Consumer complaint received 2021-06-14
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Problem with the payoff process at the end of the loan — 
Company: OneMain Finance Corporation (TX)

XX/XX/XXXX XXXX XXXX XXXX, XXXX & XXXX OneMain Holdings , Inc. for OneMain Financial Services wholly owned by XXXX XXXX XXXX XXXX XXXX, IN XXXX PH : ( XXXX ) XXXX XXXX : OneMain Financial Services Loan Number XXXX XXXX XXXX, Borrower XXXX XXXX XXXX XXXX, Texas XXXX PH : ( XXXX ) XXXX Dear Mr. XXXX, I need your assistance to understand the financing as well as what monies I ultimately still owe to OneMain Financial Services, formerly Springleaf Financial Services of Texas , Inc. The loan originated in XX/XX/XXXX by Springleaf Financial Services , Inc, which OneMain Financial Services [ OneMain ] subsequen

tly purchased. I sought assistance from Springleaf Financial Services, which at that time I was unaware were seen as a primarily sub prime lender. I wanted to consolidate some debt due to an upcoming event that I was
aware of. I was not in such a position where I required a sub prime lender whom needed collateral etc. ; please take no offense to that statement. I understand that this failure rests with me, but the calculations do not.

Unfortunately, my took my vehicle being stolen, which OneMain has a lien against, for me to take a look at this loan. As you are aware if my insurance company accepts the loss, they will pay OneMains lien first before I
receive a penny of the equity in my car. To my dismay, there are issues with the loan that must be addressed to ensure that I have not been overcharged, mislead, etc on this entire agreement that is held between OneMain and me at this time.

My concern is the current amount due on the loan is inaccurate and there are numerous reasons for this that I will do my best to explain to you. This letter is a request to provide a detailed analysis of this loan from XX/XX/XXXX, including the marketing sent to me, to where I stand today. I will do my best and hopefully a brief description as well of why this is. 

In an effect to consolidate my debt, I unknowingly accepted a PRECOMPUTED loan from Springleaf Financial Services located in XXXX, Texas on XX/XX/XXXX for {$16000.00} for a term of 48 months with a monthly payment of approximately {$430.00}. For a visualization of the closing, something that I have never experience before, I was given a tablet to initial every page of the loan. I was not provided with the loan documents and walked through each page which is normally what lending institutions do. I was told I had to put my car up for collateral or I would not get the loan. I can not discuss the interest rate that I obviously did not see as it is just frankly too embarrassing coupled with the other factors that I continued to move forward with the loan, but I did due to some inner desperate anxiety I was experiencing at the time. 

I did not know any specifics of the loan outside that I would receive checks to send to the credit cards that would be paid off. During this period, I checked all three credit bureau reports and to my utter dismay, OneMain had reported a loan for {$22000.00}, which actually lowered my credit score which had been better but was holding around XXXX at that time. I say this because I purchased my home in XXXX with a XXXX XXXX of XXXX. I immediately contacted the XXXX, Tx XXXX where I obtained the loan and was told that was because it was a precomputed loan, which I had never, heard of, which placed all the interest in the loan before it accrued. I was mortified. They said that is how all of their loans were done and there was nothing that could be done and it was not a big deal. To me it was HUGE however, but there was nothing I could do. 

In XX/XX/XXXX, I became aware of additional life issues that could affect me financially ; hence, I contacted the XXXX office to ask them for some assistance, such as reducing my payment. To attempt to do this, I had to be approved, which I was, but only for 1 month. If I needed additional time, I would have to call them again and request such. Which I did. During XXXX of these conversations, I was informed that XXXX had been purchased by XXXX. In the discussion, we somehow discussed what type of loans were now offered, which a precomputed loan was no longer a product offered by XXXX, and that there was some legislation surrounding it. I believe inadvertently, the representative informed me that some of the loans had been converted to simple interest loans. Of course I took this opportunity to request being grandfathered into that as well. However, I was not so lucky. I was told that the only way I could do this was reapply for a new loan, which I did not want to do. I could not understand how they could do some but not all the loans that were purchased, but again my hands were tied. 

My luck was not improving, which meant that I was contacting them on a monthly basis to ask for this temporary 1 month modification. I finally took a leap of faith and asked if there was anyway we could get around this monthly modification product as it was very stressful. I was informed that the only way to be approved for a permanent modification was to make a new application. This is not something I wanted to do as I did not want to extend the loan, but I asked if this would he the opportunity that I had been waiting for to turn my loan into a simple interest loan. I was told it was not, yet the correspondence that I received from XXXX stated something that it did, but monthly it would revert back which seemed mighty ridiculous but again my hands were tied. I participated in this monthly program until XXXX of XXXX upon which I was congratulated and informed that I was approved for the permanent modification. 

This is where it gets extraordinarily confusing and not transparent what so ever. I have included all this correspondence. As of today, I have an approval letter with no balance of what AMOUNT WAS BEING REFINANCED. This final letter does lead off with a modest reduction in the interest rate but this is still too embarrassing to discuss, then the new monthly payment, and JUST TODAY I discovered in very small print that the loan was extended out for XXXX ADDITIONAL MONTHS. Prior to this letter in XXXX, XXXX, XXXX, and XXXX of XXXX, I received letters of the monthly modification, but only the first XXXX in XXXX mentioned any unpaid balance that was being worked with, which was stated to be {$10000.00}. During this trial period stated in the first letters, I also discovered that the loan was to convert to a simple interest bearing loan. 

I did not take notice to these issues until now because common sense told me that the long would be a little longer and given my prior experience with that office, I left it at that. Today I am a victim of auto theft and I can not be passive about any concerns that I have. 

I performed several amortization tables and other analysis to make sense of my concerns but they only became worse and additional issues screamed at me. I can not come up with any rational explanation of what amount was started with nor how the loan computed interest, even using the first, highest interest rate. Regarding the term, I know I did not agree to an additional 60 months ; however, even if you use that as well as the approximate {$10000.00}, the loan is paid off months earlier than the XXXX that is proposed. There were some other oddities that I discovered, but I am certain just the above would cause you to pause or I sure hope it will. 

My concern now lies in EVERYTHING ABOUT THE LOAN, THEN ITS MODIFICATION, SPECIFICALLY HOW WAS EVERYTHING AND ANYTHING COMPUTED? This analysis will provide the standing on what additional monies, if any, are owed to OneMain. This is an URGENT MATTER for the result impacts the conclusion of this theft.

Please understand that I am not asking for a pay off amount but that will be forthcoming so it may as well be provided in addition to the other analyses, if such exists and how, of course, the number was calculated. 

I did perform some research on just the definition of precomputed loans and when they are used. I found over and over that it is for individuals that did not want to use their XXXX XXXX and had a title to put up as collateral. XXXX was well aware of my XXXX XXXX and my desure not to put up my vehicle as I had never been asked to do anything of this sort prior in any circumstance. To make a bad situation more sinister, I was informed that the title to the vehicle can and should be returned to the borrower after 90 days. I never requested this, in fact, XXXX has the title to my vehicle in their possession. 

Please do not hesitate to contact me at the above number if you have any questions of any sort. Thank you again in advance for taking this matter seriously. 

XXXX regards, XXXX XXXX XXXX : XXXX. XXXX XXXX letter to request a loan with Springleaf XXXX. XXXX XXXX loan XXXX dated XX/XX/XXXX XXXX. Modification letters from XX/XX/XXXX to XX/XX/XXXX As stated I do not have a copy of the agreement concerning the modification of this loan, nor have I ever seen any.