Consumer complaint received 2021-09-17
Company: Kikoff Inc.
State: FL
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem when making payments

Complaint:
Kikoff provides you with a {$12.00} virtual loan to assist with building your credit. They do not give you the {$12.00}, instead they put it in a wallet that is accessible on their website and allow you to make {$1.00} payments via their website for 12 months until the " loan '' is paid off.

Recently, due to Kikoff and other lenders that were processing erroneous accounts, most of the credit bureaus created a threshold at which they would report these types of loans. I did not have the option at anytime to close the account or payoff the loan, I could only pay {$1.00} per month. To my knowledge, this was happening automatically.

During the beginning part of 2021 I had lost my job and kikoff was the last thing on my mind. I had not received any letters in the mail indicating I had an outstanding debt. I also did not receive any emails from kikoff nor any mail correspondence or phone calls from Kikoff advising of an outstanding debt. 

On XX/XX/2021 I received an email that stating that my account was going to be closed for non payment and that they would report my account 90 days late in addition. I was unsure how the account would be late considering the funds needed to pay the " loan '' were in their possession the entire time. I never had the funds. They were simply given to me by them, held by them, and then paid back to them. There was never a transfer of funds from an external source. Additionally, I had not gotten ANY emails from them prior to XX/XX/2021. 

I have attached my account information with Kikoff which shows that my email address is not verified. If they allege they were emailing me all this time, how were they confirming I was getting them as my email was not verified? Therefore they never got any confirmation at sign up that my email was working properly.

Additionally, how was the ONLY email I did get one advising me that my account was closed? You will also note in my email that there is a payment receipt. The other account I had with Kikoff I went ahead and paid in full as that account did require an exchange of external funds from an outside source. 

I am curious how this is legal that a company can " lend '' someone money that is always in their possession and use the SAME funds that were " lent '' to pay back the 0 % interest loan. 

A secured loan is when the lender provides the consumer with a loan of say {$500.00} and holds the {$500.00} in their possession and once the consumer pays them {$500.00} with external funds, the bank then refunds the consumer the {$500.00} and closes the loan. In kikoffs case, the loan funds and the repayment funds are the exact same. I got a loan for {$12.00} and used that same {$12.00} to payoff the loan so if I paid {$1.00} the loan would decrease by {$1.00}. 

They sent me an account statement via email on XX/XX/2021 when I tried to rectify the matter. This statement was never provided to me prior via mail nor email.

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