Consumer complaint received 2019-08-30
Product: Payday loan, title loan, or personal loan — Payday loan
Issue: Charged fees or interest you didn't expect — 
Company: COMMUNITY CHOICE FINANCIAL, INC. (SC)

Back in XXXX, when I was a resident of California, I foolishly became victim of the Cash Central predatory payday loan business. Cash Central duped me into loans for which Cash Central charged outrageous fees. Cash Central lured me into this trap and collected thousands of dollars. As recently as today, Cash Central has tried to claim it did me a favor by waiving more than {$3400.00} in additional fees it could have charged. Cash Central is trying to appear as the consumer hero with this action. Cash Central did waive ~ {$3400.00} but only when I filed a complaint. There are two different ways to look at what Cash Central did as wrong. The first is to consider the loans I took as payday loans. In California, the limit on a payday loan is 15 % of {$100.00} borrowedor {$15.00} for every {$100.00} borrowed. Payments were due on my paydays. Therefore, these loans were payday loans. No if, ands, or buts about it. By definition, payments were due on paydays making these payday loans. I have filed repeated complaints with the XXXX XXXX  XXXX, Consumer Financial Protection Bureau, Federal Trade Commission, and California Office of Business Oversight and will continue to do so. I have repeatedly attempted to resolve this directly with Cash Central and its parent company, Community Choice Financial. I have now been told three times to call XXXX to speak to a loan agent to resolve this matter. The first time I did, I clearly was connected to a call center not located within the United States. The next two times, the loan agent had no idea what I was calling about. I am being sent in circles as a way to deter me from pursuing my claims. I have done extensive research into this issue. In late XXXX, early XXXX, the state of California finalized a settlement against Community Choice Financial. Like I am now doing, California accused Community Choice Financial ( Cash Central ) of overcharging borrowers. As an article I found stated, Community Choice Financials recent government action over unscrupulous lending practices is more than a little disconcerting. I am a victim of this unscrupulous lending and am fighting for justice. Another article states A California payday lender is refunding about {$800000.00} to consumers to settle allegations that it steered borrowers into high-interest loans and engaged in other illegal practices, state officials said. Again, I am one of these borrowers steered into a high-interest loan! The article continues to state that Californias  settlement against Community Choice Financial involves alleged violations regarding administration of payday loans, which are capped at {$300.00}, and the steering of borrowers into consumer loans of more than {$2500.00} to avoid rate caps. California law limits interest on loans of up to {$2400.00} at between 20 percent and 30 percent, but there is no cap for loans of {$2500.00} and larger. Steering consumers into  higher-cost loans to circumvent statutory interest rate caps is abusive, said XXXX XXXX XXXX, commissioner of the Department of Business Oversight. Consumers deserve protection and access to lending markets that are fair, transparent and comply with the law, she said. Every single aspect of my situation is a direct example of what California settled against Community Choice Financial. On XXXX XX/XX/XXXX, I borrowed {$200.00}. With the payday loan limit of 15 % per {$100.00} borrowed, I should have only paid back {$230.00}. I paid back {$230.00}. On XXXX XX/XX/XXXX, I borrowed {$250.00}. With the payday loan limit of 15 % per {$100.00} borrowed, I should have only paid back {$290.00}. I repaid {$290.00}. This is when the unscrupulous steering of me into a high interest loan happened. I stupidly contacted Cash Central again and was steered into borrowing {$2500.00}. As stated above, California law limits interest on loans of up to {$2400.00} at between 20 percent and 30 percent, but there is no cap for loans of {$2500.00} and larger. Cash Central purposely steered me into this higher-cost loan to be able to circumvent statutory interest rate caps. Had Cash Central kept the loan below {$2500.00}, the rate would have been capped at 20-30 %. In  the interest of Cash Centrals profits, I will use 30 % as the amount. On a loan of {$2400.00}, 30 % is {$740.00}. Had I borrowed {$2400.00}, I would have had to repay {$3200.00}. Instead of this honest form of lending, Cash Central steered me into borrowing $ XXXXin fact, I was told that was the only option. If Cash Central could lend me {$2500.00}, it could lend me {$2400.00}. This is deceptive, predatory lending. I made two payments of {$190.00} each ( total {$380.00} XXXX. At the rate of 30 %, this would reduce my owed balance from {$3200.00} to {$2800.00}. Cash Central, however, took advantage of knowing I was in a financial crisis. I would never be doing business with them if I was not. Cash Central enticed me into refinancing and getting an additional {$1200.00}. I foolishly agreed. I had now borrowed {$2500.00} plus {$1200.00} and repaid {$380.00}. At a fair rate of 30 %, my fee should have been {$1100.00} for the {$3700.00} borrowed. To be free of my debt to Cash Central, at the fair rate of 30 %, I should have only had to pay a total of {$4800.00}. Again, at this point, I had repaid {$380.00}, so my balance due should have been {$4400.00} if Cash Central acted in a fair, just non-predatory manner. I continued making payments. I continued to struggle financially due to the trap Cash Central had put me in with the high cost of the loan. By XX/XX/XXXX, I had paid a total of {$4900.00} for the {$3700.00} I had borrowed. I had paid {$94.00} more than I should have for a fair 30 % loan. I kept paying and paying. By XX/XX/XXXX, I had paid an additional {$1400.00}. By XX/XX/XXXX, I had paid a total of {$6300.00} for the {$3700.00} I borrowed. I paid {$2600.00} in fees72 %!!!!! This was {$1500.00} more than the {$1100.00} had the loan been issued at the fair and just rate of 30 %. At this point, I was financially drowning and did not know how to break the cycle. Cash Central enticed me with another refinance saying my payments would be lowered. Of course, I needed lower payments so I accepted the offer. As a result, Cash Central deposited {$100.00} in my checking account and my payments dropped to {$200.00}. To keep up with the math, I had now borrowed {$3800.00} and repaid {$6300.00}. On a fair and just 30 % loan of {$3800.00}, the fee would be {$1100.00} meaning once I repaid {$4900.00}, I would be paid in full. Remember, I had paid {$6300.00} at this point. I should have been more than paid in full but no. I kept paying. I made two payments of {$200.00} adding an additional {$410.00} to the {$6300.00} I had already paid bringing my total to {$6700.00} for {$3800.00} borrowed. I paid {$2900.00} in fees78 %!!!!!!! At this time, I filed a complaintand yes, Cash Central waived the remaining due. Can you imagine? Had I paid another {$3400.00}, my total would have been {$9700.00} for {$3800.00} borrowed!!!! {$5900.00} in fees!!! 157 %!!!!!!! The 78 % I paid is disgustingI have no words for 157 %! Community Choice Financial ( Cash Central ) is not the hero for waiving the {$3400.00}. Community Choice Financial ( Cash Central ) steered me into this high cost loan cycle. Had they been willing to lend no more than {$2400.00} with the 30 % cap, it would have been a completely different story. I stand by my assertion that I am one of Community Choice Financial ( Cash Central ) s victims. As the California settlement against Community Choice Financial ( Cash Central ) dictates, I am due a refund of the excess fees I paid. I paid {$2900.00} when 30 % of what I borrowed is {$1100.00}. I am due a refund of the excess paid in the amount of {$1800.00}. I stumbled upon this settlement when showing a friend why she should not do business with companies like Community Choice Financial ( Cash Central ). I demand resolution in the form of the refund I am owed based on the settlement California entered into against Community Choice Financial ( Cash Central ).