Consumer complaint received 2025-07-16 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Payday loan
Issue: Charged fees or interest you didn't expect — 
Company: River City Finance Co., Inc.
State: TX

Complaint narrative:
To Whom It May Concern : I am writing to express my concerns regarding the terms and practices associated with a consumer loan agreement provided by River City Finance in XXXX XXXX, Texas. After reviewing the contract and related disclosures, I believe several aspects of this loan may be unfair, deceptive, or abusive, and may violate consumer protection principles.

1. Excessively High Interest Rate and Fees APR of 111.61 % : This rate is extraordinarily high and, in my opinion, constitutes predatory lending. Such a high rate significantly increases the financial burden on consumers, especially those with limited means.

High Upfront Fees : The contract includes a {$37.00} acquisition charge and an {$83.00} installment account handling charge on a {$300.00} loan. This means that borrowing {$300.00} over seven months will cost a total of {$420.00}, adding over 40 % to the original principal in less than a year.

2. Loan Structure Unfairly Increases Borrower Cost Late Fee Policy : The late charge for missed payments is either {$10.00} or 5 % of the scheduled amount, whichever is greater. For a {$60.00} payment, this equals a {$10.00} fee, which is disproportionately high relative to the payment size.

Refund Policy for Fees : The acquisition charge is non-refundable, and only a partial refund of the handling charge is available upon early repayment. This discourages borrowers from paying off their debt early and can perpetuate the cycle of high-cost borrowing.

3. Contract Language and Disclosure Issues Confusing Security Interest Statement : The contract both states that NONE of the borrowers property is pledged as collateral and refers to a perfected 1st lien position security interest granted to XXXX XXXX XXXX This contradictory language makes it difficult to understand what rights the lender is reserving or if there is hidden collateral involved. 

Multiple Company Names : The disclosures reference both River City Finance and XXXX XXXX, leading to confusion about which company is actually responsible for the loan and consumer communications.

4. Restrictive Legal and Communication Terms Binding Arbitration Clause : The contract requires all disputes to go through binding arbitration, exce
pt those eligible for small claims court, and prohibits participation in class actions. This severely limits a borrowers access to the courts and collective action.

Broad Text Message and Electronic Consent : The borrower is required to consent to ongoing text messagingincluding marketingby auto-dialer. Withdrawing consent to electronic communications requires either visiting the office in person or mailing a signed written request, which is burdensome for many consumers.

5. Impact on Borrower and Potential Harm Complex and Technical Language : The contract uses legal and technical jargon that may be difficult for the average consumer to fully understand, increasing the risk of uninformed consent.

Potential Credit Consequences : The contract stipulates that late or missed payments will be reported to credit bureaus, which, in light of these high-cost and aggressive terms, puts the borrowers financial future at further risk.

Requested Action I urge the CFPB to review the attached loan contract and disclosures for compliance with federal and state consumer protection laws. I am particularly concerned that the combination of extremely high interest and fees, confusing and restrictive contract terms, and aggressive communication policies constitutes an unfair and abusive practice that should be investigated.

Thank you for your attention to this matter.

Company response to consumer: Untimely response