Consumer complaint received 2016-03-09
Product: Consumer Loan — Installment loan
Issue: Taking out the loan or lease — 
Company: Avant Credit Corporation (VA)

Avant Credit was XXXX of several online lenders that contacted me via email XX/XX/XXXX, I believe, in response to an online lending application made through XXXX XXXX. I needed the money to offset additional college expenses for my daughter, so I accepted the loan offer and paid this loan on time without default at any point with an interest of about XXXX % to XXXX % interest. ( I can not obtain a copy of the alleged origination documents. ) During the initial conversation and on a subsequent loan offer, they advised they were licensed to offer loan products in Virginia. I agreed to the second loan terms, secured by my checking account about XXXX, XXXX. This was a second online lender that had been contacting me after loan application a while ago by my daughter. Shortly, thereafter, I began receiving work and personal calls indicating I owed a payday lender and they were going to have me arrested. It was not until XX/XX/XXXX that I learned Avant Credit was not who said they were. I did n't owe anybody so I chalked it up as a scam call. In XXXX, I was notified by the IRS that someone had filed a fraudulent tax return in my name. During the investigation of identify theft, it was learned that Avant Credit, XXXX, and XXXX were possibly linked to a nationwide scam group and identity theft. I was advised to contact the Commonwealth 's Bureau of Financial Institutions to learn if either of these companies were licensed and/or registered to do business in the Commonwealth. In XX/XX/XXXX, I was notified that none of these companies were legal in Virginia and their practices were fraudulent and violated federal and state laws, including usury laws. In addition, the Office of the Attorney General and the SCC advised that online lenders are illegal in the Commonwealth of Virginia and that they are well aware that they are illegal. Please be advised that you will not receive cooperation. Avant Credit continues to deny that their actions were fraudulent and appear to be legitimate in their responses. However, please be advised that any responses from Avant Credit are false. They are not licensed, registered, or authorized to conduct consumer financing in the Commonwealth of Virginia ( COV ). Avant Credit 's fraudulent loan was allegedly for an installment loan. The Commonwealth of Virginia 's usury rate is capped at XXXX %, unless the company is a licensed consumer finance company by the COV 's State Corporation Commission. Avant Credit 's loan was fraudulent and solicited in the Commonwealth of Virginia as a licensed entity. The loan is null and void under the COV Code of Virginia. Under Virginia law, no loan is valid if more than 12 % APR interest is charged unless it meets a specific statutory exception to the XXXX % cap. XXXX Virginia consumer finance companies may charge more than 12 %, up to XXXX %, but no Internet lenders are licensed as a consumer finance company. Internet installment loans do not meet any of the exceptions under Virginia statues so they are null and void. If a lender who is not exempt from the Consumer Finance Act and has not obtained a consumer finance license from Virginia makes a loan for more than XXXX % APR, the loan is null and void and the lender is not entitled to collect any principal, interest or charge whatsoever on the loan. Virginia Code 6.2-312. All of the information provided in this dispute can be verified with the Commonwealth of Virginia 's Office of Attorney General and the State Corporation Commission. Avant Credit was notified immediately ( see attachment ) to cease and desist all transactions against my checking account and remove any reporting to any and all credit bureaus. They have continued to harass through me multiple calls to my place of employment, which is documented in multiple ways as my employment is a state government agency, public safety.