Consumer complaint received 2026-04-03 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: POWERPAY, LLC
State: GA

Complaint narrative:
I am a XXXX U.S. military veteran and single mother of XXXX. On XX/XX/year>, I entered into a home improvement financing agreement through PowerPay LLC and XXXX Bank ( Loan # XXXX XXXX ) to fund a roof replacement by XXXX XXXX ( Georgia License # XXXX ) at my property. I am filing this complaint for the following reasons : 1. FUNDS DISBURSED OR AT RISK OF DISBURSEMENT WITHOUT PROJECT COMPLETION AUTHORIZATION The Borrower Payment Authorization ( Exhibit A of the Loan and Security Agreement ) contains two parts. Part I was signed by me on XX/XX/year> as an initial authorization. Part II the Project Completion Authorization has NOT been signed by me. The agreement explicitly states that funds are to be disbursed to the Authorized Service Provider upon completion of the project, as evidenced by the borrower 's signature on Part II. The roofing project was NOT completed satisfactorily. Independent inspections on XX/XX/year> and XX/XX/year> identified multiple critical deficiencies including improper drip edge installation, raised starter shingles creating wind-uplift risk, improperly cut gable rake drip edges that will cause leaks, incorrect step flashing with visible open penetrations, and soft spots indicating potential structural damage. A forensic inspection is currently underway. Despite the project being defective and incomplete, I am concerned that PowerPay may attempt to disburse funds to XXXX XXXX based on Part I alone, or that XXXX XXXX may fraudulently represent that the project has been completed. I have formally notified both PowerPay and XXXX Bank in writing not to disburse funds without my Part II signature. 2. POTENTIAL MILITARY LENDING ACT VIOLATION I am a XXXX U.S. military veteran. The Loan and Security Agreement ( Section 14 ) contains explicit Military Lending Act ( MLA ) language acknowledging that the arbitration provision " does not apply '' to covered borrowers. Under 32 C.F.R. 232.8 ( c ), mandatory arbitration clauses in consumer credit contracts are void and unenforceable as applied to covered borrowers under the MLA. I am concerned that PowerPay and/or XXXX Bank may attempt to compel arbitration of any dispute related to this loan, in potential violation of the MLA. I am requesting that the CFPB review whether the lender properly verified my status as a covered borrower under the XXXX XXXX XXXX XXXX ( XXXX ) database as required by 32 C.F.R. 232.5 ( b ) prior to executing this agreement, and whether the arbitration clause as written and applied complies with MLA requirements. 3. DECEPTIVE PRACTICES BY AUTHORIZED SERVICE PROVIDER PowerPay and XXXX Bank have a financial relationship with XXXX XXXX as an Authorized Service Provider ( # XXXX ). XXXX XXXX : Misrepresented the quality of materials that would be installed. Installed a defective roof under conditions I explicitly objected to ( heavy rain ). Failed to provide a certificate of insurance. Performed partial repairs while refusing to address critical deficiencies. Has not fulfilled the terms of the contract. As the financing entity that entered into a program sponsor relationship with XXXX XXXX, PowerPay has responsibility for ensuring that its Authorized Service Providers fulfill their contractual obligations before funds are released. Disbursing funds to a contractor that has not completed work satisfactorily and whose work has been found critically deficient by independent inspectors would constitute an unfair, deceptive, or abusive act or practice ( UDAAP ) under the Consumer Financial Protection Act, 12 U.S.C. 5531. 4. RISK OF ADVERSE CREDIT REPORTING I am concerned that if PowerPay or XXXX Bank disburses funds to XXXX XXXX and I refuse to begin payments on a loan for work that was never satisfactorily completed, this dispute will result in adverse credit reporting against me. As a XXXX veteran who has not received the services financed, any adverse credit reporting during the pendency of this active dispute would be unfair and potentially unlawful. DESIRED RESOLUTION : 1. PowerPay and XXXX Bank must NOT disburse any funds to XXXX XXXX under Loan # XXXX without my signed Part II Project Completion Authorization. 2. The loan account must be placed in formal dispute status with no adverse credit reporting during the dispute period. 3. The CFPB should review whether PowerPay properly complied with MLA requirements, including XXXX database verification, prior to executing this loan agreement. 4. XXXX XXXX should be required to arrange a full roof replacement by a reputable, licensed, and insured contractor at no cost to me, after which I will sign the Project Completion Authorization and honor the loan in full. 5. The arbitration clause in Section 15 of the Loan and Security Agreement should be confirmed as void and unenforceable as to me as a covered borrower under the MLA. SUPPORTING DOCUMENTATION AVAILABLE : Signed Loan and Security Agreement ( PowerPayXXXX Bank , dated XX/XX/year> ) Borrower Payment Authorization ( Part II unsigned ) XXXX XXXX XXXX contract ( Contract # XXXX ) Independent inspection report ( XX/XX/year> ) Second independent inspection findings ( XX/XX/year> ) Forensic inspection ordered ( findings forthcoming ) XXXX complaint filed XX/XX/year> Photographic evidence : XXXX : XXXX Formal demand letters sent to PowerPay, XXXX Bank, and XXXX XXXX XXXX XX/XX/year> ) XXXX outreach to XXXX XXXX XXXX ( XX/XX/year> ) I am a XXXX veteran and single mother who trusted XXXX XXXX and PowerPay with a nearly {$35000.00} investment in my home. I am not attempting to avoid a legitimate financial obligation. I am asking that the CFPB ensure that I am not forced to pay for work that was never satisfactorily completed, and that my rights as a covered borrower under the Military Lending Act are protected.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation