Consumer complaint received 2021-04-30
Company: Service Finance Holdings, LLC
State: WI
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
I applied for a loan on XX/XX/XXXX through XXXX XXXX XXXX to have work done on a window and door replacement. The loan was financed through Service Finance Company , LLC. 

The loan account was opened XX/XX/XXXX, and I immediately authorized a check for the full amount of the loan XXXX {$6800.00} XXXX. It was delivered on XX/XX/XXXX. I was told verbally payment is due XX/XX/XXXX, and that it was not an interest free loan. I was essentially under the impression that if I didn't pay in full by XX/XX/XXXX, I would start to accrue interest. 

Today, XX/XX/XXXX, I called to make sure the Service Finance Company , LLC received the check. They said that they received the check XX/XX/XXXX, but that I still owe interest on it. 

I was confused, as I had paid the loan in full before the due date ... so I inquired into exactly WHAT interest. Daily interest accruing during those 7 days, they said. XXXX XXXX. No one had informed me that interest was DAILY, but they said that this was stated in my contract. I was under the impression that interest was MONTHLY. 

Agitated, I went to pay this interest, totaling {$23.00}, with my debit card. They told me that they don't take cards, we need a check or your bank account. To get your account closed today, you need to give us your bank account and routing number. If you send us a check, you'll be charged more daily interest based on how long the check takes to get to us. 

But that's interest on the interest, I argued, NOT the loan. I didn't agree to pay interest on my interest, I agreed to pay interest on the LOAN, which was paid in full XX/XX/XXXX. I should NOT have to pay interest on interest. 

I was informed that that's just how it works. I proceeded to ask, " So the only way I can get this account closed TODAY is to give my bank account info? ". I was told yes. 

This seems like a giant red flag, since what legitimate company will not take debit cards for payment? According to the XXXX XXXX  website, this company has had plenty of interest related complaints as well, besides mine. 

I proceed to pay them over the phone. I ask the representative to confirm 3x over the recording to say that I DON'T OWE ANY MORE FROM THIS MOMENT ON AND THE ACCOUNT IS CLOSED. 

My complaint is regarding shady practices. Firstly, not being upfront about daily vs monthly interest ( burying it in the written contract & not in layman 's terms/easy to understand " it's daily interest '' ) ... secondly, charging interest on interest ... .and thirdly, only taking bank account numbers+routing numbers or checks as payment. 

I am also worried about two things : XXXX that they will try to accrue more interest from me ( that they themselves have stated today, XX/XX/XXXX that I do not owe anything more to them XXXX due to the processing time on their end of my payment. 

XXXX that they will fraudulently continue to debit my account regarding false interest.

Company response to consumer: Closed with monetary relief