Consumer complaint received 2020-06-12
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: Harpeth Financial Services, LLC (VA)

On XX/XX/2018, I entered into an agreement with XXXX online for a line of credit. I have been a customer since. Each month I receive a statement that details informaiton on the current amount due, minimum payment, interest owed, and grace period. The statements list the amount that must be paid by the due date in order to avoid paying the interest for that period. The grace period date has been included on every statement since XX/XX/2018. However, when I looked at the current statement I noticed that it was missing the grace period. I called the customer service department and spoke with a representative named XXXX, who stated she was at the corporate office in customer care. I asked XXXX why the grace period information was no longer on the statement and she stated " we removed the grace period information from the statement because consumers were getting confused. '' I said that sounded to me like predatory lending and more of a way for consumers to not know what the grace period is, so the company can rack up interest fees. XXXX then placed me on hold and stated she would speak with a supervisor. Once she returned she stated the supervisor told her that " they do not have to list the grace period on the statement, by law they only have to list it in the agreement. '' We then read the agreement together, that is signed by both myself and a company representative XXXX XXXX. On page two of the eight page agreement it states " Grace Period. If you pay the Total Outstanding Balance ( i.e. previous balance plus new cash advances minus payments and credits ) in full before the end of the grace period as designated on your periodic billing statement, then no interest will be imposed for that billing cycle. '' I asked XXXX to explain to me again why the grace period was removed. She again stated that it was because of " consumers being confused about the due dates. '' I then asked her to read to me the statement in the executed agreement regarding the grace period, which she did. Then I asked for the legal department, because they could not change the terms of our agreement without sending me an amendment. XXXX then stated that " at a monthly meeting '' she was told " by management '' that " the agreement you signed is tied to accepting the loan and we do not have to show the grace period on the statement. Also, on the executed agreement is a clause on page three that states " Amendments. You agree that we may change any of the terms of this Agreement, including the amount and method of computing the Periodic Interest Rate, at any time. We will provide you with 45 days prior notice of such changes as and when required by law. If we notify you of changes to this Agreement and you do not agree with these changes, you must notify us of your decision to opt-out of the changes in writing within 45 days of the date we give you notice of the changes. If you opt-out, we will automatically close your Account, and you can then repay any remaining balance over time pursuant to this Agreement. '' I was not notified in writing of any changes or given an opportunity to opt out.