Consumer complaint received 2024-01-31
Product: Payday loan, title loan, personal loan, or advance loan — Other advances of future income
Issue: Confusing or missing disclosures — 
Company: Broadway Advance LLC (GA)

XXXX XXXX XXXX and Broadway Advance entered into a contract XX/XX/XXXX for a XXXX loan. The loan was for {$10000.00} minus fees ( {$400.00} origination fee and a {$30.00} wire fee ) plus {$4.00}, XXXX for the cost of the loan for a total of {$14000.00}. XXXX XXXX XXXX unfortunately on XX/XX/XXXX was unable to make payment due to financial reasons. On XX/XX/XXXX I received a email from XXXX XXXX XXXX XXXXXXXX then on XX/XX/XXXX I received a phone call from a number that turns out to be a cell phone. I can disclose the date, time, and phone number if needed. During this call I spoke with XXXX XXXX XXXX XXXXXXXX told her I was unsure yet when I could get back on payments and was releasing employees. Somewhere between XXXX XXXX and XX/XX/XXXX I was told I could get a week without payments and we would continue talking. On XX/XX/XXXX I was contacted by XXXX XXXX of XXXX XXXX who was demeaning and told me to lawyer up. They then drafted a lawsuit dated XX/XX/XXXX but was filed in court on XX/XX/XXXX. See CFPB complaint for XXXX XXXX XXXX. Also on XX/XX/XXXX XXXX XXXX after our phone conversation I asked him to repeat what he said and he responded what do you mean, repeat myself on what? then proceeded to give me the breakdown of the following. ( in attachment as well ) [ Principal : {$7300.00} Costs/Fees : {$5000.00} ] - [ Payments : {$0.00} ] = Balance : {$12000.00} If you would like to offer a lump sum you can offer something close to the XXXX. 

If we have to go out on a Payment plan 25 % would have to be added to make my client whole.

Just to get an idea of what my client is expecting about {$380.00} weekly towards {$15000.00} Keep in mind this balance does not yet include Contingency fees.

In our court case their lawyer is also asking for court fees, 9 % interest and lawyer costs. ( in attachment ) Both interest nor Contingency fees are in the contract. The contract literally says no interest in the contract as stated in section 5 in the contract. 

There are several issues with the contract also found in a similar case in the United States XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. XXXX is only citing certain parts of this case that are similar and stated below in regards the contract signed with Broadway Advance and XXXX XXXX XXXX not the entire case. This case was brought to judge in XX/XX/XXXX in favor of the FTC. In the first amended complaint filed XX/XX/XXXX section XXXX & XXXX where consumers are agreeing to a XXXX  or confession of judgment. This is stated in XXXX which is the UCC filing which is contradicting to section 5 of the agreement which states that the buyer they assume all risk of the agreement and acknowledges that slow payments may happen time to time.

So in summary of the above the total would be {$19000.00} of a {$7300.00} balance. Plus court fees.

Furthermore on Broadway Advances website it states future receivables not selling of business. As stated in case XXXX this violates the FTC Act Section 5 ( a ) XXXX has made several attempts to restart daily payments on the original {$7300.00} balance but has been denied multiple times. 

Broadway Advance also has placed liens on my business further handcuffing our income to pay bills and another XXXX loan company. They have also contacted our customers directly directing them to make payments to XXXX XXXX. 


Please reference CFPB complaint for XXXX XXXX XXXX