Consumer complaint received 2018-04-04
Company: MoneyLion Inc.
State: OH
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Received a loan you didn't apply for

Complaint:
I applied for a loan through the Money Lion app in XX/XX/XXXX for a trip that was to occur at the end of XX/XX/XXXX. I was denied the loan ( screenshot attached ) and subsequently did not pursue the trip. Shortly thereafter, I started to receive message notifications from the app that informed me that I had loan documents waiting to be signed. I assumed it was a mistake and ignored the notifications. Note that on XX/XX/XXXX, I received email notification that my email signature had been received for the first loan for which I was subsequently denied. ( attached ). I received no other notifications regarding any email signatures. I continued to receive the notifications so opted to call to see what the deal is. I was informed that I had been approved for a loan that had already been processed. Only I had no money in my account to show for it. I explained to the person I spoke with that I no longer needed the loan and was under the impression that I had been denied. I even asked that they consider the possibility that the e signatures on my original loan application had somehow been used for the new agreement. He explained that I was approved and the money was pending delivery to my account. Since I no longer needed the money, I told him I would prefer just to pay back immediately. He explained that I was now on the hook for the terms of the loan since 3 days had already passed since acceptance. Only I did not sign or accept the terms of this new loan. He explained that I could review the terms of the agreement via my online account and described how I could access the documents. Once I had a chance to review I was floored. The terms of the loan are so insane I can't even believe it's legal. I am to pay 590 % interest rate on a {$2000.00} loan! ( see attached loan documents ) I called back immediately to explain to them that I couldn't fulfill the loan terms without going bankrupt and not paying anything else in the process. I never would have agreed to these terms - who would? If I had that kind of money in the first place, why would I need a loan? It's insanity. They bounced me from person to person and I reexplained the scenario every single time. I was forwarded to a fraud department who emailed me the loan documents with my signature. Meanwhile the money had still not been deposited in my account so was put in touch with another person to trouble shoot that. All the while I'm trying to deny the loan to no avail. It took more than a week for them to figure out that the routing number was wrong in their records and to get the money in my account. By that time, I was behind a payment ( see attached ). Every time I called I was told I would need to fulfill the loan terms and I had no recourse. Meanwhile, I was barely able to make my mortgage payment and bounced numerous automatic payments for which I am still paying on overdraft fees in excess of {$500.00}. My credit has suffered significantly. I have been trying to repair for the better part of 3 years since a very ugly divorce. All the while I have been in contact with XXXX XXXX to work out a resolution. I was finally told by a customer service rep that unless I was in default of my loan ( which I was not - I had managed to make payments on time up through XX/XX/XXXX ) they would not work with me. So, I called in late XX/XX/XXXX to  remove the bank account from which the loan payments were being made. In XX/XX/XXXX after paying {$3100.00} on a {$1900.00} loan - I was in default and my account was referred to the retention department. The run around I received from there has been even more of a joke. Every time I call I'm given a different answer - a different amount to pay off - referred to a different person. I continued to receive emails that I was in default of my loan and pending collections. I responded to one email on XX/XX/XXXX ( see attached ) letting them know that I had no intentions of paying any more on the loan. Despite that communication, {$980.00} was withdrawn from my checking account WITHOUT MY PERMISSION on XX/XX/XXXX.  When I called to complain and inform them that without a judgement they were not allowed to withdraw money from my account, they told me that they were allowed because the dispute had been referred to another department. WHAT? I've had three conversations with a supervisor since that {$980.00} was illegally taken from my account. All three times I was given a different pay off amount to settle my loan agreements. Anything from {$380.00} to {$1000.00}. This came from the same supervisor. Besides being the worst customer service experience of my life, I feel like this borders on illegal activity. It saddens me tremendously that these companies can prey on people who may not have the education or means to fight back. I have learned a very painful and expensive lesson that I will not soon forget. I've tried in earnest to work this out with them directly and have made no progress. Please help me.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief