Consumer complaint received 2024-10-29 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Title loan
Issue: Problem with the payoff process at the end of the loan — 
Company: CCF Intermediate Holdings LLC
State: FL

Complaint narrative:
I am writing to file a formal complaint against InstaLoan, located on XXXX XXXX in XXXX, Florida, for deceptive and predatory lending practices that I experienced firsthand between XXXX and XX/XX/year>. I believe their practices may violate consumer protection principles, particularly in how they structure high-cost loans that exploit borrowers through unnecessary fees and misleading tactics designed to keep customers indebted. 

In XX/XX/year>, I took out a title loan with InstaLoan, and though I worked diligently to pay off the loan in full by XX/XX/XXXX, I encountered numerous issues along the way. One of the most concerning practices was their use of funds available calls following each payment. Each month, InstaLoan contacted me to encourage re-borrowing of paid-down amounts, creating pressure to renew the loan before making significant progress on the principal. This high-pressure tactic traps borrowers in a cycle of debt, making repayment more difficult. 

In addition, InstaLoan aggressively pushed their own insurance policy, despite my opting for my own coverage. Staff became visibly annoyed when I declined their costly insurance, which added over {$200.00} per month without benefiting me as the borrower. Reports from consumer advocates, including investigations from XXXX, indicate that companies like InstaLoan use these insurance fees to inflate effective interest rates beyond Floridas legal cap. This practice appears deceptive, especially as these fees benefit only the lender and create a hidden channel for excessive charges. 

When I finally paid off the loan in XXXX, InstaLoan failed to follow through on several critical commitments. Although they promised to contact my insurance company to release the lien on my title the same day, they did not, forcing me to resolve it myself after several days. Additionally, I had requested a paper copy of my title, which was supposed to be available promptly ; however, they did not notify me when it arrived. Had I not called to check on it, the title would have remained indefinitely at their office. 

This experience has been deeply concerning and aligns with what consumer advocacy groups label as legalized loan sharking. Many title loan companies in Florida rely on borrowers ' inability to escape debt by adding hidden fees and offering unnecessary insurance policies. My situation underscores these concerns, and I believe InstaLoans practices deserve regulatory attention to prevent other vulnerable borrowers from being similarly exploited. 

I respectfully request that the CFPB investigate InstaLoan for these practices. I believe their business model intentionally traps borrowers through excessive fees and aggressive re-borrowing offers, violating the spirit of consumer protection laws and exploiting individuals who may lack the resources to challenge these practices. 

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation