Consumer complaint received 2018-03-13
Company: Harpeth Financial Services, LLC
State: TN
Product: Payday loan, title loan, or personal loan
Sub-product: Title loan
Issue: Charged fees or interest you didn't expect

Complaint:
I obtained a flex loan with XXXX XXXX  on approximately XX/XX/XXXXin the amount of {$4000.00}. This loan was taken with the understanding that it was a higher rate loan, however the repayment terms were not disclosed or explained to me properly. XXXX XXXX  advertises the loans are between the amounts of {$25.00} and {$4000.00}. However, the repayment examples advertised by XXXX XXXX are not for the {$4000.00} flex loans, as I do not feel that they would conduct the volume of business that they do if the examples were for the {$4000.00} flex loan. In addition, XXXX XXXX  does not advertise the repayment examples extended past a fourteen-day period, but extend the repayment terms past fourteen days. The fees applied and the terms of repayment change drastically the longer you maintained the loan. XXXX XXXX list the APR as 279.50 %, however since this is a rate of the cost of the loan ; XXXX XXXX basically charges a percentage every two weeks as a customary fee. For example, in XX/XX/XXXX, I paid {$9500.00} in customary fee, interest in the amount of {$890.00} and total interest charged in the amount of {$10000.00}. These details are reflected on the XX/XX/XXXX statement. That is just for XX/XX/XXXX. On the statement dated XX/XX/XXXX, the following totals are listed : customary fees totaling {$1400.00}, interest totaling {$140.00} and total interest charged in the amount of {$1600.00}.

In XX/XX/XXXX, I was diagnosed with a serious medical condition and contacted XXXX XXXX to request a loan workout. I worked with obtaining documentation that was issued to a XXXX XXXX and subsequently, approved. I add that XXXX XXXX  is the ONLY EMPLOYEE that has been helpful. Unfortunately, I was hospitalized during the workout time period, unable to make contact with anyone, much less XXXX XXXX  to issue payment.

On XX/XX/XXXX, XXXX XXXX  debited my checking account twice totaling {$960.00} ; both debits were in the amount of {$480.00}. When I was not able to receive any information from XXXX XXXX  regarding the two debits, the bank returned one of the debits to XXXX XXXX.

On XX/XX/XXXX, XXXX XXXX debited my checking account twice totaling {$480.00}. The payment specifics are as follows : payment # XXXX  in the amount of {$450.00} and payment # XXXX  in the amount of {$21.00}. Note that the principal amount does not reflect change although two payments were transacted.

On XX/XX/XXXX, XXXX XXXX  debited my checking account twice totaling $ {$890.00}. The payments specifics are as follows : payment # XXXX  in the amount of {$450.00} and payment # XXXX  in the amount of {$440.00}. Note that the principal amount does not reflect change although two payments were transacted.

On XX/XX/XXXX, I issued an email to XXXX XXXX  24/7 requesting written notification of the reasons in which XXXX XXXX  debiting my account multiple times, when the payment should have only debited my account.

On XX/XX/XXXX, XXXX XXXX  debited my checking account twice totaling {$900.00}. The payments specifics are as follows : payment # XXXX  in the amount of {$430.00} and payment # XXXX in the amount of {$460.00}. Note that the principal amount does not reflect change although two payments were transacted.

As of XX/XX/XXXX, I had not received follow up as requested by XXXX XXXX, and thus, I issued an additional email ; which is also attached. In the email issued to XXXX XXXX I again requested written notification of the reasons for XXXX XXXX  debiting my account multiple times.

On XX/XX/XXXX, XXXX XXXX  debited my checking account twice totaling $ {$890.00}. The payments specifics are as follows : payment # XXXX in the amount of {$450.00} and payment # XXXX  in the amount of {$440.00}. Note that the principal amount does not reflect change although two payments were transacted.

As of today, XX/XX/XXXX, I have yet to receive the requested information from XXXX XXXX XXXX.

As of today, XX/XX/XXXX, XXXX XXXX  reflects the following : Payoff Amount : {$3000.00} Principal Balance : XXXX Available Credit : {$1500.00} As mentioned, I have previously issued communication with XXXX XXXX inquiring if the flex loan could be closed to prevent such high interest charges being charged to the account in an attempt to payoff the flex loan. I was notified that was not possible. I was advised that once I paid off the loan and it maintained a {$0.00} balance for specific time period then the loan would automatically close. XXXX XXXX does however, send email notifications and other consumer mailings to notify me of the available credit to borrow. It would appear as though they want a consumer to continue to borrow in order to profit the high interest rates. My vehicle is collateral on the loan and XXXX XXXX  has the title in their possession. So while XXXX XXXX   continues to make money on a flex loan, they also have the title to my vehicle.

Why are these companies not forced to adhere to the state regulated maximum rates set by regulators and not required to prove a customer ability repay a debt based off their own repayment terms? I cant believe that any financial institution would operate under these pretenses. Do you employees get incentives for debiting customers accounts multiple times? It would appear that some type of practice is occurring as the concerns I have expressed and the requests I have issued through multiple emails ; have yet to be addressed. I am happy to provide account statements, email messages issued to XXXX XXXX  and any other requested records.

Lastly, I obtained the loan documents on XX/XX/XXXX, which reflects my electronic signature. There is a ACH acknowledgement datedXX/XX/XXXX that reflects as though it was electronically signed by me. The loan records dated XX/XX/XXXX, so why would there be one datedXX/XX/XXXX with the same exact account information listed on the initial form I signed. How was this form obtained?

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation