Consumer complaint received 2025-11-24 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with the payoff process at the end of the loan — 
Company: Affirm Holdings, Inc
State: CO

Complaint narrative:
Hello, I financed legal services from XXXXXXXX XXXX XXXXXXXX ( merchant ) through Affirm ( lender ) for {$8600.00}. I later discovered that the merchant did not provide the services described in the signed agreement. I disputed the transaction with Affirm on XX/XX/XXXX, and Affirm opened an investigation ( Case # XXXX ). 

Days later, I received a check from the merchant in the mail for {$8600.00}, which was dated XX/XX/XXXX. There was no notice, communication, or anything else provided with the check, aside from the memo " retainer refund. '' I deposited the check on XX/XX/XXXX, and on XX/XX/XXXX, the merchant cancelled it, removing the funds from my bank account and leaving me with an additional returned check fee. The merchant did this without notice. I have not had any communication with the merchant since XX/XX/XXXX. 

On XX/XX/XXXX, I messaged the merchant directly to request an explanation. The following day, the merchants Director of Operations emailed me directly and attempted to collect a larger amount than what I financed. He stated I now owed {$8700.00}, claimed I had charged back the loan, and demanded direct payment outside of Affirm while Affirms investigation was still open. My Affirm loan was not cancelled, and consumers can not initiate chargebacks on Affirm loans. This communication appears to misrepresent the status of the loan and attempts to collect a disputed amount before the lender completes its investigation. 

The merchants claimed balance of {$8700.00} does not match the amount financed through Affirm ( {$8600.00} ) nor the amount of the refund check issued to me ( {$8600.00} ). These XXXX numbers are similar but inconsistent, and I have had no communication from the merchant for several months prior to receiving them. This raises concerns about the accuracy of the merchants accounting and recordkeeping. 

I also want to note the timing : The refund check was dated shortly after I disputed the loan with Affirm, and then it was cancelled a few days after I deposited it and shortly before Affirms evidence deadline. ( extended to XX/XX/XXXX ) I can not speak to the merchants intent, but the sequence creates concerns about the handling of funds and about whether the timing may be related to the pending XXXX dispute. 

The merchant pressured me to accept XXXX financing by stating they would stop working on my case if I did not pay immediately. I am seeking assistance determining the correct loan status and ensuring that proper dispute protections under Regulation Z are applied. I also want to make sure that the merchant is not permitted to contact me directly or attempt to collect disputed XXXX amounts outside of Affirms platform while the investigation is ongoing. 

What I believe is happening : -The merchant XXXX have misrepresented the status of my XXXX XXXX. 
-The merchant attempted to collect a disputed amount directly from me during Affirms investigation. 
-The merchant demanded more than the financed amount. 
-The merchant issued and then cancelled a trust-account refund check without notice.

Company response to consumer: Closed with explanation