Consumer complaint received 2016-02-17
Product: Consumer Loan — Installment loan
Issue: Taking out the loan or lease — 
Company: Synovus Bank (AZ)

I received a phone call asking if I was interested in taking an unsecured loan and filed an application over the phone. I was approved for a {$6000.00} loan repayable at {$260.00} per month for 24 months. The representative then stated that before transferring the loan funds to me I would be required to make the first payment of {$260.00}. He stated this would demonstrate my ability to pay. I purchased a XXXX pre-paid XXXX at XXXX for {$260.00} and provided the card number to the bank. I was then told that they were unable to accept payments on a XXXX XXXX and that I would need to purchase a XXXX XXXX in order to make the {$260.00} payment. Following these instructions, I purchased the XXXX XXXX and provided that number to the bank over the phone. I was then informed that I would need to purchase an additional XXXX XXXX for {$230.00} in order to cover the cost of transferring the funds to me via XXXX XXXX. I purchased that card at the Family Dollar Store and again provided the card number to the bank over the phone, At that time, they said that I would need to make an additional payment of {$250.00} with another XXXX. They explained that this was supposed to cover the income taxes for the loan. I did not feel like I should have to make a tax payment to them, as I would handle any taxes due when I filed my individual income tax forms in XXXX. I told them I was not going to make and additional payments to them. 

Following my refusal to make any additional payments, with the help of a friend, I made several phone calls to the bank trying to resolve the situation. Each time representative I spoke with ( XXXX XXXX, XXXX XXXX, XXXX - Supervisor, XXXX XXXX - Tax Manager, and XXXX - refunds ) simply stated that nothing further could be done unless I made this additional payment. In the meantime, I contacted the XXXX company and was told that there was no available balance on that card ( despite the fact that they said they were unable to accept that card ) and that the card had been registered under an identity that did not match mine. I called the bank and asked them to release the money on the XXXX card back to me. They replied that they would only release those funds after I had completed the additional tax payment. I then told them that we had reached an impasse and that I would like to cancel my loan application and receive a refund of the money I had already sent them. They responded by stating that I would need to send them an additional payment of {$110.00} to pay a cancellation fee. I said they should take the fee out of the {$750.00} I had already paid, They stated that would not be possible and that if I did not send the {$110.00} then I would just have to " let it go ''. 

In addition to the numerous calls I made to the loan people I also called the Columbus Bank and Trust at a different phone number I located online ( XXXX ) and spoke with customer service representative XXXX XXXX, who told me that no loan officer at their bank would ever make an unsolicited call offering a loan and they would never require a payment in advance of receiving loan funds. Furthermore, she told me that the Columbus Bank and Trust does not have a branch in New York. I forwarded her a copy of the loan agreement I had received via email so that her institution would no that someone was conduction fraudulent activity under their name. 

I have now given up on trying to deal with the people making the loan and am instead attempting to recoup my money from the XXXX and XXXX companies. I have tried to stop payments to the loan company and have opened claims on each of the XXXX pre-paid cards I purchased. In each instance I have been told that the card is now registered in an identity that does not match my own. As of this time, I am still waiting to hear about the outcome of these claims.