Consumer complaint received 2018-10-15
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: Innovate Managed Holdings, LLC (TX)

I had initially gotten a loan through through a company by the name of XXXX XXXX XXXX  in XXXX of 2016. The payments that i had agreed to was around 380 a month, and i would usually pay early payments, or sometime even divide my payments up into 4 payments a month, and pay every week, as well as paid extra to pay down the balance. 8 payments later i receive a phone call from a company by the name of Innovate Auto Financing telling me they purchased my loan, and gave me the website where to set up an account to make payments to going forward. At first i did not think anything of it until i had asked if i had any paperwork to confirm, sign, or agree to and they told me that it had already been taken care of. I expressed how i didn't agree with this, however they informed me that I really did not have a choice that it was between my previous loan company and themselves. I then googled this companies name and saw nothing but negative remarks on XXXX, XXXX XXXX XXXX, their own company website, etc. on how they always buy existing loans from other companies, they have rude customer service, incorrectly distribute your payments with no explanation, they do late and incorrect credit reporting etc. I did not want this company to assume my loan due to this.I called XXXX and they told me that they had none of my information including contracts, proof of previous payments, or anything that to do with my account because it had already been sent to them. They did not report my payments or account balances regularly, and only to one of the three bureaus. I immediately began to receive calls soon after stating that i had an overdue balance of XXXX dollars that never was received from the previous company. I called Innovate auto and explained to them that i did in fact make the payment, and also provided bank statements and proof of the payment i made. They would place me on hold and transfer me to a supervisor where id leave a voicemail and wait for a callback, I never would get one.They told me that they could not verify the payment unless XXXX sent it to them and continued to attempt to collect payment, call me continuously, charge interest and late fees to my account for months until they located the payment i assume. Numerous times i would have to call my banking service and have customer service on the line in a three way call in order for them to confirm a payment that had been made months and months in advance and that they could not locate, only to still be charged interest on the payments that they could not locate. Every month after i made a payment, i would receive a statement in the mail letting me know of the payment i had due, as well as the distribution of my last months payments towards interest/principle that would fluctuate. Some months it would say that XXXX of the XXXX dollar payment i made went towards interest, while a negative amount was applied to my balance. Sometimes it would show that only a couple tens of dollars went toward it. There was never an average or simple interest distribution towards my accounts principle that can be calculated to see where the money i was paying would go. Every time i called Customer service was in fact rude. They would hang up on me at times, as well as tell me things like " they're not mathematicians '' when i would ask questions as to why i was being charged so much. At times i would pay extra, they would take the extra that i payed and apply it to the next months balance, and continuously keep doing that instead of applying the full payment to my account. I asked them why and they said if i wanted it to go towards my account i would have to call them, and let them know how i wanted it applied every payment. I grew tired of the inconsistencies, so i finally called and asked the company to send me a breakdown of my payment history. After many months of steadily asking weather they were going to send me anything, what they sent me was to printed sheets of paper that showed three or four payments a month, when i only made one payment a month with this company. It didn't show a starting balances, ending balances, my rates, none of my information, etc at all, just the multiple payments with different distributions in each one. This paperwork too was unofficial, and inaccurate so i began to question the morality of it all and asked for them to send me a copy of the contract they received from the previous Company. They then told me that they are not going to send me one because i should have had all of that information when i left the car dealership. I told them i knew what i signed for from the dealership but i was curious as to see what they had and were showing to see why i had been charged so inconsistently. They then told me that i had an interest rate that is above the legal limit in the state of Texas. When i informed them about this they'd either hang up on me, transfer me to a voicemail which id never receive a callback, or they'd just simply be smart and argue with me. They belittle you and tell me things like your just trying to get a free car because you cant afford one and numerous other demeaning things that frustrate you to the point that you just don't want to deal with them anymore. Instead they should be informative, fix your account and adjust your payment distribution to where your account shows a correct balance.since they have not provided me me with any paperwork i have stopped paying them and stored the car. They continue to report late payments, despite attempting to correct my accounts balances, or even provide me with any type of paperwork.