Consumer complaint received 2022-02-17 00:00:00
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: Harpeth Financial Services, LLC
State: TN

Complaint narrative:
I opened a flex loan through Advance Financial 24/7 in XX/XX/XXXX. I made automatic bi-weekly payments from XX/XX/XXXX through XX/XX/XXXX. I called Advance Financial because I didn't understand why the statement fees were so high. I also revoked the automatic payment consent in XX/XX/XXXX due to financial hardship. I was being charged an astronomical amount in " customary fees '' which was in addition to the interest fees I was charged. I was unaware of those fees. I knew about the interest rate, but not the customary fees. I spoke to a customer service representative who explained how the customary fees and interest work. She said that since I was experiencing a hardship that I would not be charged any further interest and that most of the customary fees would be credited back to me because I believed I was misled. 

I borrowed a total of {$4700.00}. I paid a total of {$4700.00} back to them. I was charged {$8700.00} in customary fees and {$810.00} in interest. All of that added together equals a total amount owed of {$14000.00} in less than 8 months ' time. After subtracting my share of payments, it equals {$9500.00}. My statement shows that $ XXXX was written off ( $ XXXX for the principal, $ XXXX for the customary fees, and $ XXXX for interest ) and then there was an adjustment on the same day ( XX/XX/XXXX ) for a total of $ XXXX ( $ -0 for the principal, $ XXXX for the customary fees, and $ XXXX for interest ). This would mean that I still have a balance of {$7700.00} after my payments and their adjustments. Since I was told most of the customary fees would be credited back, I was under the impression that I no longer owed them anything. I did not receive any letters, statements, or phone calls stating that I still had a balance. 

To my surprise, and nearly 3 years later, I was served court papers stating that I owe a balance of {$5700.00} plus {$1800.00} in attorney fees. They are seeking a judgment in the amount of {$7800.00}. The Plaintiff 's name on the court papers is listed as Harpeth Financial Services , LLC d/b/a Advance FinanciaXXXX in c/o XXXX XXXX XXXX XXXX. I made an appearance in court on XX/XX/XXXX, which was then rescheduled for XX/XX/XXXX to allow time for Advance Financial to mail me a ledger and for me to get ahold of someone at The XXXX XXXX to see about making a settlement offer. The person who appeared on the Plaintiff 's behalf was not authorized to grant a settlement or do any type of negotiating, so he advised me to contact XXXX XXXX XXXX again to discuss my options. I contacted XXXX XXXX XXXX, and they told me the only way I could submit a settlement offer was to first agree to a default judgment. Once I agreed to that I would need to set up a payment arrangement, and then I'd be able to submit a settlement offer. XXXX XXXX XXXX said my offer would then be sent over to Advance Financial for their review. I was not willing to agree to a default judgment, so I appeared in court on XX/XX/XXXX, and spoke to the plaintiff 's representative. Again, there was nothing he could do, so I requested a trial hearing which is scheduled for the first week of XX/XX/XXXX. I would like to get to the bottom of this, but when I call Advance Financial, they tell me to call XXXX XXXX XXXX. When I call XXXX  XXXX XXXX to speak to the attorney, they say he isn't available and that all I can do is agree to a default judgment in order to submit a settlement offer. 

I just don't understand how it is even legal to charge these customary fees in addition to the high interest rates. I'm also very upset that they never contacted me regarding a past due balance until I received court papers nearly 3 years later. I wonder how many other people fall victim to this. They also said that I electronically agreed to those fees when I accepted the loan, but apparently, I must have overlooked that information. Either that, or it was never presented to me in the first place. I reviewed the documents I supposedly agreed to, but I do not recall seeing that specific form. In fact, I believe their software glitched while I was trying to accept the loan, so I had to contact Advance Financial for support. I will have to go through my phone records to see the exact time I contacted them. 

Since I was never informed of the debt, I firmly believe it is an unfair debt collection practice. Harpeth Financial Services , LLC never contacted me ( I never even heard of them ), Advance Financial never contacted me, and XXXX XXXX XXXX never contacted me until I received the court papers a few months ago. This is not right. The balance isn't adding up based on the statement they provided me last month, and the attorney fees are outrageous.

Company response to consumer: Closed with explanation