Consumer complaint received 2024-01-25 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: TRUIST FINANCIAL CORPORATION
State: OH

Complaint narrative:
I attempted to contact the firm via their form on XX/XX/XXXX, I called and spoke to someone on XX/XX/XXXX who gave me information and then escalated to her supervisor XXXX, who provided additional information, which contradicted the first person. I had been told by my contractor verbally and in writing that the loan would be 0 % interest for 12 months. I asked multiple times via email for clarification on the language in the contract, which was validated as correct. I would've paid in full the cash amount, but it made more financial sense to take the loan for 12 months, and then pay it off when interest began to accrue afterwards. When I called to get my payoff amount, it was $ XXXX higher than I anticipated based on the starting balance, and the 14 payments I had made. When I spoke with XXXX he explained that because I didn't pay off the loan DURING the promotional period, the promotion was retroactively rescinded and the full balance had accumulated 17.99 % interest the entire time. So it wasn't a 0 % interest, it was a deferral, that was then retroactively applied in full after the 12 month promotional period. This is highly confusing, different than what was communicated, and misleading. I requested they immediately cease pulling via ACH from my account ( I paid the monthly payment automatically in full on time each month ). The balance at the end of the 12 month period was {$9600.00} ( per XXXX ), and then because I didn't pay that balance in full prior to that day, even though all payments were made on time and continued to be paid, my balance jumped $ XXXX. The company only makes money if consumers DON'T adhere to the promotional period- so the company, Service Finance, is incentivized to have consumers miss out on the promotional period in order to recoup any gains from lending. This is especially harmful to lower income individuals who rely on these programs to help repair their homes. Loan was created in XX/XX/XXXX for XXXX Monthly payments were made via ACH ( auto, on time ) for {XXXX Promotion as described verbally/writing by contractor was 0 % interest for 12 months, and 18 % afterwards I paid all monthly amounts on time, and called XX/XX/XXXX to payoff the balance I was told the balance was still {XXXX which surprised me because it was ~ $ XXXX more than I expected. Further investigation uncovered it was a deferred interest loan that retroactively applied in full if the entire loan wasn't paid within 12 months, which negates the value of a promotional period for all individuals who can't pay the loan in full in a short window. This also contradicts my understanding of the loan. A promotional period implies a value to the consumer - not a term that triggers a retroactive fee application- which is confusing, misleading, and harmful to consumers who are trying to navigate complex financial documents and understand financing terms.

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