Consumer complaint received 2024-04-28
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: Braviant Holdings, LLC (FL)

XXXX XX/XX/XXXX, I emailed Balance loan noting -- I will be filing a complaint on your company through my state 's ( Florida ) and the state of Utahs Office of Financial Regulation as well as filing one with the FTC/CFPB. Then, I will file one in Texas as you are collecting on a debt that is illegal in Florida. 

Under Florida Law, installment payday loans ( installment deferred presentment transactions ) must adhere to the following guidelines : Loans may not exceed {$1000.00}. 
Borrower can have only one outstanding loan at any time. This is tracked through a statewide loan database.

The fee may not exceed 8 percent of the outstanding transaction balance on a biweekly basis. The lender may charge an additional {$5.00} verification fee, which must be supported by actual costs to the lender. 
Loan term must be between 60 and 90 days. 

This loan automatically WILL NOT qualify as an installment loan, as the loan was over the {$1000.00} maximum as my loan was {$2000.00} ; the loan maximum length would be 60 to 90 days maximum ( this loan was for around 16 months ) ; and I would be limited to ONE loan per state and you should/ would have to register on the state 's database ( I have over at least six installment loans or 20 loans easily identifiable through my credit report ) I have other loans even with XXXX XXXX XXXX noting as the lender including : XXXX and XXXX so that alone shows more than one loan with the same lender! 

To date, I have paid {$2500.00} which is clearly over the states {$1000.00} maximum allowable ( as well as is over my initial amount taken out ). Your company is already under the radar of the XXXX XXXX XXXX XXXX which notes : XXXX XXXX facilitates rent-a-bank installment loans up to 225 % APR through a variety of payday and online lenders, including Balance Credit XXXX XXXX, XXXX, XXXX, and XXXX XXXX XXXX 
It notes that in Florida, you would not qualify as an installment loan and as such at 194 %, you are clearly over the allowable 31 % interest rate! 

***** BASED ON ABOVE, I AM ASKING FOR A PAID IN FULL LETTER, MY LOAN TO BE MARKED SAME AND CLOSED AS WELL AS FOR MY CREDIT REPORT TO PROPERLY REFLECT CLOSED WITH NO LATE PAYMENTS. 

Then, I will drop the matter with both state and legal entities and will not retain an attorney who handles predatory/illegal lending. I already have a meeting with same set for XX/XX/XXXX! 

XXXX They emailed back on XXXX noting .... XXXX is a Utah state-chartered bank with the Federal Deposit Insurance Corporation as its primary federal banking regulator. Consequently, XXXX is governed by both federal banking laws and the laws of the State of Utah. Balance Credit is an authorized servicer of XXXX XXXX, a division of XXXX, retained to perform certain marketing functions for the benefit of XXXX XXXX. 
In signing the Loan Agreement, you expressly agreed that " You acknowledge and agree that this Agreement is subject solely to applicable Utah and Federal law. '' If the terms of the loan were not acceptable to you, the Loan Agreement provided for a recession period. 


XXXX  As I already filed a complaint with Florida for a different loan that was using the same 'rent a bank ' scheme witht lender being a Utah state chartered bank and my state doing nothing besides referring me to Utah. This time I wrote Utah directly XXXX  On XX/XX/XXXX I emailed the State of Utah - My state of Florida 's Office of financial Regulation ( OFR ) will not do anything as the lending entity is in Utah even if I'm a Florida resident. 
" Balance CreditXXXX XXXX, a division of XXXX XXXXXXXX XXXX is not operating under Florida licensing/regulations as either a bank or lending company that offers regular or 'installment ' loans.

- They are charging interest above the 30 % allowed in Florida, as on my loan documents you can see and interest rate of 194 % - In addition, if they consider this an 'installment ' loan the amount is clearly over {$1000.00} ( at {$2000.00} ) ; the loan maximum length would be 31 days ( this one is 17 months ) as well as I would be limited to ONE loan per state and they would have to register on the state 's database ( I have multiple 'installment loans being funded by XXXX XXXX XXXX  so they are well aware they failed to meet this condition as well as I also have a loan with XXXX that uses XXXX XXXX XXXX as a lender ) I am needing a letter from you noting this loan is illegal and not enforceable as they are not operating under correct guidelines as a regular lender or 'installment ' loan lender. 

As you may be familiar and any simple internet search will show you, XXXX XXXXBalance Credit has been under investigation as well as sued ( and pursued ) by multiple states. ( unfortunately, Florida is not proactive on consumer affairs ) As noted XXXXXXXX XXXX  facilitates rent-a-bank installment loans up to 225 % APR through a variety of payday and online lenders, including Balance Credit XXXX XXXX, XXXX, XXXX, and XXXX XXXX XXXX 
XXXX XXXX/Balance Credit originates , underwrites, services and enforces these loans, even claiming the loans on its financial reports. However, in states where 160 % APR is legal, Balance names itself as the lender in the loan contracts, but in states where such APR is illegal, Balance instead names a Utah-state chartered bank as the purported lender and Balance as the loan servicer. Then, after the consumer has executed the loan, Balance purchases 95 % of the loan from the bank and maintains it thereafter. Balance runs this rent-a-bank scheme to purposefully skirt state law, including in Florida where I signed my loans and where the maximum interest rate caps out at 30 %. ( based on Florida law, Balance/XXXX XXXX can not consider itself as a installment loan based on length of the loan, the amount financed being over {$1000.00} initially ; and that I have more than one on the database ) As you can see by their response to me on XX/XX/XXXX, they are claiming XXXX is governed by both federal banking laws and the laws of the State of Utah. Balance Credit is an authorized servicer of XXXX XXXX, a division of XXXX, retained to perform certain marketing functions for the benefit of XXXX XXXX. In signing the Loan Agreement, you expressly agreed that " You acknowledge and agree that this Agreement is subject solely to applicable Utah and Federal law. '' Based on all of the litigation against them, as noted in the attached article these Rent-a bank schemes are of questionable legality. Lenders pick and choose where they lend, generally avoiding states that vigorously enforce their laws. ( Florida being one that does not ) It appears this is not the first complaint re : XXXXXXXX XXXX XXXX, as I have attached a prior letter to you from XX/XX/XXXX regarding the abusive lending practices of XXXX XXXXXXXX XXXX 

XXXX on XX/XX/XXXX they mailed a letter to me and XXXX  : Utah Dept of Financial Institutions noting that Balance Credit is a 'servicer ' for the XXXX XXXX XXXX. They denied illegal lending practices and that Utah DOES NOT HAVE A MAXIMUM RATE OR CHARGE FOR LOANS. 
They claimed they are exempt from Florida laws. 

THEY DENIED THEY ARE A PREDATORY LOAN though it is clear by numerous other complaints to Utah ( see attached ), other lawsuits as well as myself they are a predatory lender. They even do not write loans for certain states that will go after predatory lenders ( unfortunately, my state of Florida does not! )