Consumer complaint received 2018-03-24
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: CNG FINANCIAL CORPORATION (AZ)

On XX/XX/2017 I went into the XXXX, CA location to pay off my payday loan of {$300.00}. The office was very busy, and the customer service representative was a female named XXXX.

Upon printing out the paperwork I asked again about amount and if I could have a lower one and was told they only do {$2500.00} and above ( see enclosed flyer ). When I called to make my first payment I told the representative, XXXX, that this was false advertising because I didnt get to pick my due date or the amount or repayment terms. The loan was placed for 15 days out instead of 30 days out and she replied that they only had to go 15 days. To which I stated that is not what their advertisement says. They say, Pick your due date, pick your amount, pick your loan as stated on the enclosed marketing flyer. Being new to the state due to a recent move, I was unaware of the state law regarding interest rates and loan above {$2500.00}, which this company did not disclose to me. XXXX XXXX XXXX  is aware of their misleading loan practices in an effort to charge interest rates above 100 % which is a violation of the various acts stated in this letter. Had I been made aware of this I would not have chosen to accept the terms or loan itself.

I am reporting this company for false advertising, predatory lending, abusive loan terms and Truth in Lending Act violations.

Business & Professions Code 17500 BPC California Fraud law - 2.2. Abusive loan terms Predatory loans are generally characterized by excessively high interest rates and/or fees. The lender usually also fills these loans with unnecessary terms that do not benefit the borrower. These include ( but are not limited to ) : Unnecessary balloon payments Large prepayment penalties Deceptive promises regarding loan rate Loan approvals that ignore the borrowers ability to repay the loan.

There was no allowance for a lessor amount below {$2500.00} wherein the lender would not be able to charge an interest rate above 36 % as per California State Law. They purposely have loans from {$2500.00} and above to insure they can charge a higher and unreasonable rate.

They falsely advertise that you can Pick your due date, loan amount and term which is incorrect. They only offer amounts above {$2500.00}, they do not let you pick your due date and the term is already set based on the loan amount and interest rate. This is false and predatory lending targeting those who can not necessarily repay the loan.

They state they will report to XXXX  credit agency which seems to be another tactic for enforcing the loan that is set so high it is almost impossible to repay.

The terms of the loan are abusive When asked about prepayment penalty for early pay off, I was told there isnt one, but the paperwork clearly states otherwise You are not allowed to take the paperwork home to read through it or on location because they are busy with other customers I was told by the employee my interest rate would not be above 100 % and it is 140 % because the loan was over {$2500.00} which the lender knew did not fall under the California laws for interest rate requirements.

And finally, they have a mandatory arbitration in their loan document which I rescinded upon reading about this on the internet ( see attached letter to company ). They clearly know that this is something the general public is unaware of regarding their legal rights and is another example of predatory lending and manipulation.

I would like this company investigated for fraud, false advertising, FTC non-compliance, Truth in Lending Act violations, purpose and willful intent to mislead consumers, predatory lending and any other law/act that applies.