Consumer complaint received 2020-02-24
Company: Flandreau Santee Sioux Tribe
State: HI
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Can't stop withdrawals from your bank account

Complaint:
I took out a payday loan with 605 Lending ( FSST Management Services , LLC, d/b/a 605 Lending (  referred hereinafter as 605 Lending, LLC ) ) for the amount of {$500.00} after experiencing an emergency. At the time, I was asked to call to complete the loan process where they say their script on the contract, outlining that the agreement I was to be spent should be signed online to complete the process. All this time, the person who is handling my case is providing me with an overview about the interest minimally -- as in the rates are stated on the agreement that they then asked me to sign and submit while they were on the phone with me. I did not have a chance to go through the exact fine print or terms, but was able to see the percentages at the top and the amount owed. They also said that I was to make payments for the next 12 months bi weekly as per my pay schedule, and I went through and logged each upcoming pay date. They also showed via the page I was provided that the loan would be charging an AYP of what at the time I thought was 440 %. Very expensive but being desperate and pressured I signed and received the funds. Later, I was able to log into the account and reread the loan terms but noticed there was a higher interest rate than I previously saw at over 775.96 % and each payment would be {$150.00}, making the loan well over the originally borrowed {$500.00}. I paid as the terms were outlined though unhappily, especially since no one covered nor is it stated how the principal amount would be payed using my payments. As time moved forward and a few payments were made I had a few issues with early payment processing and subsequent overdrafts on my end and asked the company to switch from ACH debit via writing/ email. They agreed, but sent a LONG email with a gist of " Remember to follow the terms YOU signed and pay this loan, etc. '' which I understood and said thank you for. In this same email I saw that they were then asking that I send my payment or call in for payment 3 DAYS PRIOR to my original due date and that if i did not I was by proxy allowing for them to sign a check in my name for the amounts owed. I declined and called them asking to make sure they knew not only was this not acceptable but unwelcome. I also said that I would not pay until my due date which is my right as the consumer but was met with the same " Follow your agreement '' line. I again stated this was not acceptable and again tried to reach out where I was again met with opposition. Upon further reading the agreement, they have a section labeled under the ACH/ Debit section stating that as the signee I " may not revoke the authorization to prepare and submit drafts on my behalf until such times as the loan is paid in full ''. Under thisclause is then another clause stating another payment option called a " REMOTELY CREATED CHECK ( RCC ) AUTHORIZATION '' and is outlined as such : " If you elect to make your payments by remotely created check ( otherwise known as a demand, draft, XXXX, preauthorized draft or paper draft ), then by electronically signing this Payment Authorization Agreement you authorize Lender to create checks bearing your name and other information as may be required under applicable law, rather than your handwritten signature, drawn on your bank account below, and to submit each check for payment to your bank or financial institution ( Remotely Created Check ) in the amount of each payment due, under the payment schedule or otherwise to Lender under this Agreement or any amount on any dates on which you and Lender later agree. 
If a remotely Created Check is returned unpaid by your bank or financial institution, then you authorize Lender to create and submit a Remotely Created Check for any late fees or other amounts accrued pursuant to this Agreement. You agree that your typed name or other designation mandated by applicable law will constitute your authorized signature fully reflecting your intent to authenticate any such Remotely Created Check. If you believe the Lender charged your bank in a manner not contemplated by this Payment Authorization Agreement, then please contact Lender. '' After speaking with my bank the tellers both through the online service and at the physical locations ( separate occasions ) said that an ACH and an echeck are basically the same and by revoking one I revoke the other concurrently. Also, If i do not personally authorize each check it is considered fraudulent. 

At this point I have tried to with no success ask that the lender kindly stop auto drafting from my account but to no success. to date, I have paid {$1200.00} with a remaining balance of {$480.00} -- all of which I am totally unsure as to how I will repay without these drafts. I have contacted the company multiple times and have even attempted to facilitate the issue through the XXXX XXXX XXXX of whom the company did not respond. I am seriously unsure how to proceed and worry this lender will use their means to further hinder my ability to pay off this loan and escape this predatory financial situation.

Company response to consumer: Closed with explanation