Consumer complaint received 2025-01-10 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Struggling to pay your loan — 
Company: ENOVA INTERNATIONAL, INC.
State: SC

Complaint narrative:
I am filing this formal complaint against NetCredit and its servicing XXXX XXXX Bank XXXX XXXX, for failing to honor a settlement agreement entered into on XX/XX/XXXX, and for their wrongful reporting of late payments on my credit profile. Despite my efforts to resolve the loan for XXXX YEARS, NetCredit has failed to provide me with instructions to complete the settlement. As a result, they have falsely reported an additional 24 months of late payments, severely damaging my credit. 

Given the serious nature of these actions, I demand that NetCredit void the loan, delete the entire tradeline from my credit profile, and that appropriate regulators and legal entities investigate this matter. Should my demands not be addressed promptly, I have retained legal counsel and will pursue direct legal action against NetCredit and its XXXX XXXX Bank XXXX XXXX for breach of contract, consumer fraud, and violations of Arizona state law and federal law. 

Factual Background and Violations Failure to Honor Settlement Agreement On XX/XX/XXXX, I entered into a settlement agreement with NetCredit to resolve an outstanding loan. The agreement required NetCredit to provide clear instructions on how to fulfill the settlement. Despite my repeated inquiries, NetCredit failed to provide these instructions, leaving the settlement incomplete. As a result, they reported an additional 24 months of late payments to the credit bureaus, even though I was actively waiting for settlement instructions and had no means to resolve the debt in the absence of this information. This constitutes fraudulent and deceptive business practices under the Federal Trade Commission Act ( 15 U.S.C. 45 ).

Improper Credit Reporting NetCredits actions constitute a violation of the Fair Credit Reporting Act ( FCRA, 15 U.S.C. 1681 ), which mandates that information provided to credit reporting agencies must be accurate and complete. The false reporting of late payments from the date of the settlement agreement is an explicit violation of this law, as these payments are inaccurate and unjustly reflect deliberate nonpayment when, in fact, I was waiting for instructions to settle the debt. This is further exacerbated by their failure to correct or update this information upon notice. 

Breach of Contract and Fraud NetCredits failure to uphold the terms of the settlement agreement is a direct breach of contract under Arizona Revised Statutes ( A.R.S. 44-1001 et seq. ), which governs contracts in Arizona. The failure to provide settlement instructions after agreement is a material breach, rendering the contract unenforceable. NetCredit has engaged in fraudulent inducement by providing unclear, unfulfilled terms, knowing that I was vulnerable due to my mental health condition at the time the loan was taken out. This constitutes intentional misrepresentation and fraud under A.R.S. 44-1010. 

Predatory Lending and Unfair Practices The terms of the original loan and the settlement agreement, as well as the lack of transparency and unilateral enforcement of additional late fees, constitute predatory lending and violate Arizonas Predatory Lending Statutes ( A.R.S. 6-634 ). These practices have caused substantial harm to my financial standing, particularly as they exploit vulnerable consumers facing mental health challenges. XXXX behavior is in direct violation of the Arizona Consumer Fraud Act ( A.R.S. 44-1521 ), which prohibits deceptive or unfair business practices. 

XXXX XXXX XXXX and Vulnerability At the time the loan was taken out, I was experiencing a XXXX episode due to my diagnosis of XXXX XXXX, which impaired my ability to make rational financial decisions. The unreasonable terms of the loan were exacerbated by my impaired judgment. NetCredit took advantage of my mental health vulnerability, knowingly entering into a contract with unconscionable terms, in violation of Arizonas Consumer Protection Statutes ( A.R.S. 44-1522 ), which prohibit contracts deemed unconscionable or that take advantage of consumers in a vulnerable state. 

Legal Violations and Remedies Violation of the Fair Credit Reporting Act ( FCRA ) NetCredits inaccurate reporting of late payments constitutes a violation of the Fair Credit Reporting Act ( FCRA, 15 U.S.C. 1681 ), which requires that all reported credit information be accurate, complete, and timely. By reporting false late payments, NetCredit is in clear violation of this law. 

Breach of XXXX XXXX XXXX failure to provide settlement instructions violates the terms of the settlement agreement and Arizona contract law ( A.R.S. 44-1001 et seq. ). This breach has caused financial harm and continues to damage my credit report.

Fraudulent and Deceptive Practices Under both Arizonas Consumer Fraud Act ( A.R.S. 44-1521 ) and the Federal Trade Commission Act ( 15 U.S.C. 45 ), XXXX actions amount to fraud and deceptive business practices. These actions are further compounded by their failure to correct the inaccuracies after being notified of the issue. 

Predatory Lending NetCredits original loan terms, coupled with the settlement process, are in violation of Arizonas Predatory Lending Laws ( A.R.S. 6-634 ), which prohibit high-cost loans with unreasonable terms that exploit consumers. Their conduct is especially egregious given the mental health factors involved. 

Demands for Immediate Action XXXX the XXXX I demand that NetCredit void the loan in its entirety, as it was entered into under unfair and unconscionable terms and because the settlement agreement was not honored. 

Delete the Entire Tradeline I demand that the entire tradeline related to this loan be deleted from my credit report. The false reporting of 24 months of late payments must be removed immediately, as it is inaccurate and a direct consequence of XXXX failure to provide settlement instructions. 

Immediate Investigation of Business Practices I request that the relevant regulatory bodies investigate XXXX predatory lending practices, including its breach of the settlement agreement, inaccurate reporting, and potential violations of state and federal law. 

Notice of Legal Action Please be advised that I have retained legal counsel to assist in resolving this matter. If NetCredit and XXXX Bank XXXX XXXX fail to resolve this issue by XX/XX/XXXX, I will file a formal lawsuit for breach of contract, fraud, consumer protection violations, and damages under both Arizona state law and federal law. I will seek compensatory damages, punitive damages, and attorney fees in this matter. Additionally, I reserve the right to file a formal complaint with the Consumer Financial Protection Bureau ( CFPB ) and Federal Trade Commission ( FTC ) as well as pursue action under the Fair Credit Reporting Act ( FCRA ). 

Conclusion I request that this matter be resolved promptly and satisfactorily. If NetCredit fails to provide the requested resolution by XX/XX/XXXX, I will proceed with all available legal remedies to hold them accountable for their unlawful actions.

Company response to consumer: Closed with explanation