Consumer complaint received 2023-05-24
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Problem with the payoff process at the end of the loan — 
Company: REGIONS FINANCIAL CORPORATION (OR)

To whom it may concern : I want to share my experience with the CFPB and respectfully request that someone look into the lending and collecting policies of EnerBank USA. 

In XX/XX/XXXX, we took out a home improvement loan with EnerBank USA for {$19000.00}. We had two years - no interest- to pay it back. The full amount was due by XX/XX/XXXX. 

We paid monthly on the loan and planned to pay the remainder off by XX/XX/XXXX. I had a family emergency in XXXX and XXXX and by the time I was able to think straight again, my husband and I realized we'd missed the XX/XX/XXXX deadline. My husband went on the EnerBank USA website and thought he found the full amount owed and paid it off on XX/XX/XXXX. He tried to call EnerBank to see if the loan was now closed but after an hour on hold, he wasn't able to get through. I then took over and after two hours on hold - was disconnected once and had to call back, I finally reached a customer service representative who said that we owed over {$7000.00} dollars in interest because we didn't pay the entire loan off by XX/XX/XXXX. From XX/XX/XXXX, on, we were being charged 17.99 % interest on {$19000.00} even though we'd paid half the loan off by XX/XX/XXXX and the whole loan off by XX/XX/XXXX. That didn't matter to EnerBank because they charge 17.99 % daily on the full loan amount even though we'd paid half back over the two years. Yes. We had a signed contract with them and we knew that they charge exorbitant interest rates if the loan isn't paid in time and we had every intention of paying it in time but due to a family emergency, we were delayed. 

I explained the situation to the customer service rep and she said there was nothing we could do. I asked to speak with a manager. She said the manager would tell me the same thing. I told her I still wanted to speak to a manager and see if they could reduce the penalty since we'd paid 1/2 the loan off by XX/XX/XXXX and the full loan two months later. She put me on hold and after a half hour she came back to say no manager was able to speak to me. I told her I would wait and she told me that someone would call me back in 24 hours.

I waited 24 hours and no one called. 

I then began to do extensive research on EnerBank and found that my experience was similar to so many customers and the reviews were scathing. I went on the XXXX website and found hundreds if not one thousand reviews of their predatory habits. I read about people losing their homes because of them. Here are the key issues I'd like you to look into : Their online portal : It is almost impossible to get a payment history. I had to go through two years of XXXX banking statements to make sure I knew what we'd paid to date, as EnerBank doesn't have that information on their online portal. 
Their customer service : Customers wait hours on hold and never actually get to speak to a manager Their unwillingness to work with customers : There was no attempt to even discuss my situation with anyone. Thankfully, my husband and I were able to come up with the money once we realized they'd not budge and would continue to tack on 17.99 % interest every day on a {$19000.00} loan that we'd paid off. A manager called me back and left a voicemail for me to call them back at the toll free number. No extension- just call the toll free number and wait again, which I did, only to be told that the message the manager who'd called me had was 'No- nothing could be done about the interest. ' End of story. 
When I paid off the interest penalty today ( {$7300.00} ), I was on a recorded line. I explained to the customer service representative that I was not upset with her but that I was going to share my thoughts about EnerBank on the recorded line because I think their business practices are shady and their unwillingness to even speak with the customer and come up with a reasonable solution is criminal. 

In addition to researching customer reviews on EnerBank, I see that they are offering huge sign-on bonuses for people to work in their collections department. Of course they are. The only way to pay off a loan with them is with cash/checking/debit. You can't pay it off with a lower interest credit card so you are forced to pay their daily interest rates ( which are huge ) until you have the cash to pay it off. I can completely see how easily someone can go under if even one thing goes wrong with their loan. 

Of course, I made a mistake getting distracted in XXXX and forgetting to pay off the balance. That was my error and it cost my husband and me but I worry about the people who can't come up with the cash to pay the huge interest they charge and who try, desperately, to get through to someone at EnerBank to help come up with a payment plan but are told there is no flexibility, no willingness to even discuss or hear a customer 's story. 

I have filed a complaint with the XXXX. I let the company who did our home improvement ( who directed us to work with EnerBank ) know about our experience and they are going to share it with the team of other companies they know who use them. That company- XXXX 's XXXX in XXXX, XXXX, tried to reach out to their contact at EnerBank but never heard back. 

If you need any further information, please let me know.