Consumer complaint received 2024-08-09 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: GFS II, LLC
State: GA

Complaint narrative:
I called the company Gateway financial solutions as a response to recent complaint asking for a sum of payments in full detail so that i could look over all paperwork and payments sent to company. I was told that due to recent seis and desist that i could no longer get information about my account unless i verbally committed to lifting the " seis '' on my account. I for one did not authorize the seis and desist so i didn't not choose to lift it basically not knowing whether or not if it would violate my consumer rights. I was not given any information and was asked to call back at a later time in compliance to receive my account info. I also gave a new address for them to send documents as far as the account. I want to know what the money I paid in has gone towards. I see on my contract that I was charged at a 22 % APR. This is illegal in the state of Georgia. 

XXXX XXXX XXXX XXXX XXXX XXXX. Criminal penalty for excessive interest ( a ) Any person, company, or corporation who shall reserve, charge, or take for any loan or advance of money, or forbearance to enforce the collection of any sum of money, any rate of interest greater than XXXX percent per month, either directly or indirectly, by way of commission for advances, discount, exchange, or the purchase of salary or wages ; by notarial or other fees ; or by any contract, contrivance, or device whatsoever shall be guilty of a misdemeanor ; provided, however, that regularly licensed pawnbrokers, as defined in Code Section 44-12-130, are limited in the amount of interest they may charge only by the limitations set forth in Code Section 44-12-131.

44-12-131. Duration of Pawn Transactions ; Lease-Back of Motor Vehicles Prohibited ; Taking Possession of Motor Vehicles ; Restrictions on Interest, Fees, or Charges ; Action to Recover Excessive or Undisclosed Charges ; Consequences of Excessive Charges As used in this Code section, the term " interest '' means a charge for the use of money computed over the term of the contract at the rate stated in the contract or precomputed at a stated rate on the scheduled principal balance or computed in any other way or any other form. Principal includes such charges to which the parties may agree under paragraph ( 1 ) of this subsection. Amounts paid or contracted to be paid as either an origination fee or discount points, or both, on any loan secured by an interest in real estate shall not be considered interest and shall not be taken into consideration in the calculation of interest and shall not be subject to rebate as provided in paragraph ( 1 ) of subsection ( b ) of this Code section.

( b ) ( 1 ) Upon acceleration of the maturity of any loan, advance of money, or forbearance to enforce the collection of any sum of money upon which interest has been precomputed, unearned interest shall be rebated to the debtor in such amount as would result in the rate of interest earned being no greater than the rate of interest established by the original contract. In the case of a loan in which the principal and the interest for the entire term of the loan are included in the face amount of the loan and the loan is to be paid back in weekly, monthly, quarterly, semiannual, or yearly installments, with the interest and principal portions of each installment determined under the pro rata method, any such rebate shall be determined on the pro rata method.

Company response to consumer: Closed with explanation