Consumer complaint received 2025-04-02 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: SIMMONS FIRST NATIONAL CORPORATION
State: ID

Complaint narrative:
I am writing to formally file a complaint regarding deceptive and predatory lending practices associated with my loan for equipment purchased through XXXX XXXX. I believe I was misled throughout the financing process, and I am seeking immediate resolution regarding the misrepresentation of loan terms, the unauthorized use of a business name, and other unethical lending practices. 

When I purchased the equipment, XXXX XXXX connected me with XXXX XXXX to finalize the paperwork and discuss financing details. All paperwork and approvals I received from XXXX XXXX prominently displayed the name Simmons Bank, leading me to believe he was an in-house representative of the bank. At no point was I informed that he was actually acting as a broker, and there was no mention of broker involvement, interest rates, or fees in the documents provided to me. This lack of disclosure constitutes predatory lending by withholding critical financial information necessary for an informed decision. 

Additionally, I obtained the loan through my active business, XXXX XXXX XXXX, as indicated in my purchase agreement with XXXX XXXX. However, I was pressured into signing loan documents under a false business name, a fraudulent business practice that any reputable financial institution would recognize as improper. I made it clear to both XXXX XXXX and XXXX XXXX that I would only proceed with the loan agreement if I had a 100 % guarantee that I could transfer the agreement to my active business name. I was assured that this transfer would be possible, yet no such action was ever taken, putting me in a precarious legal and financial position. 

Furthermore, I was initially promised an interest rate of 7.41 %, as documented in an email from the lender. However, upon reviewing the amortization schedule, I discovered that the actual interest rate was 16.421 % a significant and deceptive discrepancy. This constitutes fraudulent misrepresentation, as I was deliberately misled about my financial obligations. Additionally, when I requested documentation detailing my interest payments over a full year, the lender refused to provide the information. When they finally did, they stated that the amortization schedule was " incorrect data '' used solely for IRS purposesa statement that, if true, suggests they are submitting false information to the IRS, which is illegal. 

Regarding the proposed settlement agreement, I do not believe I should be held responsible for any late fees or forced insurance charges, as these issues arose due to the lenders failure to uphold its fiduciary responsibilities. I have already made 22 payments toward the loan, in addition to a {$5000.00} down payment and a {$100.00} loan fee, totaling {$42000.00}. Given the lenders misrepresentation of interest rates, failure to disclose broker involvement, and fraudulent business name practices, I do not believe I should be required to make any additional payments. Had I been properly informed of the true interest rate from the outset, my payment obligations would have been significantly lower.

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