Consumer complaint received 2023-03-31
Company: Affirm Holdings, Inc
State: TX
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
We applied and were granted credit with Affirm for a purchase through XXXX 's XXXX, the vendor for the tile cutting machine we purchased. The loan was initiated on XX/XX/XXXX for the amount of {$2000.00} and first payment due on XX/XX/XXXX. 

When we were discussing the monthly payments and interest rate, we were informed that it was about 16 %, and that we would receive the loan information sheet, listing the loan amount, interest rate and number of monthly payments due via email. 

In an attempt to lower the extremely high 16 % interest rate being charged, we inquired with the representatives of Affirm if we could make additional principal payments each month to pay down the loan sooner than the schedule 12 months and thus lower the total interest payments without penalty, and were informed that this was an option. We never received a statement or email outlining the monthly payments indicating the amount applied to principal and interest, however proceeded to make payments in excess of the minimum payment due, each on or before the due date ( the XXXX of each month ), In addition to the minimum payments, our account was credited a refund in the amount of {$130.00} on XX/XX/XXXX, at which time our monthly payments were not adjusted to reflect the new financed amount to be {$1900.00}. 

I have an amortization spreadsheet documenting each payment and according to our records, our payments should have reduced interest paid, however in actuality we paid {$460.00} instead of the scheduled {$350.00} which represents an increase of 44.71 % of the original amount of {$350.00} ( 74.7 % ). 

We reached out to Affirm and were told that in order to pay this loan off in full we needed to make the additional payment of {$100.00} to avoid future interest payments. At which point we opted to pay the amount to stop these interest payments and file a complaint/review with your bureau. 

I have a list of our payments, and the initial " loan documents '' from Affirm for your review if needed. I am enclosing each email confirmation for payments made to AFFIRM, along with spreadsheets that identify the regular payments, the payment schedule and payments made for the loan without the refund applied, and one with the refund applied.

Important amounts pertaining to this loan : Loan date Original loan amount Modified loan amount due to refund XX/XX/XXXX {$2000.00} {$1900.00} ( returned initiated on XX/XX/XXXX ) Payments were made on the following dates : XX/XX/XXXX {$300.00} XX/XX/XXXX {$250.00} XX/XX/XXXX {$220.00} XX/XX/XXXX $ XXXX XX/XX/XXXX {$250.00} XX/XX/XXXX {$480.00} XX/XX/XXXX {$250.00} XX/XX/XXXX {$250.00} XX/XX/XXXX {$100.00} [ ***= XX/XX/XXXX {$130.00} adjustment for refund made on XX/XX/XXXX ] Overview : We were not credited the interest we are entitled to receive due to paying the loan in 9 months instead of the 12 months, we were not credited the refund amount of {$130.00} ( applied on XX/XX/XXXX ).

Company response to consumer: Closed with explanation