Consumer complaint received 2019-03-28 00:00:00
Product: Payday loan, title loan, or personal loan — Payday loan
Issue: Charged fees or interest you didn't expect — 
Company: SFS, Inc
State: SC

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX d/b/a XXXX  XXXX XXXX XXXX XXXX, OK XXXX XXXX XXXX XXXX XXXX XXXX d/b/a XXXX XXXX XXXX XXXX XXXX, XXXX To Whom It May Concern : After doing research regarding XXXX XXXX payday loan laws in the State of South Carolina, I have found that your Internet payday loans are actually illegal. I have been in contact with South Carolina State Department of Financial Institutions and they have verified that your company is not licensed in South Carolina, therefore the loan contract I had with XXXX XXXX XXXX XXXX XXXX d/b/a XXXX  according to my state 's laws, is not enforceable. In fact, your address in XXXX speaks volumes of the illegality of your company as well as your affiliation with XXXX XXXX!!! 

It has come to my attention that payday lenders must be licensed by the state of South Carolina in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have had with XXXX XXXX XXXX XXXX XXXX d/b/a XXXX  is not valid. 

I have conducted hours of research and have consulted with authorities. The practice of online payday seeking affiliations with Native American tribes in an effort to take advantage of the tribes special legal status as sovereign nations is abhorrent. This rent-a-tribe model is under scrutiny. Courts are cracking down on tribal lenders. 

The Consumer Financial Protection Bureau recently sued four online payday lenders in federal court for allegedly deceiving consumers and collecting debt that was not legally owed in many states. The complaint alleges violations of the Truth in Lending Act and the U.S. Consumer Financial Protection Act. It seeks restitution of money that borrowers paid involving illegal loans, plus penalties and a halt to the practices. While the lenders will likely claim that their loans are governed only by tribal law, not federal ( or state ) law, a federal court rejected similar arguments last year in a case brought by the FTC against lending companies. 

Tribal lenders have been found and identified in the Public Justice Report to be regularly making loans with interest rates well above state and federal regulations sometimes up to 700 percent. 

I have researched with XXXX XXXX XXXX XXXX XXXX d/b/a XXXX and there are volumes of complaints against this tribal entity. XXXX XXXX XXXX XXXX XXXX d/b/a XXXX hides behind its tribal status to act in a predatory, harassing, and very nearly illegal manner. In my research, the repeated theme is the harassment, threats and predatory nature. Additionally, the extreme in fee charging which goes against the policies of many states. 

The loan contract I have with XXXX XXXX XXXX XXXX XXXX d/b/a XXXX is not valid. 

I am revoking authorization for ACH withdrawals. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked. 

Please respond to this email with acknowledgment that my account has been satisfied in full and in good standing. 

I demand that any contact be made through email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General 's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. 

I must also inform you that I will be filing complaints with the Consumer Financial Protection Bureau, XXXX XXXX XXXX, the Federal Trade Commission, and Oklahoma and South Carolinas Attorney General 's Office. 

I expect a response from your company no later than 1 day from the above date regarding this matter. This response may only come via email. No telephone contact is permitted. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX SC XXXX XXXX XXXX

Company response to consumer: Closed with explanation