Consumer complaint received 2021-06-21
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: American First Finance, Inc. (GA)

American First Finance reported my cash purchase to XXXX credit bureau as an Installment account, CLOSED with a High Balance of {$8300.00}, which is inaccurate. Per the rental-purchase agreement, # 3 Lease Payments, it states, a customer must rent the property for a minimum of 2 months. After the initial minimum period, the customer can renew the agreement, purchase the property, or return the property. However, the day that I opened the account, the salesman, XXXX XXXX XXXX XXXX, and American First Finance Dept, all knew I was purchasing the property, using the EPO option. The last page of the agreement lists the CASH price of the property. 

Under # 6 Estimated Fair Market Value of the Leased Property, the property is valued at {$2200.00}, including {$69.00} delivery fee, even though it is not listed ( see last page of contract ). 

The Early Purchase Option ( EPO ) states, during the first 101 days the customers price would be the fair market value less 100 % of payments made, plus taxes and/fees. The EPO option expires on XX/XX/XXXX. 

I opened the account on XX/XX/XXXX ; I paid {$1000.00} down plus {$53.00} processing fee. Since you must allow AFF to debit your checking account for payments via ACH transfers ; I chose the bi-weekly option. A payment of {$140.00} was made to AFF on XX/XX/XXXX and another one on XX/XX/XXXX. 

On XX/XX/XXXX I paid the account in full in 42 days. That day I made 2 payments one for {$500.00} and another one for {$690.00}. I had to contact AFF customer service that day because each time the system gave a payoff amount and I paid that amount, another payoff amount would display ; so, I called and reported the problem. 

Per AFFs rent-purchase agreement, this was a CASH purchase. I have never known cash purchases being reported to credit bureaus. In addition to that, AFF is reporting inaccurate information to XXXX 

My initial payment on XX/XX/XXXX was {$1000.00} ; 1 ACH payment of {$140.00} on XX/XX/XXXX ; 1 ACH payment on XX/XX/XXXX, and the final payment of {$1100.00} on XX/XX/XXXX, even though AFF only debited {$1000.00} from that payment. 

AFF is reporting that I had a high balance of {$8300.00}, XXXX balance of {$1100.00}, scheduled amount of {$340.00} ( which is NOT in the payment schedule on page 1 of the agreement ), and a paid amount of {$210.00} ; a XXXX balance for XX/XX/XXXX with an amount paid of {$2300.00} ( {$2200.00} x 6 % sales tax ). My calculations are as follows : XX/XX/XXXX balance was {$2300.00}, and I paid {$1100.00}. XX/XX/XXXX balance was {$1100.00} with a paid amount of {$1100.00}. This results in an overpayment of {$45.00}. 

Then on my online account information page, AFF is reporting the account as PAID OFF, with Total Payments being {$1500.00}. Where did this figure come from? I made total payments of {$2300.00}. 

Lastly, under # 27 Credit Reporting and Disputes, it states : You agree that we may make inquiries concerning your credit history and standing, and we may report information concerning your rental performance under this Agreement to credit reporting agencies. Late payments, missed payments, or other defaults may be reflected in your credit report. You must send notices of disputed information related to this Agreement, including an instrument attempted to be tendered in full satisfaction, by writing to our address listed on Page 1.

Nowhere in the agreement does it state American First Finance SHALL report EPO/CASH purchases to credit reporting agencies, nor does it state rentals, missed/late payments, and other defaults SHALL be reported. It states it MAY be, which means AFF decides what/who to report and what/who not to report. This is something that every customer should be made aware of before they do business with AFF, prior to signing an agreement ; and should also be included in the agreement as well. I paid the property off in FULL in 42 days, it was a cash purchase. Had I known it would show up on my credit report, I would not have done business with AFF. 

I should get into the habit of checking my credit report because this cash purchase has been on my credit report for almost a year with an additional 6 years before it is removed. CLOSED accounts on a credit report does not help your credit score, it hurts your credit score. AFFs reporting hurts their good customers who pay on time and is never late or miss a payment, as well as the bad customers who do not pay on time, miss payments, and default on the agreement. They treat both the same, in my opinion. 

I tried contacting AFF, I sent them an email on XX/XX/XXXX, but they did not respond.