Consumer complaint received 2020-03-23
Company: Avant Credit Corporation
State: GA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem with additional add-on products or services

Complaint:
Avant has been making all of my payments deferred payments since change of due date in XX/XX/2018, thus charging more interest for each month. Please see attached : Dear Valued Customer, Thank you for choosing Avant for your personal finance needs. We are sorry to hear that you are dissatisfied with your customer experience. As you are aware, on XX/XX/2018, you were approved for a XXXX installment loan via the Avant Platform. XXXX is the credit issuer for the Avant platform, a closed-end installment loan program, where Avant operates as the administrator and servicer of the program. All applications for XXXX products are considered in accordance with XXXX established credit policy. 

According to our records, on XX/XX/2018, you agreed to change the repayment date for your loan from the XXXX of each month to the XXXX of each month. As a matter of policy, before proceeding with any payment changes on your account, we must receive your authorized consent. Accordingly, during your call on XX/XX/2018 after you requested to change the installment payment due date from the XXXX of each month to the XXXX of each month, you were provided with a verbal interest disclosure that explicitly advised, you will continue to accrue interest based on the unpaid principal during this period. By postponing your regularly scheduled payment you may have a remaining balance after your final installment date '', to which you provided your verbal consent and confirmation. Accordingly, each installment payment was moved as agreed. 

Following this conversation, a confirmation email titled, ATTENTION : Payment Schedule Updated - Avant Customers reiterating that postponing your regularly scheduled payment may result in you having a remaining balance after your final installment date. In addition, please note that you agreed to apply your 10-day grace period to your XX/XX/2018 installment payment. 

Please be advised that XXXX and Avant adamantly deny the use of any deceptive lending practices as all installment loan terms were clearly and fully disclosed on the company website, during the application process, and prominently displayed on your loan agreement prior to signing. As a reminder, the interest on your loan is calculated using the daily simple interest method at a rate of 0.07191781 % per day. This means that interest accrues daily on your loan in an amount calculated by multiplying your outstanding principal balance by your daily rate. Your payments are applied first to outstanding fees, if any, then interest, and then principal. Therefore, any payment deferrals may result in additional interest accruing on your loan. Accordingly, we can confirm that a total of seventeen payments have been deferred and your account will remain open until your loan balance is paid in full. 

Kindly note that, there are no prepayment penalties associated with your loan, and making early or additional payments may assist in paying down your principal balance faster, ultimately decreasing the amount of interest which accrues over the life of his loan. Furthermore, note that your loan is amortized, meaning that the repayment scheduled outlined in his loan agreement is designed to ensure that the loan is paid off on the date of your final installment payment, assuming the outlined repayment schedule is followed. Again, using payment deferments or making late payments may result in a remaining balance following the completion of the final installment payment outlined in your loan agreement. 

We hope that this explanation resolves this matter. We are confident that we comply with all applicable state and federal rules, laws, and regulations. Here at Avant, we go to great lengths to ensure a transparent and customer-focused experience. If you have any questions, feel free to contact our Customer Support Center at XXXX or XXXX. 

Sincerely, Avant -- Avant XXXX XXXX XXXX XXXX, XXXX . XXXX XXXX, IL XXXX Phone : XXXX Fax : XXXX Email : XXXX http : //www.avant.com/ { # XXXX # }

Company response to consumer: Closed with explanation