Consumer complaint received 2025-02-21 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: UNIVERSAL ACCOUNTS LLC
State: CA

Complaint narrative:
I signed a loan for XXXX services in XXXX XXXX through XXXX Account XXXX from a total of {$5000.00} to be paid over a 24 month interest free promotional period on XX/XX/XXXX with the terms below outlines in email. 

Total amount : {$5000.00} Promotional Term ( for no interest! ) XXXX First payment due : XX/XX/XXXX On XX/XX/XXXX, I was still getting notice for reoccurring payments even though I had paid my entire balance off. I checked my account and found that I was charged {$1500.00} in interest even though I was told I would not have additional interest if payed off in 24 months. I paid all remaining principal on XX/XX/XXXX due to fear of getting charged interest. I then called XXXX to clarify on XX/XX/XXXX and they said it will take a day or two for my final lump sum payment clearing my principal to reflect on my account and the assessed interest of XXXX would disappear. Then I checked my account again on XX/XX/XXXX and found the interest still there. I then called again on XX/XX/XXXX and was told that due to making only payments of {$150.00} a month ( which was the monthly payment they offered when signing up for the payment account, turns out this was over 36 months instead of the 24 I agreed to in the original contract I signed ) I had {$1200.00} left on my balance after the 24 month period, however to reiterate I paid off all principal by XX/XX/XXXX due to fear of additional interest. They stated that interest was only deferred for the 24 month period and therefore as there was 1 month after the 24 months period I pull be charged all deferred interest of {$1500.00} on my original principal ( this is despite there only be {$1200.00} left on the balance the day the 24 month promo period ended, and {$0.00} on my balance by XX/XX/XXXX ). They said I signed the contract and therefore there was nothing I could do. I then called XXXX and was told it was my responsibility to read the contract send to me AFTER signing it and adjust my monthly payments accordingly. 

However, overall I am sure that this is a predatory lending practice as I was not told or shown the relevant clause of the contract while signing the original loan regarding the fact that Interest was only DEFERRED and would be on the original balance if I even had {$1.00} left on my balance at the end of 24 months. To clarify, this was only in the PDF of the signed contract sent to me in PDF form AFTER I had signed it at XXXX, the information was not available prior to signing the contract. It is also predatory lending practices for the monthly payment amounts to be calculated automatically on XXXX payment portal to be over 36 months ( ensuring that I will not pay off my loan within the 24 month promo period and that I will be charged the interest ). 

As you can see in the attached documents, the automatic payment of {$150.00} was stated THE DAY I signed the contract as it is included in the last few pages of the contract, so I did not determine this amount.

Company response to consumer: Closed with explanation