Consumer complaint received 2026-02-23 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Getting the loan — 
Company: REGIONS FINANCIAL CORPORATION
State: FL

Complaint narrative:
I submitted a complaint XXXX and received a response in which Regions Customer Service repeated my complaint and described what they had already explained and confirmed that they initiated a loan and had me sign it without full disclosure of the terms. The statement they made verbally and in their response that the terms were " clear and conspicuous and disclosed '' is totally false. I am submitting the complaint again since that is an unacceptable resolution. They committed FRAUD. They must be held accountable for deceptive practices. I am repeating my original complaint here and the substandard and insufficient response below it. Just because they explained their fraudulent practices and have now used it to justify not taking the correct action does not mean the matter is resolved. " I submitted an application for a home improvement loan to Regions/EnerBank USA XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX UT XXXX XXXX XXXX at the suggestion of my contractor XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX XXXX ) XXXX XXXX XXXX, XXXX. He has used this service many times to help customers finance large projects for XXXX XXXX. My project to install hurricane impact windows and doors is {$110000.00} and the down payment is {$56000.00}. The max amount that Regions allows to be borrowed for this type of 12-month same as cash loan is {$65000.00}. I was pre-approved for {$65000.00} on XXXX XXXX and then between that date and XXXX XXXX I had multiple discussions with loan officers getting them all the income verification and risk assessment documents they needed. I was approved on XXXX XXXX, XXXX for the {$65000.00}. That is when the trouble began. The contractor believed I could use the loan for the deposit and during none of the different conversations I had with the loan officers to provide all the required documents to verify my income and credit-worthiness, no one stated there were any restrictions on the loan use. In all the documents and contracts that I signed there was no statements of limits on how much or when I could get the money. The only restrictions stated in the application form and contract were that the contractor ( who gets the money directly ) can only request distributions of at least {$1000.00} and there are limits on how many times they can request money. When the contractor requested the amount for the deposit, he was told that he could only get XXXX of the deposit amount from the approved loan and the rest could be paid out when the job was finished. This was the first time he had ever encountered this, and as I stated, this was never stated verbally or in writing to me. The XXXX escalated this issue to their rep in the loan department since it held up the project but was told that " no exceptions '' could be made. But there was never any policy indicating this would be " an exception ''. I also submitted a complaint to the bank loan department and spoke to multiple people. The customer service people at the bank checked with their management and underwriting and told me they had never heard of this policy and no one could find documentation on it. I was told that there is no written policy related to how much and when a loan recipient can use the money. I was told that a disbursement officer arbitrarily decided that " too much money was requested at once '' and they decided I could only take money equal to 1/3 of the deposit until the work is complete. They never asked for a copy of the contractor project contract and proof of the cost or the amount of the deposit. They told me they could do nothing about it but submit an internal complaint on my behalf and I have heard nothing. I am submitting this formal complaint because I believe this is fraud, I signed a contract for {$65000.00} loan to be used for this project and I needed it for the deposit. Once I was approved for the loan and was told that despite neither the applicant or contractor receiving information and there not being any policies or information about restrictions on how much money can be disbursed and when, I was denied my money. I am putting in this complaint because I was approved for this loan, I have a legitimate need for this money and I am being arbitrarily denied, which denied me the ability to do this project on time. I had to go to other sources of money for the deposit and never would have signed the loan documents if I had known that I would be prohibited from using the money for the deposit. There was no information in any of the application or loan documents stating that there were any restrictions besides using it on this project. I want them to release the funds asap so I can proceed with the project and replenish other sources/savings that I had to pull from. I also want them to include all restrictions in the application and contract so no one else will ever go through this again. Thank you for your assistance in getting me the needed funds. XXXX XXXX XXXX XXXX XXXX A review of our records indicates you and XXXX XXXX applied and subsequently obtained a closed-end line of credit from the Bank in the amount of {$65000.00} to purchase certain goods, equipment and/or services from your selected Contractor. The Consumer Note and Disclosure Statement ( the Note ) signed on XX/XX/XXXX, was clear and conspicuous and disclosed once your project is completed, the Contractor would either submit a final disbursement request, subject to the payment request notification process set forth in the Note, or otherwise notify the Bank to close your line of credit. Please note that while the Note does not reflect precise funding restrictions, it does indicate that the final disbursement should be requested upon completion of your home improvement project and ( as you indicated ) each disbursement, other than the final disbursement, must be equal to or greater than {$1000.00}. Upon receipt of your Complaint, the Bank has reviewed the matter and confirmed that all policies and procedures regarding disbursements have been followed and are in accordance with your Note. Our records reflect your selected Contractor requested the full amount totaling {$65000.00} be released but on XX/XX/XXXX, you spoke with a Bank representative and confirmed the project had just started. The Bank representative then advised that the Bank typically requires 95 % of the project we are funding to be completed to release the final disbursement per request. Please note our records reflect your selected Contractor has been advised of the disbursement requirements prior to your home improvement project and on XX/XX/XXXX, they were also contacted to be reminded of the disbursement requirements and other potential options that could be reviewed, if applicable. On XX/XX/XXXX, the Bank approved and disbursed {$19000.00}, per your selected Contractors request. Additionally, a review of all relevant calls reflects that on XX/XX/XXXX, the Bank provided further clarification regarding the matter and why the full disbursement could not be released, which was relayed to you the same day. After additional review, on XX/XX/XXXX, a Bank representative attempted to contact you but was only able to leave a message, after which you returned the call the same day. The Bank representative attempted to review your Note with you, but you did not allow them to proceed and requested for the full amount to still be released. Please note, as you were advised, you are unable to use the approved funds for a deposit, and the Bank will not be able to release more than {$19000.00} without at least 95 % project completion. We understand your time is valuable and apologize for any confusion or inconvenience that XXXX have resulted from this matter. We appreciate feedback such as yours as we continue to review our policies and procedures to ensure we are meeting our customers needs. Should you need further assistance, please contact our Customer Service team at ( XXXX ) XXXX Monday through Friday from XXXX XXXX XXXX XXXX XXXX. XXXX XXXX. Sincerely, XXXX XXXX XXXX XXXX Department Regions Bank ''

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