Consumer complaint received 2018-01-03
Company: Social Finance, Inc.
State: DC
Product: Student loan
Sub-product: Private student loan
Issue: Getting a loan
Sub-issue: Problem with the interest rate

Complaint:
There are three problems with the way I was treated by SoFi : ( 1 ) First, on XX/XX/XXXX, I responded to a solicitation by email, from SoFi, which said I would be given a .25 % discount on a student loan refinance, if application were submitted before XX/XX/XXXX. On XX/XX/XXXX or XX/XX/XXXX I filled out an on-line application for refinancing my private student loan. In the online application, I listed my net income as {$150000.00}, based on the income I have earned this year, XX/XX/XXXX. SoFi 's application did not request, at that point in time, that I list my income from years prior to XX/XX/XXXX ; it merely asked for a statement of my income. Then, On XX/XX/XXXX, I received an email saying I was pre-approved for a rate of 4.25 %, with monthly payments of {$490.00}, fixed rate for 15 years. On XX/XX/XXXX, I responded to SoFi 's request for tax forms for the years XX/XX/XXXX and XX/XX/XXXX, along with additional financial information, which I provided. I am self-employed and received net income of {$90000.00} in XX/XX/XXXX and {$110000.00} in XX/XX/XXXX, respectively. Between XXXX and the XXXX XXXX, I received two more emails requesting additional financial information, to which I responded with a total of 30 pages of documents. At no time did SoFi ask me to clarify my ( correctly stated ) statement of income for XX/XX/XXXX. I continued to see on my SoFi dashboard that the rate I had been offered would expire on XX/XX/XXXX. Then, that same day, XX/XX/XXXX, I received another email from SoFi, which revoked my offer of 4.25 % and replaced it with a new offer of 5.175 %. 

The explanation provided by SoFi was as follows : " The interest rate quote we initially provided was based on the {$150000.00} annual income entered in your application. However, the income entered in your application differed from the income we were able to verify using the documents we received. Due to this discrepancy, your interest rate quote has changed. '' I believe SoFi 's application process was unfair because the income I provided at the outset was correct and I was not presented an opportunity to prove it. The low, 4.25 % rate offered was merely bait to induce me to do a lot of work to apply, only to receive a higher rate, based on an incorrect explanation. 

Note : I have more than enough disposable income to pay the monthly amount required by either of SoFi 's offers. My credit score is XXXX. I receive numerous solicitations weekly to open up new lines of credit. SoFi 's justification for increasing the interest rate, based on what SoFi incorrectly states was an inconsistent statement of income, is baseless and was merely a pretext to increase the interest rate that it offered, and unfairly induced me to engage in their loan application process. 


( 2 ) Second, today, XX/XX/XXXX, I received a letter by email from SoFi that revoked my offer of 4.25 % and replaced it with a higher offer of 5.175 %, under an expiring deadline for SoFi 's initial offer of 4.25 %. I believe providing a deadline for a low rate, and then revoking it with less than 24 hours left under the deadline, after a fair attempt to comply, is a pressure tactic and is unethical it itself. This method of conducting business is also a burden to me, and probably countless other consumers, because of the weeks I have invested in pursuing SoFi 's original offer. 


( 3 ) Third, SoFi has no internal complaint process for consumers. I was able to speak to a manager, on a recorded line, but he said there is nothing he can do to help me. I asked for the opportunity to speak to someone at a higher level, or to file a formal complaint, or to engage in arbitration to address my complaint, but he said there is no one else to speak to, there is no internal complaint process for consumers, and there is no arbitration program. However, the manager said that he was filing a " complaint '' for SoFi 's records, to improve the application process but not to provide me, the consumer, with any avenue for relief. He said there would be a record number generated after our call, but when I asked him for the record number, he said he could not provide it unless SoFi receives a court order to provide it. He said I could probably get a copy of the phone recording, but only if a court orders it. I asked him for his full name, but he would not provide it, except for his first name and last initial ( " XXXX XXXX '' ). I asked him for an acknowledgment by email that I had complained, with a copy of SoFi 's " quality control '' complaint number, but again he said I do not have the right to receive any record of my concerns. In sum, I believe SoFi is engaging in " bait and switch '' tactics with consumers, is arbitrarily revoking offers and replacing them with dramatically higher offers, and is not serving consumers or the business community by failing to have ANY internal dispute resolution process to resolve customer complaints.

Company response to consumer: Closed with explanation