Consumer complaint received 2026-03-31 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Figure Technologies, Inc
State: FL

Complaint narrative:
PRODUCT MISREPRESENTATION AND EXCESSIVE FEES FIGURE LENDING LLC HELOC Originated XX/XX/XXXX I am filing this complaint against Figure Lending LLC ( NMLS # XXXX ) regarding my Home Equity Line of Credit ( HELOC ) for the following violations : 1. PRODUCT MISREPRESENTATION HELOC MARKETED AS REVOLVING CREDIT BUT OPERATES AS CLOSED-END LOAN Figure marketed and sold me a " revolving, open-end line of credit '' ( Section 1.b of HELOC Agreement ) and the product is labeled " Home Equity Line '' on all statements. However, the agreement requires a mandatory 100 % initial draw of the entire credit limit at closing ( Section 1.d : " we will lend you 100 % of your Credit Limit as your Initial Draw '' ). My credit limit is {$160000.00} and available credit is {$0.00} I can not draw additional funds or repay and re-borrow as a true revolving line permits. This is functionally a closed-end home equity loan disguised as an open-end line of credit, which constitutes a violation of the Truth in Lending Act ( TILA/Regulation Z ) and is deceptive under UDAP. 2. EXCESSIVE ORIGINATION FEE Figure charged a 4.99 % origination fee ( {$7900.00} ) on my initial draw of {$150000.00}. Industry standard for HELOCs is 0.5 % to 1.5 %. This fee was added directly to my principal balance ( Section 2.e ), inflating my loan to {$160000.00}. I am therefore paying 10.15 % interest on the fee itself an additional {$800.00} per year, or approximately {$1300.00} over the 20 months since origination. 3. INTEREST RATE FLOOR ELIMINATES VARIABLE-RATE BENEFIT My APR is 10.15 % with a Rate Floor of 10.15 % and a Rate Cap of 15.26 %. The margin is only 1.65 % over the index. The rate floor is set at the exact current rate, meaning my rate can go UP by 5.11 percentage points but can NEVER decrease even as the index rate drops. This eliminates the primary benefit of a variable-rate HELOC and was not adequately disclosed as effectively a fixed-rate product with upside risk only. XXXX. DEVASTATING AMORTIZATION 95.5 % OF PAYMENTS GO TO INTEREST My payment records demonstrate the predatory impact of these terms : TOTAL PAYMENTS ( XX/XX/XXXX XX/XX/XXXX ) : approximately {$27000.00} - Applied to INTEREST : {$25000.00} ( 95.5 % ) - Applied to PRINCIPAL : {$990.00} ( 3.6 % ) In XXXX specifically ( per Annual Account Statement ) : - Total paid : {$17000.00} - Applied to principal : {$630.00} ( 3.6 % ) - Applied to interest : {$15000.00} - 11 out of 14 payments had {$0.00} applied to principal In XXXX ( XXXX and XXXX statements ) : - Total paid : {$3000.00} - Applied to principal : {$0.00} ( 0 % ) - EVERY payment went 100 % to interest After 20 months of payments, my principal balance has decreased from {$160000.00} to {$160000.00} a reduction of only {$990.00} on a loan where I have paid over {$25000.00} in interest. 5. FIGURE 'S OWN ADMISSION OF OVERCHARGES Figure has reported on IRS Form 1098 ( Box 4 ) refunds of overpaid interest totaling {$2600.00} ( {$1300.00} for XXXX and {$1300.00} for XXXX ), confirming that Figure itself acknowledges systematic interest overcharges on my account. XXXX. QUANTIFIED OVERPAYMENT Based on my analysis of all account documents : - Excess interest from inflated rate ( 10.15 % vs fair market 8.0 % ) : ~ {$6000.00} - Interest charged on the origination fee : ~ {$1300.00} - Excess origination fee above industry standard : ~ {$5500.00} - Figure 's admitted overcharges : {$2600.00} - TOTAL QUANTIFIABLE OVERPAYMENT : approximately {$12000.00} XXXX. DATA BREACH ( XX/XX/XXXX ) Figure also experienced a significant data breach in XX/XX/XXXX affecting approximately XXXX accounts ( XXXX XXXX Figure Technology XXXX ), potentially exposing my personal and financial information. DESIRED RESOLUTION : 1. Refund of origination fee ( {$7900.00} ) or, at minimum, the excess above industry standard ( {$5500.00} ), to be applied as a principal reduction 2. Reduction of APR from 10.15 % to 7.5 % 8.5 % ( consistent with current HELOC market rates ) with elimination or reduction of the Rate Floor 3. Retroactive credit for excess interest paid ( ~ {$6000.00} ) applied to principal 4. Reamortization of the loan at the corrected rate to reduce monthly payment 5. Comprehensive identity theft protection and credit monitoring for 5 years due to the XX/XX/XXXX data breach I have also retained counsel and am participating in the XXXX XXXX Figure Lending LLC class action ( Case No. XXXX, XXXX. ) regarding HELOC misrepresentation. I am requesting that Figure resolve this matter promptly and in good faith within the 15-day CFPB response window.

Company response to consumer: Closed with explanation