Consumer complaint received 2025-08-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: C2 Financial Corporation
State: TX

Complaint narrative:
1. Product : Mortgage Refinance ( Home Loan ) 2. Company : C2 Financial Corporation 3. Loan Officer : XXXX XXXX ( MLO ) 4.Loan number : XXXX I am submitting this complaint regarding C2 Financial and their former mortgage loan originator ( MLO ), XXXX XXXX XXXX , due to two critical misrepresentations made to me prior to closing on my refinance loan.

Background : In XX/XX/XXXX, I refinanced my home loan through C2 Financial. Before I agreed to proceed, XXXX XXXX made two explicit promisesboth in writing via his official C2 Financial email : 1. That my previous loan with XXXX carried no prepayment penalty. 
2. That I would be entitled to one-time, truly $ XXXX refinance within 36 months, including no appraisal fees, no lender fees, and no closing costs from my first payment of the new loan XXXX XXXX XXXX XXXX 

These XXXX points were absolutely essential to my decision. I believed interest rates would likely decline within the next three years, and the ability to refinance once at no cost would allow me to fully recover the upfront expense of the current refinance. In essence, this created an effective half-price refinance strategy over two transactions, and significantly changed the cost-benefit analysis of accepting the current loan. 

Result : After closing, I was charged a {$6400.00} prepayment penalty by XXXX to what XXXX XXXX stated. In addition, C2 later disclaimed any responsibility for the $ XXXX refinance promise, even though it was made by their employee using an official C2 email. My actual closing costs totaled {$21000.00}, making my out-of-pocket damages over {$27000.00}.

Legal Grounds : Under the Texas Deceptive Trade Practices Act ( DTPA ), knowingly making false or misleading statements in a consumer transaction can entitle the consumer to up to three times actual damages. 

This principle was upheld by the Texas Supreme Court in XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX. XXXX ), where the court found that a misrepresentation about a material loan term even if not made with malice may be actionable under DTPA if it caused the consumer to enter a transaction they otherwise would not have accepted.

My case parallels that ruling : I relied on material representations about loan terms ; Those representations were false ; They were made in the course of official business by a licensed MLO ; And they directly led to measurable economic harm.

Relief Requested I am seeking full relief under DTPA and TILA, including : Reimbursement of actual damages : {$27000.00} Treble damages for knowing misrepresentation : {$83000.00} total claim C2 Financial has acknowledged part of this in writing ( i.e., that the $ XXXX refinance promise was unauthorized and misleading ). However, their current compensation offer is only {$8000.00} far below the actual losses and legal remedies available to me. 

I am prepared to provide the full written documentation, including email evidence of the promises made, screenshots, and detailed financial records. 

Thank you for your attention.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with monetary relief