Consumer complaint received 2025-02-23 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Other advances of future income
Issue: Issues with repayment — 
Company: United First, LLC
State: NY

Complaint narrative:
United First , LLC [ Company Address ] [ City, State, ZIP Code ] Subject : Formal Dispute of Merchant Cash Advance Agreement and Allegation of Predatory Lending Practices Dear United First , LLC, XXXX XXXX  experts I am writing to formally dispute the terms and practices associated with the XXXX XXXX XXXX ( XXXX ) agreement dated XX/XX/year>, under which my business, received funding of {$150000.00} but we only netted {$30000.00} After a thorough review, I believe the terms of this agreement are not only excessively burdensome but may also constitute predatory lending practices, warranting potential legal scrutiny. 

Specifically, I raise the following concerns : Deceptive and Misleading Sales Practices : we were falsely told that accepting this financing was a prerequisite to qualify for an SBA loan at standard interest rates a promise that never materialized. This deception coerced us into signing the agreement under false pretenses, leaving our business saddled with excessive debt. 

Misleading Debt Consolidation Structure : The XXXX was presented as a debt consolidation solution, but it failed to clear or pay off any prior debts. Instead, we were required to make high daily payments, receiving a slightly higher amount back at the end of the week, which gradually tapered off. This structure ultimately left us with multiple debts at double the original rates, exacerbating our financial hardship rather than alleviating it. 

Unreasonable and One-Sided Negotiation Practices : When we attempted to renegotiate terms due to a significant decline in business revenue, your company only proposed temporary reductions that solely benefited your side, refusing to consider a fair, sustainable repayment percentage. Despite our efforts to reach an equitable solution, collections persisted aggressively, with no genuine intent to accommodate our businesss downturn.

Aggressive and Harmful Collection Tactics : After exhausting all resources to maintain payments including refinancing personal property, liquidating credit cards and personal savings, and even borrowing from friends and family we were still met with relentless threats of legal action and collections upon ceasing payments.

Breach of Confidentiality and Mishandling of Sensitive Information : When payments stopped, United First , LLC escalated its actions by emailing contracts and customer checks containing personal and sensitive business information to random, unauthorized email addresses unassociated with us or owner. This reckless breach of confidentiality not only violates privacy rights but also exposes United First , LLC to potential legal liability for mishandling sensitive data. 

Excessive Annual Percentage Rate ( APR ) : The contract outlines an APR of 182.5 %, which far exceeds typical lending standards and imposes an unreasonably high cost of capital. Such an exorbitant rate may violate state usury laws, depending on jurisdiction, and could be construed as unconscionable under contract law. 

Exorbitant Finance Charges : The agreement includes a finance charge of {$69000.00}, bringing the total repayment to {$220000.00} within an estimated term of 317 days. This results in an exceptionally high effective interest rate that appears exploitative and disproportionate to the funding provided. 

Actions of United First have lead to irreversible amount of debt, destruction of our business, reputation with clients spanning over 10 years, and personal health.

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