Consumer complaint received 2023-12-28 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Didn't receive advertised or promotional terms
Company: Affirm Holdings, Inc
State: AZ

Complaint narrative:
XX/XX/2023 Dear Sir or Madam, I accepted a loan through Affirm, with XXXX XXXX  a XXXX  XXXX XXXX XXXX XXXX  according to the Promissory Note executed electronically on XX/XX/2023 and funded XX/XX/2023. 

The amount of the loan was for {$2400.00} for the purchase of merchandise from XXXX ( XXXX XXXX ). Per the loan agreement, it clearly states as follows, You will pay interest at a yearly rate of 34.44 % APR. This is a simple interest loan, which means that interest accrues daily on the unpaid principal balance, up to the amount of the Finance Charge, until you pay the loan in full. The terms of the loan are clear that an APR of 34.44 % interest is to be paid on the unpaid principal balance and assessed on a simple interest calculation. 

As of XX/XX/2023 ( XXXX  days from funding ) the following payments have been made utilizing 33.44 % simple interest : XX/XX/2023 : {$130.00} Payment ( Interest paid- {$33.00}, Principal paid- {$100.00} ), Interest Per Diem Rate : {$2.00} x XXXX  days ending XX/XX/2023 o New principal balance : {$2200.00} XXXX  New per diem rate as of XX/XX/2023 : {$2.00} XX/XX/2023 : {$1000.00} Payment ( Interest paid- {$6.00}, Principal paid - {$990.00} ) Interest per diem rate : {$2.00} x XXXX  days ending XX/XX/2023 XXXX  New principal balance : {$1300.00} XXXX  New per diem rate as of XX/XX/2023 : {$1.00} Total Paid To-date : {$1100.00} ( Interest : {$40.00}, Principal : {$1000.00} ) The total outstanding principal balance owing as of todays date is {$1300.00}, accumulating interest at a rate of 34.44 % ( {$1.00} per diem ). 

XXXX XXXX  through their partnership with Affirm is stating that the total balance owing as of XX/XX/2023 is {$1600.00} for a payoff ( see attached ). This payoff indicates an APR of 283.08 % is being assessed contrary to the Promissory Note and in complete breach of the loan agreement ( see Promissory Note ). This means that the monthly interest rate being assessed is 23.59 %. The corrected payoff as of todays date should be {$1300.00}, not {$1600.00}. 

On XX/XX/2023, I contacted XXXX at Affirm to discuss the interest payoff calculation on this loan and was transferred to her supervisor XXXX XXXX for further assistance in explaining the interest balance. XXXX was unable to provide an explanation of why the interest rate was beyond the contractual obligation and would not provide me with her managers information to discuss this further. 

Ive worked in the banking industry over the past XXXX  years in various capacities and as a XXXX XXXX  XXXX in XXXX XXXX XXXXXXXX for more than XXXX  years. This is a complete violation of Truth in Lending and requires further investigation into the business practices of XXXX XXXX  to include its affiliates. 

The amount of the payoff needs to be correctly assessed and adjusted according to the Promissory Note. I urge the Consumer Financial Protection Bureau to investigate this matter and to take action, as other customers may have been taken advantage based on the legality of their contracts. I will be making this information public through all accessible media channels. 

I hope this situation comes to a meaningful resolution. Please feel free to contact me with any questions. 

Cordially, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation