Consumer complaint received 2020-06-12
Company: Applied Data Finance, LLC
State: WA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
On XX/XX/XXXX I obtained a loan through Personify Financial in the amount of {$1500.00} This was a personal loan with a maturity date of XX/XX/XXXX. 

What caused this issue, was that I ran into financial trouble soon after the loan was given. I contacted the company to ask about a delay in payment, and they denied. While doing some research, I found out that this company is not licensed in my state of WA, and it is required to be in order to offer loans. 
Further research showed that Personify Financial says that it does business with a XXXX XXXX XXXX  in Utah. My loan would be given and serviced through them as I am in WA. 

When I phone the XXXX XXXX XXXX  in Utah, I was informed that they had no account with my name, and do not have any information of me. Looking back on my paperwork, that name was mentioned in my loan documents, however Personify Financial deposited the money into my bank account, Personify Financial sent the invoices and all payments were made to them-never to XXXX XXXX XXXX. 
Additionally, my interest rate with Personify Financial for this loan was at 175.35 % which is a huge amount higher than that of WA allowed legal rate of 12 %. 
I understand now that they are using XXXX XXXX XXXX  in Utah to simply be a front bank that allows them to make loans to people in states with licensing requirements and with percentage limits. This is what I believe to be illegal predatory lending. 
When I spoke and wrote to the company, as well as XXXX XXXX XXXX  being copied on all correspondence, I only heard back from Personify. 

I asked that they simply lessen my APR to the legal amount in WA, especially since they are not licensed in this state to lend. They refused to budge and subsequently began charging me late fees and higher interest as I was in dispute with them. 

Through this time, they entered this information on my credit report-again-from Personify Financial, with no mention of XXXX XXXX Bank. They charted a 30-60-90 day late on my account. This is the only derogatory entry ever on my credit report, which I have had for some years. I have a total of 11 other accounts active now-vehicle loans, credit cards and personal loans-and have never had an issue or late payments with any of them. 

On XX/XX/XXXX I paid my loan with Personify financial in full. The total amount was {$2600.00}, from an original loan amount of {$1500.00} only 5 months before. 

In addition, since that payment, they have not updated my credit report to show paid as full, but kept it as late for as long as they could. They have not updated this report since the end of XXXX when they logged the 90 day late. 

I contest that since Personify Financial is not legally allowed to lend in my state, and they are conducting some sort of back end scheme with a national bank in order to charge predatory lending rates at almost 200 % this should not be on my credit report. 
I have requested this from both companies but have not received any sort of success in my appeals. 

I would like Personify Financial to immediately delete ALL reporting that they did on my credit report, or delete all reporting 's as late, and to show my account " paid in full satisfactorily '', as they should not have had the ability to do this, since they say that they don't actively service this loan. Also, as they are not licensed in my state of WA, they do not have legal rights to offer or give any loan. Due to this, and as I am paid in full I feel that they should immediately grant this-since they have done something that I argue is illegal. 

I would like Personify Financial to immediately refund me the difference of the monies I have paid them that are calculated over and above the legal amount of WA states 12 % I would like it to be made that Personify Financial needs to get a license in the state of WA to advertise, offer and lend to any consumer of this state. I would also like the relationship that they have with XXXX XXXX XXXX   to be exposed and prove to be a legal partnership for these predatory lending tactics. 

They have lost nothing in this, and have only gained. This should not be allowed to happen. I am sure other consumers-and good, upstanding consumers, are being bullied with these tactics. 

Thank you for your assistance in this matter. 
XXXX XXXX

Company response to consumer: Closed with explanation