Consumer complaint received 2017-01-03
Company: FC HoldCo LLC
State: VA
Product: Consumer Loan
Sub-product: Vehicle loan
Issue: Taking out the loan or lease

Complaint:
This complaint is about Flagship Acceptance XXXX, LLC and the predatory lending practices and being underwater with my vehicle loan. On XXXX XXXX, XXXX, I purchased a XXXX XXXX XXXX SV from XXXX of XXXX. The XXXX XXXX was not my first choice however, I did not want my payments to be no more than {$350.00} a month. When it was time to discuss the financing, the account manager claimed that Flagship Credit Acceptance was the best option for me. The total purchase price was {$19000.00} with a 13.49 % interest rate payments of {$390.00} per month with a 72 month loan term. I was told by the account and sales manager that after 6 months to 1 year they would help me with after 6 months. After 6 months of payments that began XXXX XXXX, XXXX, I asked the sales and account manager and was told they could not request financing because the XXXX XXXX XXXX is considered a used vehicle and to contact Flagship Credit Acceptance about refinancing. I was told by a representative that Flagship never changed the terms of the loan I applied with a credit union for refinancing of the XXXX XXXX. When I applied in XXXX XXXX, I was denied because the loan balance was higher than the vehicle was worth. In XXXX XXXX, I had major emergency XXXX and was out of work for a period of time. I contacted Flagship the end of XXXX XXXX to let them know that my payment would be late and I had major XXXX and was trying to catch up with my bills. The representative then asked me what body part was XXXX. I told the representative that this was a XXXX violation. The representative told me that per the supervisor there is a questionnaire for all clients 7 days late with their payment. On XXXX XXXX, XXXX, A complaint with the Consumer Financial Protection Bureau on Flagship Credit Acceptance and XXXX XXXX.was filed and. XXXX XXXX from Flagship Credit Acceptance responded to CFPB. I disputed XXXX XXXX 's response about the call that she was unable to locate. I left a message to XXXX XXXX and I received a call from the office of XXXX XXXX and was told they could not pull up the call and understood my frustration after listening to some of my calls. I explained that I was upside down in this vehicle loan because of the 13.9 % interest rate and I was requesting to lower the interest rate and monthly payment. The representative from XXXX XXXX 's office stated that she would have to submit the request to the underwriting/loan department. I received another call a few days later and was told that they agreed to lower the interest rate to 8 % and reduce the monthly payments to {$330.00} per month. On XXXX XXXX, XXXX I filed through my attorney Chapter XXXX bankruptcy. When I contacted Flagship to tell them when I was making my payment, I was transferred to the bankruptcy department. I asked the representative about the loan the value of the vehicle and was told that I already had an 8 % interest rate and Flagship would not go lower than that. I told the representative that I was hesitant of reaffirming with Flagship because if something happened to the vehicle, I would be responsible for the value of the loan of {$16000.00} and the value of the vehicle is much less than that. My Attorney received a reaffirmation agreement from Flagship agreeing to lower the interest rate from 8 % to 4 % and lowering the payment from {$330.00} to {$330.00} with a 60 month term. Then on XXXX XXXX at XXXX pm, I contacted Flagship on XXXX/XXXX/XXXX and was transferred to the bankruptcy department. The representative on the phone identified herself XXXX who yelled at me and said changing the loan is not happening.Flagship makes their money by their high interest rates making it impossible for customers to get out of their loan.

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