Consumer complaint received 2026-06-10 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Title loan
Issue: Charged fees or interest you didn't expect — 
Company: Allied Financial Services Inc
State: NC

Complaint narrative:
I sent the following notice to the lender on XX/XX/XXXX after recently learning about the violation of the MLA. I just sent a 2nd Notice to them today as I have not yet received a response. The account is not listed on my credit report to file a dispute with the credit reporting agencies. Military Lending Act Violation Notice Date : XX/XX/XXXX From : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : Legal Compliance Department / Branch Manager XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX Re : Notice of Military Lending Act ( MLA ) Violation and Dispute of Debt Validity Account Number : XXXX Collateral : XXXX XXXX XXXX To Whom It May Concern, I am writing to formally notify you that the personal installment loan account referenced above was executed in direct violation of the Military Lending Act ( MLA ), 10 U.S.C. 987, and its implementing regulations, 32 CFR Part 232. At the time this consumer credit contract was executed, I wasand currently remaina " covered borrower '' under the MLA as the dependent spouse of an XXXX XXXX XXXX member serving on covered XXXX XXXX XXXX exceeding XXXX days. Under federal law, your institution was required to verify my covered borrower status through the XXXX XXXX XXXX MLA Database prior to extending credit. Your institution committed a severe violation of federal law by requiring a motor vehicle title as collateral for a personal loan extended to a covered borrower. Under 32 CFR 232.6 ( h ) ( 2 ), independent finance companies and non-bank creditors are strictly prohibited from taking a motor vehicle title as security for a consumer credit transaction involving an XXXX XXXX XXXX or their dependent spouse. Pursuant to 10 U.S.C. 987 ( f ) ( 3 ) and 32 CFR 232.7, any credit agreement, promissory note, or security agreement that violates the Military Lending Act is void from its inception. Consequently, the security interest you have asserted against my vehicle is legally invalid, and you have no legal authority to repossess the vehicle or collect further interest, fees, or principal under this void contract. I demand that your institution immediately take the following actions : Cease and desist all attempts to collect payments, interest, or fees on this void account. Immediately release the lien on my vehicle and return the physical title to me. Terminate any current efforts to modify or refinance this legally void debt. Update my credit profile with all major credit bureaus to reflect a zero balance with no negative remarks. Please be advised that I am submitting a formal consumer complaint regarding this predatory lending practice to the Consumer Financial Protection Bureau ( CFPB ) and am forwarding these loan documents to my local Military Legal Assistance Office for comprehensive statutory review. Lenders found knowingly violating the MLA face strict civil liabilities, including actual damages, punitive damages, and mandatory attorney fees. Provide a written response outlining your compliance with these demands within ten ( 10 ) business days of receiving this letter. Sincerely, XXXX XXXX

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