Consumer complaint received 2018-07-28
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: RFNA, LP (KY)

To whom this may concern  : XX/XX/XXXX I am requesting that XXXX XXXX located at XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX, KY XXXX, phone number ( XXXX ) XXXX be investigated in regards to them being out of compliance with Kentuckys Legislation pertaining to the legal rate of interest that they are charging their consumers. I believe they are in violation. I have also not been able to locate a license to operate this loan business. 
I took out a loan with XXXX XXXX in XX/XX/XXXX for just over {$6000.00}, for a 24 month term, with 24.04 % interest. This loan supposedly had no prepayment penalty. The representative never disclosed to me that the Rule of 78 would apply if the loan was paid in full earlier than the term length. He also pushed unnecessary insurance coverage ( every single policy that they had available ) onto me, telling me that for my protection and the protection of my family it was a necessity. So this brings us to today. 
My wife, XXXX XXXX, and I have been calling, as well as stopping in for the past 4 months, questioning why the balance has not been paid in full. When my wife, spoke to a gentleman yesterday, XX/XX/XXXX, about a ten day pay off, he mentioned that there is insurance with the loan. When she questioned this, he failed to mention ( again ) that the insurance is NOT mandatory. She was questioning the balance owed ( again ) and how much we have already paid into this loan. He said we have made a total of {$7500.00} in payments for this loan that we just got out in XX/XX/XXXX. He explained that they charge their interest rate up front on their loans. Their TILA is misleading and unfair. Nowhere does it say in this TILA that I would have to pay advanced interest if I paid it off earlier than the terms. As a matter of fact, he specifically stated there is no repayment penalty. We decided to go in on XX/XX/XXXX after work to ask additional questions. They are listed below as well as his responses to the questions. 
1. I want a complete refund of the insurance premiums which were unnecessary and unwanted. 
When XXXX asked for this, he basically said they would cut us a check for approximately {$700.00}, but that we would have to pay them back an additional {$700.00} ( Rule of 78 )  because they would be cutting us another check. When she asked him how this was legal since the {$700.00} refund was already included in the loan we are paying back, all he could say was because XXXX XXXX would be giving you additional money. She asked for further clarification and he could not provide this. She also informed him that we had a homeowners insurance policy that would cover the collateral if anything were to happen. He didnt seem to even bat an eye. 
2. Are you aware that Kentucky Legislation regulates the maximum amount of interest rates and the amount of advanced interest rate that can be charged to a consumer? 
He acknowledged that he was aware of the laws and said that he promises that he is in compliance with all of the applicable laws. 
3. I want a complete breakdown of all of the payments that we have made and how it went towards the principle balance of the loan. 
Still did not provide this to me even though I asked on several occasions. He kept giving me a sheet that had the Rule of 78 listed and the months that were paid and the refund that they would be willing to settle with listed on it. XXXX was confused as to why he kept saying that since we have made additional payments that we had to use the 16th month line for the refund amount, even though we are 10 months into the loan term. 
4. I want all of the paperwork that was signed for this loan and the entire file for the loan. 
He gave me my copy of my contract but wouldnt release the entire file I requested. He called his supervisor and asked what he was allowed to release to us. This shouldnt even be a question as the entire file IS our business. 
5. What is the maximum maturity of the loan? 
He couldnt answer this for us. He kept saying well, people can take out a longer term if they choose to, and etcetera. 
6. Where does the calculation of the interest rate come from? 
He stated that the computer calculates it. XXXX asked again, what it was based on, and he again informed us that the computer calculates this. He then kept going on about how we signed the contract and we could have took time to read it. I told him that it was nearly impossible to do because when XXXX was signing the paperwork, the guy was basically pushing it on him with a brief overview on each document he was signing. He also mentioned that according to the Rule of 78, with loans over {$3000.00}, they are authorized to use this computation. She asked what Kentucky Legislation this was based upon and he couldnt answer her. This is the second time they did this to me but the first time I was unaware until I got married and my wife looked into my debts. They already got so much money from me the first go round, then they let me take an additional amount out in XX/XX/XXXX when I was finally down to a low balance.