Consumer complaint received 2016-04-07
Company: TMX Finance LLC
State: GA
Product: Consumer Loan
Sub-product: Title loan
Issue: Charged fees or interest I didn't expect

Complaint:
I applied online for a personal loan through Instaloan. Never during the application process did it mention anything about needing my car title as collateral for this type of loan. They do have XXXX lienholder loans but that was not what I was applying for. The loan was approved for more than I originally applied for, The manager of the local store called to inform me that my application was approved and that I needed to bring my car title, proof of income, Id, etc. I asked why I needed my car title and was told that due to my credit score I would need to bring the title as collateral and once I made 3 months worth of payments on time they would convert the loan from a title loan to a personal loan. I made three months or so of payments on time not problem and asked about having the loan converted to a personal as we discussed originally. I was told at that time that there policy had changed and they could no longer convert my loan. I was forced to buy insurance that I 'm not entirely sure what it was for since I had to add them to my car insurance as the loss payee. The way it was explained to me they would also get paid for the loss of the vehicle should it be totalled, I got nothing from it, it benefitted no one. Everytime I would go into make a payment it was something different until I yelled and scream, at which point I was no longer made to pay for their insurance. I also discovered that I had been overcharged since the beginning of the loan, they did refund that money by applying it to the loan reducing the principle. Since then I have had to renew this loan over and over because I ca n't seem to get caught up. With interest and loan fees I seem to be stuck with no end in sight. I tried to look up the lending laws in GA in regards to title loans but the information is hard to understand. The state of GA and XXXX County says its a title pawn not a loan and therefore they have to abide by the pawnbroker law ( Pawnbroker Law ( Ga. Code 44-12-130 et ). The transaction should be treated as a " pawn, '' NOT a loan so technically I pawned my car. The law also states they can not advertise it as a loan, which they do on their website and also in their storefront locations. So what I took all this to mean is that if I fail to pay they can take my car, sell it for more than is owed and pocket the difference. While I 'm left broke with no car. Ultimately the cost of the {$2500.00} loan has far exceeded my worst-case scenario with no end in sight. If my calculations are right this expedition, has a retail book value of about {$15000.00} or more by the time all is said and done. I feel I was deceived from the start, I did n't want to pawn my car title, I wanted a personal loan. I would have never agreed to take out this loan had I known is a title pawn but was told everything would be fine ; the loan would convert to a normal personal loan and I would get my title back in three months or so of on time payments. That did n't happen and has not happened after almost 3 years after taking out this loan. Every time I have asked to have the loan converted something always prevents it from happening. Now I 'm stuck with title pawn that sold as a personal loan. I ca n't afford to lose my only means of transportation but I ca n't keep paying for a loan that 's value has far exceeded the value of the car. For all intents I could have bought a brand new car with what this loan has cost me.

Company response to consumer: Closed with explanation