXXX then asks what my goal is, get unsecured, lowest interest rate, shortest term to get less than 30 % interest loan re financed! 

Then offers this 36 months {$5200.00} loan payoff + {$500.00} cash advance, interest XXXX payment XXXX depending on optional coverage OR 24 months {$5200.00} loan payoff+ {$500.00} cash advance interest XXXX payments $ XXXX depending on optional coverage STATES NO ADMINISTRATIVE FEE AS IN XXXX XXXX 

Im thinking I get title back, says should take approximately 30-45 days to receive from state mailed to me, can drop added insurance coverage they demanded after loan documents signed, its unsecured loan, would be slightly less interest for a shorter term 24 months, not 48. 

End of conversation set appointment for XXXXXXXX XXXX XX/XX/XXXX same day! Get call from XXXX a hour later message to call her unknown reason! 

Then after requesting a sit down appointment only option to see terms at XXXX XXXX her office, she calls back to say she misstated the interest rates. XX/XX/XXXX at XXXX XXXX I go in at XXXX XXXX  to the office with my original loan documents and my notebook with details I took down during phone conversation and we enter a cubicle! 

First she states what interest rates are for the unsecured option. In phone conversation of today the rates were XXXX secured up to {$14000.00}, 57 months 22.77 % pymts XXXX Unsecured {$10000.00}, 57 months 25.17 % interest pymts XXXX Then XXXX gets on phone , she is branch manager gives these figures Unsecured {$5200.00} 36 months interest XXXX pymt XXXX Unsecured {$5200.00} 24 months interest XXXX pymt XXXX Now Im in her office the rate is {$5200.00}, 24 months, interest XXXX payments XXXX no optional coverages selected! 

I ask why the changes in interest rates, creditworthiness? She says less interest if you get optional coverages. Document says optional coverage has no effect on impact on loan decision. 

All this discussion before we discuss loan documents. 

XXXX Ask what product and terms Im interested in? Lowest interest rate shortest term unsecured so I get my title back since the only option is all Im offered to payoff old loan and take minimum of {$500.00} cash. Only option, will return {$500.00} cash as a payment against principal when received is my intention!

Has me choose options on a computer screen, such as term, 24 months, secured or unsecured, credit protection options. I choose minimum loan amount, 24 months, unsecured, no credit protection option. Did not sign or initial anything and no printed documents to review after 30 minutes. Then she asked for my bank account or debit card, why havent accepted the loan and havent looked at documents? Says its required to print the documents? Ok I gave my debit card, again stating it will be coming straight back as I have no need for {$500.00} cash! Next she arrives with intention of making me read from her computer monitor. I said Im elderly and XXXX and this is uncomfortable I prefer in writing on paper so I can comfortably read them. She argues that is their process to review loan documents! She is starting to get angry and frustrated and I notice she is shaking in her hands holding her paperwork. She informs me on two occasions we need to be professional, and that I am not obligated to continue at any time! I see the red flags clearly but stay respectful and ask for what I need to complete the review!

The first set of printed documents comes back in with her! The first page is a loan agreement and disclosure statement, including the section A TRUTH IN LENDING DISCLOSURE.

APR 29.36 % Finance charge XXXX. Amount financed {$5200.00} TOTAL OF PAYMENTS IF ALL PAYMENTS AS SCHEDULED {$7100.00} 1st payment XXXX due XX/XX/XXXX, then 23 payments {$290.00} monthly beginning XX/XX/XXXX. 

Prepayment : if I pay off early I will not have to pay a penalty for prepaying all or part of a loans principal balance I WILL NOT get a refund or credit of part of the finance charge for a prepayment in full. I WILL NOT receive a refund or credit for a partial prepayment. 

ITEMIZATION OF AMOUNT FINANCED Line 21 {$4700.00}. Paid to AMT PAID ON PRIOR ACCOUNT WITH LENDER XXXX ( not full account number, playing a game here, same account number for two loan documents dates, and terms completely different ) LINE 25 {$4700.00}. Total paid on prior accounts w lender Amounts paid to me Line 26 {$500.00} paid to XXXX XXXXXXXX XXXX Total amount financed {$5200.00} Prepaid finance charges {$0.00} The reverse side page 2 shows date of loan XX/XX/XXXX, date finance charge begins to accrue. Then provides terms and conditions very questionable in nature but general terms not specific to my loan with any notations indicated other than standard. 

The 2nd document is titled Loan Offer summary! I notice both these documents although both dated XX/XX/XXXX, have my same loan number as I signed on XX/XX/XXXX. FISHY! 

This document states my account number XXXX, dated XX/XX/XXXX my name and the following statement I have carefully reviewed the terms of this loan offer. I will obtain all changes in writing before I sign my loan documents. 

THEY REFUSED ME A COPY OF THE DOCUMENTS TO BE PRINTED TO READ, INITIALLY, THEN REFUSED TO LET ME KEEP A COPY OF ANY DOCUMENTS I LOOKED OVER WHILE THERE! THE ONLY DOCUMENTS I WAS ALLOWED TO KEEP IS YOUR CREDIT SCORE AND PRICE YOU PAY FOR CREDIT, XXXX XXXXXXXX is not accurate! 2 Pages 2nd page illegible.

ONEMAIN NOTICE OF PERSONAL INFORMATION USE 2 pages 2nd page illegible.

DAILY SIMPLE INTEREST AN EXPLANATION 1 page Copies of monthly statements on original loan dated XX/XX/XXXX same loan number as this new loan paperwork. 
XX/XX/XXXX loan date. Statement date XX/XX/XXXX. Monthly payment {$180.00} interest rate 29.16 %. Maturity date XX/XX/XXXX. Payment due date XX/XX/XXXX THIS STATEMENT IS THE FIRST GENERATED WITH DUE DATE XX/XX/XXXX showing loan balance of {$5100.00}. 
Statement dated XX/XX/XXXX. Showing activity XX/XX/XXXX payment {$180.00}. Principal XXXX XXXX {$90.00}. 
New loan balance {$5000.00} Statement dated XX/XX/XXXX. Activity XX/XX/XXXX payment XXXX. Principal {$61.00} Interest {$120.00} New loan balance {$4900.00} Statement dated XX/XX/XXXX. Activity XX/XX/XXXX. XXXX {$180.00}. Principal {$62.00} Interest {$120.00}. New loan balance {$4900.00} Statement dated XX/XX/XXXX Activity XX/XX/XXXX payment {$180.00}. Principal {$56.00} Interest {$120.00}. New loan balance {$4800.00} Statement dated XX/XX/XXXX. Activity XX/XX/XXXX Payment XXXX principal {$69.00}, interest {$110.00}, new loan balance {$4700.00} Made XX/XX/XXXX payment on XX/XX/XXXX, no statement to show principal, interest, new loan balance XXXX says prints on the XXXX of month. SO HOW DID YOU GET MY LOAN BALANCE FOR THE CONTRACT WE ARE LOOKING AT? She returns with a payment receipt showing my current loan number date XX/XX/XXXX payment {$180.00} principal {$71.00}. Interest {$110.00} new loan balance {$4700.00}. With * stating THIS IS NOT YOUR PAYOFF AMOUNT. Please contact us for full payoff. 
The last document she allows me to take is a payoff statement, I did not request. Dated XX/XX/XXXX. With account number showing XXXX, note underneath says ( Please Include full 8- digit account number when forwarding payoff funds. The account number can be located on each monthly statement. ). This shows payoff good for XX/XX/XXXX only! Says {$4700.00}. Says per diem ( daily ) Interest {$3.00}. CONDITIONS BEGIN AND CONTINUE ON THE BACK SIDE OF PAGE 13 Items total, and 2nd separate page, CODES ABBREVIATED. BELOW. XXXX. B. ( Indicates INTEREST. XXXX L ( Indicates ADD 1 int due ). XXXX XXXX ( Indicates Payoff before Optional Refunds ). Then adjusted net XXXX. {$4700.00}. Requester XXXX XXXX XXXX. BY XXXX XXXX XXXX. Reason Why. General inquiry ( NO BECAUSE YOUR NOT GIVING ME CORRECT PAYOFF ON A NEW LOAN FIGURE, keeping same loan number from current loan and preying on my intelligence to entice me to sign new loan documents hoping I fall for it and dont question your unethical practices, while you break the law! PREADTORY LENDING, fraud, etc!

In closing please understand I have never been late on any payment with this company, since XXXX, paid early every month. Tried to ask questions about {$100.00} admin fee that was left off truth in lending disclosure, but Ive been paying interest on but not on 1st page truth in lending disclosure when I signed in XX/XX/XXXX. Then try to discuss issues with fluctuations in interest and principal with local office and main office headquarters, even with a account manager who called but no resolution just excuses and everything is normal, you signed documents! Now I apply for a XXXX % interest rate without mention of refinance by in good standing customer loan and get another lie, fraud, changing rates, changing terms, cant give me printed documents to read and refused to let me take them home! Cant provide a statement on payment of XX/XX/XXXX and incorrect payoff statement and fraudulent new loan balance starting figure. THIS IS ILLEGAL AND PREDATORY! 


My solution I seek is wanting my loan paid in full and my title cleared and returned to me in my name only no lien holder.

I will speak to investigators at anytime, testify to facts and have other proof of my facts, including evidence not disclosed at this time, if needed. I will fully participate in any investigation to the fullest and hope that this issue can be addressed and halted as it is very dangerous and mentally and physically exhausting and damaging. Thank you in advance for your consideration and prompt attention to this matter.

Company response to consumer: Closed with explanation