Consumer complaint received 2019-03-12
Company: Quick Bridge Funding, LLC
State: HI
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Struggling to pay your loan

Complaint:
1. XXXX XXXX XXXX, XXXX, entered into a Business Loan Agreement Merchant Loan with XXXX XXXX XXXX through XXXX XXXX XXXX dba Quick Bridge Funding, with a guarantee from XXXX XXXX, and was purportedly granted a security interest in and lien against all of the Debtors assets. Pursuant to their provisions, the QB Loan Documents are to be governed and construed by the laws of the state of California. The Business Loan Agreement was for XXXX  XXXX XXXX XXXX to receive {$75000.00} ( QB Loan for {$75000.00} ) in funding with a pay back {$92000.00}. In addition to the QB Stated Interest, the Debtor was also required to pay an origination fee of {$2200.00} ( the QB Origination Fee ) to Quick Bridge. Although identified as fees the QB Fees are, in substance, additional interest under the QB Loan. The total cost of the loan being is then calculated at {$94000.00} or {$19000.00} more than the amount borrowed. This loan was to be paid back in 126 daily payments. Considering the 34.5 % of one-year term of the QB Loan, the effective QB Interest rate per annum is approximately 75.36 %. Although the Debtor was advised and expected to be entering into a loan with Quick Bridge, the QB Defendants, using the rent-a-charter scheme, originated and papered the QB Loan through XXXX, a federally-chartered bank. Immediately after funding, XXXX assigned the QB Loan to Quick Bridge. 
2. XXXX XXXX XXXX, XXXX has made 1 payment of {$2200.00} to pay the loan origination fee and 95 payments of {$730.00} and one payment of {$6100.00} for a total repayment of {$75000.00}. 
3. The interest of {$17000.00} was paid by XXXX XXXX XXXX, XXXX to QUICK BRIDGE FUNDING , LLC in the new loan for {$150000.00} and the {$17000.00} being held from the transferred amount. 
4. In connection with the QB Loan, the QUICK BRIDGE FUNDING , LLC charged a usurious interest rate under California law exceeding 7 %. California Code, Civil Code - CIV 1916.5 states, The rate of interest upon the loan or forbearance of any money, goods or things in action or on accounts after demand or judgments rendered in any court of this state, shall be XXXX dollars upon the XXXX XXXX dollars for one year and at that rate for a greater or less sum or for a longer or a shorter time ; but it shall be competent for parties to contract for the payment and receipt of a rate of interest not exceeding XXXX  dollars on the XXXX XXXX dollars for one year and not exceeding that rate for a greater or less sum or for a longer or shorter time, in which case such rate exceeding XXXX dollars on XXXX   XXXX dollars shall be clearly expressed in writing. 
5. The QB Loan documents do not clearly express in writing that the interest rate will exceed XXXX dollars on XXXX XXXX dollars. 
6. The interest rate for the QB Loan for {$75000.00} was 75.36 % or {$19000.00}. If using the maximum interest allowed pursuant to California Code, Civil Code - CIV 1916.5 of 7 % this would be an interest charged of {$5200.00}. This is a difference of {$14000.00}.

Company response to consumer: Closed with explanation