Consumer complaint received 2023-08-01
Product: Payday loan, title loan, or personal loan — Title loan
Issue: Charged fees or interest you didn't expect — 
Company: Thaxton Investment Corporation (MO)

I was called by XXXX XXXX on XX/XX/XXXX stating that she seen where I started to apply for a loan, but did not finish my application and wanted me to apply over the phone. I agreed and notified her that I needed {$2000.00} to move my things in storage from XXXX XXXX XXXX. We finished the application and she called me the next day and said I was approved and asked me to bring in my car title for collateral. I told her I had a lein on my car and I couldn't use that as collateral. She then told me that she would just pay off my current car loan and then we could use it as collateral. I was currently paying {$320.00} a month at 8.9 % interest and only owed {$8300.00}. I did not know at that time that any of my current loan conditions would be subject to change. She asked me if I could come in that day to finish the loan and bring her my title to my XXXX XXXX XXXX. I came in after work and gave her the title. She had me change the lienholder as Heights finance on my car insurance while in the office. She made copies of all my required identification and proof of income and residence. She never at XXXX time told me that my interest rate would increase. She did say that my car payment would be a little over {$500.00}. I told her that would be fine because I would not have to pay the {$170.00} for storage each month. She told me that by doing this refinance my car would be covered above and beyond my regular car insurance if it was in an accident, if it broke down on the side of XXXX XXXX or if the other driver didnt have insurance etc She said my first payment wouldnt be until XXXX. She then pulled out her tablet, gave me a stylus and told me to just tap the boxes that she pointed to. I did not at anytime type in my name. I only tapped on the boxes she pointed to. She then printed off some papers, folded them up and put them in a paper folder and gave them to me and I then left the office. On XX/XX/XXXX I received a call from Heights finance asking for my first payment. I told her that I had wondered how I was going to pay because I hadnt received a payment book or a statement. They did not inform me about the Website to make payments. I told her I could pay with my credit card and she told me they did not take credit cards only debit cards. She said my first payment would be {$800.00} and {$680.00} every month after that. I was in shock because she had said my payment would be a little over {$500.00}. I then went onto their website to see the loan conditions, which is where I discovered that the extra {$4000.00} was for insurance. I called and told them that I wanted to opt out of the optional insurance that I knew nothing about and they said I would have to come in and sign a liability release before they could cancel them. I went in and wrote out a statement on a piece of copy paper they gave me. They were not happy that I opted out of this insurance. She did not at any time tell me that the insurance was being paid for by me. In an email that I sent to her on XX/XX/XXXX asking about why I had an extra {$4000.00} added onto my loan as it showed I was owing them {$16000.00} as I had owed XXXX for my car loan pay off with a {$4000.00} paid to me. She told me in the email that it was all interest. I asked her how I could owe XXXX in interest from XX/XX/XXXX to XX/XX/XXXX. She then emailed me back stating that I pay interest in arear and I pay interest everyday that I am in the loan. She even then did not tell me that the extra {$4000.00} was for the additional insurance. I did end up paying the first payment in hopes that I could trade in my car to get out from under this loan. No car lot would touch it due to the amount owed on the car nor could I sell it outright due to the amount owed. After months of calling XXXX XXXX and XXXX XXXX and going to different car lots, calling lawyers, worrying, crying and researching how this happened to me and what I was going to do to get out from under this loan. XXXX XXXX at XXXX said if I could get an offer on my car for {$10000.00} that he would release the title. I was only able to get an offer of {$9000.00} so I called him back frantically and he agreed to release the title for {$9000.00}. I had to borrow {$2000.00} from my Dad in order to pay the down payment on the newer car. They then proceeded to send my account to the credit bureaus bring my XXXX XXXX on all three bureaus by over XXXX points. I asked them to please remove it from my credit and they refused. I had to pay for an attorney to send them a demand letter to remove it from my credit and received a response of denial of any wrong doing on their part and denial of removing it from my credit. My credit was then ruined after working so hard to get it up so my husband and I could buy a house. This ordeal with Heights Finance has cost me months of tears, worry, regret, XXXX and financial trauma.