Consumer complaint received 2020-08-24
Company: Bliksum, LLC
State: CA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
LoanMe , Inc . 
XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, CA XXXX After viewing the website, I was called. 

I was offered a loan of {$75000.00} on or about XX/XX/2020. 

My intensions were to payoff the loan in 8 months. I didn't understand that I was being charge a loan origination fee of {$7500.00}. Plus an exorbitant interest charge of 79 %. No one would ever agree to such a loan. 

Four months of {$4900.00} have been automatically withdrawn from my checking account. When my Office Manager Reconciled and compared the withdrawals with the amortization scheduled she realized that all the money was applied to the Interest. At that point, she brought it to my attention. 
I have reached out to LoanMe, they told me that the Loan is the Loan that they couldn't do anything. I asked to speak with a manager. I have since had numerous conversations with the Manager of the Loans Department XXXX. 
She said she makes the final decision on Loans. She has no Supervisor. 

She keeps reiterating that all I can do is payoff the loan. That they will not reduce the balance by any portion of the Interest or Origination fee. The other option is to provide Bank Statements and offer a Settlement. The Settlement is not a guarantee and it will damage my  credit. 

After much effort, dismay and shock, I was left with no alternative but to payoff {$78000.00} today, XX/XX/2020, despite of any hardship that this will cause my company. Especially today in these trying circumstances. 

I made reference to the below Article California Interest Rate Law, that I found online, when I searched Exorbitant Interest. XXXX claims that it doesn't apply to our loan. 

It is hoped that you can assist me in re-cooperating some of the money that I was robbed of. Also that this company will investigated and be shut down. I can only imagine how many other individuals have been robbed. 


Sincerely California Interest Rate Laws Laws relating to interest rates in the State of California are dealt under various Statutes. According to Article XV ( Usury ) of the Constitution of the State of California, Section 1, the maximum rate of interest upon the loan or forbearance of any money, goods or things shall be seven percent per annum. At the same time, if parties agree upon in writing then the interest rate shall not exceed 10 percent per annum. As described in California Code, Uncodified Initiative Measures and Statutes 1919-1 Section 3, any person, company, association or corporation, who had paid any greater sum or value for any loan or forbearance than allowed under the law can recover treble the amount of the money so paid from any person, company, association or corporation who received such interest illegally. Under the same Section, any person who willfully  makes or negotiates for a loan of money, whereby s/he directly or indirectly charges interest for such loans in excess of that allowed by law, shall be punishable by imprisonment in the state prison for not more than five years or in the county jail for not more than one year.

Company response to consumer: Closed with explanation