Consumer complaint received 2016-08-09
Company: Tower Loan of Mississippi, Inc.
State: LA
Product: Consumer Loan
Sub-product: Installment loan
Issue: Managing the loan or lease

Complaint:
Hi, my name is XXXX XXXX, XXXX. 
XXXX, La. XXXX XXXX XXXX In 2014, I got a loan from Tower Loan XXXX at their XXXX XXXX in Louisiana. 
I borrowed approximately {$1500.00} and before I signed the loan, I asked the underwriter, XXXX that if I paid the loan off early, I would not be penalized with interest, fees or charges that were n't related to the accrued interest of the principal balance and she agreed, stating that the finance charges shown on the loan documents would only be required if I made the minimum payments for the length of the loan, which was 24 months. 

I Paid back approximately {$1000.00} in less than 3 months. Approximately {$1700.00} in less than 6 months. At that time I called to get a payoff amount and was told that my payoff amount was approximately {$2000.00}. I told them this was obviously an error, because I had already paid back more than the principle of the loan in less than 7 months. First they claimed that several consumer trial services that were required to obtain the loan were added to the principle at the time the loan was signed and not to the accrued finance charges as stated multiple times by the underwriter. I did n't sign the loan until the loan underwriter, XXXX, assured me that if I paid the principle amount of the loan early, I would not be charged for the services or the interest accrued by the services. 

The total additional cost for these bogus charges was approximately {$2400.00}, not including interest of around 36 %. 

I actually did not receive any correspondence from any of these services until after I had made {$1700.00} in payments and called for the payoff amount and was obviously furious by their explanation of the remaining balance. 

Later I read through one of the service documents I was being charged for and it stated that actually none of the consumer trial services were required for the loan as stated by XXXX, the loan underwriter. Also, the loan documents that were given to me for my records were not signed by both parties. 

After weeks of arguing with them about getting the correct payoff amount, I continued to make payments. More than what I should have. They never corrected the finance charges and still claimed I owed them {$1400.00} on the loan. They also claimed, for a moment, that interest on the loan is paid before any principle payments. Which my loan documents clearly contradict. Now, since they filed a judgment, there 's no telling how much fraudulent costs will be added The most confusing thing about this happening is that this was the second loan I 'd gotten from Tower Loan. I paid off the first loan with a portion of the money from this loan without any problems. 

I 've paid back {$2400.00} to Tower Loan on a {$1500.00} loan, while getting calls from them at least twice a day on my mobile phone, being harassed with garnishment threats and phone calls to my friends, my family and even on my work phone, requesting to speak to my boss! 

A judgment was filed against me a few months ago for this matter. I could n't afford an attorney. So I tried to respond to and file answers to the requested information in the judgment letter and give an explanation of the illegal activities that this company is committing. But, I was only given 15 days to do so, which was impossible since I have an hour commute to and from work that totals over 12 hours for a typical work day and at the time did not have any remaining annual leave for the year. Now, I 've gotten a letter that they are trying to garnish my wages. 

I could understand if I did n't pay the loan back. But, I paid well over the amount I borrowed, in less than 10 months. 

Business Name : Tower Loan ( Local Office ) XXXX, LA XXXX XXXX Tower Loan Corporate Office Headquarters XXXX, MS XXXX Corporate Number : XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation