Consumer complaint received 2019-03-12
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Problem when making payments — 
Company: Quick Bridge Funding, LLC (HI)

1. XXXX  XXXX  XXXX, XXXX, entered into a Business Loan Agreement Merchant Loan with XXXX XXXX XXXX through XXXX XXXX XXXX dba Quick Bridge Funding, with a guarantee from XXXX XXXX, and was purportedly granted a security interest in and lien against all of the Debtors assets. Pursuant to their provisions, the QB Loan Documents are to be governed and construed by the laws of the state of California. The Business Loan Agreement was for XXXX XXXX XXXX, XXXX to receive {$150000.00} ( QB Loan for {$150000.00} ) in funding with a pay back {$180000.00}. In addition to the QB Stated Interest, the Debtor was also required to pay an origination fee of {$4500.00} ( the QB Origination Fee ) to Quick Bridge. Although identified as fees the QB Fees are, in substance, additional interest under the QB Loan ( the QB Fees and the QB Stated Interest are together, the QB Interest ). The total cost of the loan being is then calculated at {$190000.00} or {$41000.00} more than the amount borrowed. This loan was to be paid back in 25 weekly payments. Considering the 48 % of one-year term of the QB Loan, the effective QB Interest rate per annum is approximately 57. 6 %. Although the Debtor was advised and expected to be entering into a loan with Quick Bridge, the QB Defendants, using the rent-a-charter scheme, originated and papered the QB Loan through BofI, a federally-chartered bank. Immediately after funding, XXXX assigned the QB Loan to Quick Bridge. 
2. XXXX XXXX XXXX, XXXX, has made payments of {$100000.00} plus the {$4500.00} origination fee to date. A transaction report shows each payment made. This leaves a balance of {$82000.00}. 
3. In connection with the QB Loan, QUICK BRIDGE FUNDING , LLC charged a usurious interest rate under California law exceeding 7 %. California Code, Civil Code - CIV 1916.5 states, The rate of interest upon the loan or forbearance of any money, goods or things in action or on accounts after demand or judgments rendered in any court of this state, shall be XXXX   dollars upon the XXXX  XXXX dollars for one year and at that rate for a greater or less sum or for a longer or a shorter time ; but it shall be competent for parties to contract for the payment and receipt of a rate of interest not exceeding XXXX  dollars on the XXXX   XXXX dollars for one year and not exceeding that rate for a greater or less sum or for a longer or shorter time, in which case such rate exceeding XXXX dollars on one hundred dollars shall be clearly expressed in writing. 
4. The QB Loan documents do not clearly express in writing that the interest rate will exceed XXXX dollars on XXXX  XXXX  XXXX. 
5. The interest rate for the QB Loan for {$150000.00} was 57.6 % or {$41000.00}. If using the maximum interest allowed pursuant to California Code, Civil Code - CIV 1916.5 of 7 % this would be an interest charged of {$10000.00}. This is a difference of {$31000.00}. 
6. XXXX XXXX XXXX, XXXX has made payments of {$100000.00} on the {$150000.00} loan leaving a balance of {$45000.00}. Allowing for the legal interest rate charge this would be {$10000.00}. This leaves a total balance due to QUICK BRIDGE FUNDING , LLC of {$55000.00}. 
7. The decrease of {$31000.00} would bring the total owed to {$24000.00}.