Consumer complaint received 2024-07-12
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: Westcreek Financial (MI)

I used Koalafi because the car repair shop worked with them to help clients pay off car repairs. I had around {$2200.00} worth of repairs that I couldnt afford to pay all at once. I was told that this company bases their monthly payments on ones income and not their credit. Because I had no other option, I agreed to the terms of the lease. It wasnt abundantly clear when I was signing up how much the monthly payment obligation would be, but because I had used a similar company at the same shop previously, I assumed it would be similar in pricing and terms. I didnt make much, but this was my only option, and I assumed it couldnt be more than {$300.00} a month. 

Come to find out, the payments would be {$410.00} a monthan outrageous amount, but I had no other choice. I struggled to make this payment every month but successfully paid each month from XXXX through XXXX. At the end of XXXX, I was dealing with financial hardships and knew that I wouldnt be able to make the {$410.00} payment in XXXX. I contacted the company to see if there were any options to postpone the payment for one month and resume as normal in XXXX. I initially reached out via email but was told I would have to call to make these arrangements, so I did. Unfortunately, I didnt think to record the conversation or write down the representatives name, but I explained my situation and asked if I could skip a payment. 

In similar situations, companies typically allow you to skip a payment and move it to the end of the agreement ( so if I was supposed to be fully paid off in XXXX, after this, I would be paid off in XXXX instead ). I was told that this arrangement was fine and that my payment for XXXX would be postponed, with payments resuming as usual in XXXX. I was relieved because I didnt know what else I was going to do. 

Looking back, I wish I had sought out another option because about a week after my XXXX payment was due, I started receiving calls about my account being past due. I explained the situation and agreement to several different representatives, becoming increasingly frustrated with the lack of communication on their end. I told them not to contact me until XXXX after I made my next payment as agreed upon. 

It is currently XXXX, and XXXX still trying to get my finances back in order. To be proactive, I wanted to see if I could get a new lease agreement to lower my payments from {$410.00} to around $ XXXX {$250.00} each month. I was told that nothing could be done until my account was up to date. This confused me because they had previously told me my payment schedule would be fine if I postponed XXXX payment. 

I was informed that the only way they could even consider reducing the monthly payment was if I brought my account up to date, requiring me to make a payment of over {$800.00} ( {$410.00} for the missed payment and {$410.00} for the upcoming payment ). This was outrageous because if I couldnt pay {$410.00}, how could they expect me to find {$800.00} in one month? 

I was already frustrated from the fact that since I didnt pay off the {$2200.00} in 90 days, they now said I owed them a total of over $ XXXX entire value of my car. I have already paid {$1700.00} toward the {$2200.00} XXXX agreed to borrow, and now theyre telling me I have to pay an extra {$2500.00} just because I couldnt pay it in 90 days? I believe the practices of this company are predatory because their policies werent made abundantly clear. 

I think they count on customers being desperate and not having another choice. I believe they hid the fact that after 90 days, I would owe the entire value of my carwhich isnt even paid off from my credit union financingjust as many companies hide predatory policies in their terms and conditions. I was then told that they would be reporting to XXXX every month that my account is past due, which I was also not aware of. Now I will have to suffer credit marks each month that XXXX cant magically come up with an additional {$410.00}.