Consumer complaint received 2017-07-11
Company: BlueChip Financial
State: OH
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Charged fees or interest you didn't expect

Complaint:
On XX/XX/XXXX I borrowed {$800.00}. To date, through XX/XX/XXXX, I have paid {$1600.00} for this loan, over twice the principal. It is becoming a real hardship for me to have {$130.00} taken out every pay. Since I 've already paid back almost twice the principal, I asked for settlement onXX/XX/XXXX. They refused a settlement telling me I did n't qualify for a settlement, but could n't tell me why I did n't qualify for a settlement. They only offered to let me pay {$690.00} more by XX/XX/XXXX. The following statement in response to a previous complaint is completely false. " You agreed to settle your loan for {$370.00} on XX/XX/XXXX. You missed your first settlement payment due on XX/XX/XXXX. " They did offer a settlement of {$500.00} on XX/XX/XXXX. I countered with an offer of {$200.00} in 2 payments which they refused. They contacted me again via phone on XX/XX/XXXX. They then offered a settlement of {$370.00}. I countered with {$270.00} which they refused. I was basically coerced in accepting a settlement of {$370.00} paid in 2 installments.
In the meantime, I had done extensive research and consulted an attorney. I have also filed a complaint with the Ohio Attorney General. My findings : Payday/short-term lenders must be licensed by the state of Ohio in order to offer loans to its residents. ( See attachment of ORC 1321 ). Since this company has no license in my state, the loan contract is not valid. As stated, I have consulted an attorney regarding this and have been advised not to make any more payments on this loan.
Although I am not legally required to do so, I am willing to repay the principal balance of this loan. I received a deposit of {$800.00} on XX/XX/XXXX. To date, I have made payments equaling {$1600.00}. This actually results in an overpayment of {$830.00}. XXXX. I wo n't even include the overages I paid on previous loans.
I am not a member of the XXXX XXXX XXXX XXXX XXXX nor did I obtain this loan on tribal land. The mailing address is in Illinois. ( Spotloan is not licensed in Illinois and not authorized to loan to Illinois consumer per cease and desist order of XX/XX/XXXX from the Illinois Department of Financial and Professional Regulation. See attached. ) Why if the tribe is in North Dakota is there is a mailing address in Illinois?
I suspect this is a case of " rent-a-tribe '', a tribe being used by an outside lender in an attempt to get around state laws. The FTC argues that tribal jurisdiction does not apply. The loans are off-reservation activity because they were taken out by people who are not on the reservation. ( From an article in XXXX XXXX dated XX/XX/XXXX ). I can supply many, many articles regarding this and the lawsuits and court decisions concerning these issues.
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I have revoked authorization for ACH withdrawals and you have responded with an email stating that I have declined automatic withdrawals from my bank account. A copy of this has been given to my bank. ( See attached ).

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