Consumer complaint received 2022-02-17
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: Harpeth Financial Services, LLC (TN)

I opened a flex loan through Advance Financial 24/7 in XX/XX/XXXX. I made automatic bi-weekly payments from XX/XX/XXXX through XX/XX/XXXX. I called Advance Financial because I didn't understand why the statement fees were so high. I also revoked the automatic payment consent in XX/XX/XXXX due to financial hardship. I was being charged an astronomical amount in " customary fees '' which was in addition to the interest fees I was charged. I was unaware of those fees. I knew about the interest rate, but not the customary fees. I spoke to a customer service representative who explained how the customary fees and interest work. She said that since I was experiencing a hardship that I would not be charged any further interest and that most of the customary fees would be credited back to me because I believed I was misled. 

I borrowed a total of {$4700.00}. I paid a total of {$4700.00} back to them. I was charged {$8700.00} in customary fees and {$810.00} in interest. All of that added together equals a total amount owed of {$14000.00} in less than 8 months ' time. After subtracting my share of payments, it equals {$9500.00}. My statement shows that $ XXXX was written off ( $ XXXX for the principal, $ XXXX for the customary fees, and $ XXXX for interest ) and then there was an adjustment on the same day ( XX/XX/XXXX ) for a total of $ XXXX ( $ -0 for the principal, $ XXXX for the customary fees, and $ XXXX for interest ). This would mean that I still have a balance of {$7700.00} after my payments and their adjustments. Since I was told most of the customary fees would be credited back, I was under the impression that I no longer owed them anything. I did not receive any letters, statements, or phone calls stating that I still had a balance. 

To my surprise, and nearly 3 years later, I was served court papers stating that I owe a balance of {$5700.00} plus {$1800.00} in attorney fees. They are seeking a judgment in the amount of {$7800.00}. The Plaintiff 's name on the court papers is listed as Harpeth Financial Services , LLC d/b/a Advance FinanciaXXXX in c/o XXXX XXXX XXXX XXXX. I made an appearance in court on XX/XX/XXXX, which was then rescheduled for XX/XX/XXXX to allow time for Advance Financial to mail me a ledger and for me to get ahold of someone at The XXXX XXXX to see about making a settlement offer. The person who appeared on the Plaintiff 's behalf was not authorized to grant a settlement or do any type of negotiating, so he advised me to contact XXXX XXXX XXXX again to discuss my options. I contacted XXXX XXXX XXXX, and they told me the only way I could submit a settlement offer was to first agree to a default judgment. Once I agreed to that I would need to set up a payment arrangement, and then I'd be able to submit a settlement offer. XXXX XXXX XXXX said my offer would then be sent over to Advance Financial for their review. I was not willing to agree to a default judgment, so I appeared in court on XX/XX/XXXX, and spoke to the plaintiff 's representative. Again, there was nothing he could do, so I requested a trial hearing which is scheduled for the first week of XX/XX/XXXX. I would like to get to the bottom of this, but when I call Advance Financial, they tell me to call XXXX XXXX XXXX. When I call XXXX  XXXX XXXX to speak to the attorney, they say he isn't available and that all I can do is agree to a default judgment in order to submit a settlement offer. 

I just don't understand how it is even legal to charge these customary fees in addition to the high interest rates. I'm also very upset that they never contacted me regarding a past due balance until I received court papers nearly 3 years later. I wonder how many other people fall victim to this. They also said that I electronically agreed to those fees when I accepted the loan, but apparently, I must have overlooked that information. Either that, or it was never presented to me in the first place. I reviewed the documents I supposedly agreed to, but I do not recall seeing that specific form. In fact, I believe their software glitched while I was trying to accept the loan, so I had to contact Advance Financial for support. I will have to go through my phone records to see the exact time I contacted them. 

Since I was never informed of the debt, I firmly believe it is an unfair debt collection practice. Harpeth Financial Services , LLC never contacted me ( I never even heard of them ), Advance Financial never contacted me, and XXXX XXXX XXXX never contacted me until I received the court papers a few months ago. This is not right. The balance isn't adding up based on the statement they provided me last month, and the attorney fees are outrageous.