Consumer complaint received 2022-09-21
Company: Braviant Holdings, LLC
State: MS
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
I obtained a {$1000.00} personal loan from Balance Credit on XX/XX/2022. Application number XXXX. During the application process I was shown loan offers in the range of 28 %, while high, I thought that since it was such a small loan that I could pay it off quickly. 

I electronically signed the documents and the funds hit my account a few days later. After making payments as agreed, I noticed a new days ago that the interest rate on this loan is not 28 %, but 280.0068 %!! I did not willingly agree to pay such a high interest rate. No one in their right mind would. 

I am a resident of Mississippi. Mississippi has usury laws ( inter alia MS Code 75-17-1, 75-67-101 et seq ) that prohibit this type of predatory leading, with the exception of payday loans. This is not a payday loan, it is a personal/installment loan. If you scroll to the bottom of the Balance Credit splash page using a mobile phone, you'll see that they advertise personal loans. 

MS Code 75-67-109 and 75-17-21 forbid creditors like Balance Credit from engaging in misleading advertising. As stated above, nothing on Balance Credit 's public facing website would lead one to believe that they are about to involve themselves with a 280 % + interest rate personal loan. MS Code 75-17-21 ( 1 ) states in pertinent part : ( 1 ) Notwithstanding any provision of law to the contrary, the maximum finance charge which may be contracted for and received for any loan or extension of credit made by a licensee under the Small Loan Regulatory Law XXXX Section 75-67-101 et seq. ) and the Small Loan Privilege Tax Law ( Section 75-67-201 et seq. ) may result in a yield not to exceed the following annual percentage rates calculated according to the actuarial method : ( a ) Thirty-six percent ( 36 % ) per annum for the portion of the unpaid balance of the amount financed that is not greater than XXXX XXXX Dollars ( {$1000.00} ) ; https : XXXX By the authority of MS Code 75-67-119, usurious interests and finance charges will be forfeited and can be recovered and in relevant part states " [ i ] f any finance charge in excess of that expressly permitted by Section 75-17-21 is contracted for or received, all finance charges and other charges shall be forfeited and may be recovered, whether the contract be executed or executory. If any finance charge is contracted for or received that exceeds the maximum finance charge authorized by law by more than one hundred percent ( 100 % ), the principal and all finance charges and other charges shall be forfeited and any amount paid may be recovered by suit ; and, in addition, the licensee and the several members, officers, directors, agents, and employees thereof who shall have participated in such violation shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than XXXX XXXX Dollars ( {$1000.00} ) and not less than XXXX XXXX Dollars ( {$100.00} ), in the discretion of the court ; and, further, the Commissioner of Banking and Consumer Finance shall forthwith cite such licensee to show cause why its license should not be revoked... '' https : XXXX Therefore, the maximum rate that I should be charged is 36 %. 

Today, XX/XX/2022, I spoke with a customer service rep at Balance Credit named " XXXX. '' She do not provide a last name. In response to an email that I sent to the creditor to ask them to lower my interest rate to comply with what was advertised to me initially and such that it would be in keeping with Mississippi law, I was told " we will not be lowering your interest rate '' and " we are licensed in your state and follow your states law '' without further explanation. 

In my email, I also explained that, aside from the XXXX XXXX usury laws, that Balance Credit lower my interest rate in recognition of my status as a XXXX veteran and offered to provide evidence of that status. This was ignored. 

Thus, I'm left with turning to the Consumer Financial Protection Bureau to take action on my behalf. 

I ask that my interest rate be lowered to 28 %, as was advertised to me. I further ask that any interest that I have already paid over 28 % be credited to my outstanding balance. As I type this, my outstanding balance is {$920.00} after making three payments of {$110.00} and one payment of {$140.00}. 

Thank you for your time and consideration in resolving this matter equitably. 

XXXX XXXX

Company response to consumer: Closed with explanation