Consumer complaint received 2025-01-06 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: ENOVA INTERNATIONAL, INC.
State: PA

Complaint narrative:
I am reaching out for assistance with an issue involving Enova NetCredit that has drastically impacted my financial health. Since initiating a line of credit with them in XX/XX/year>, I have been subjected to exorbitant and deceptive lending practices that have destabilized my financial situation and severely damaged my credit score.

Over the initial six months of this loan, prior to the account becoming stagnant due to its transition to collections around mid-summer, I encountered a hidden APR that was substantially higher than initial estimates. Unlike its advertised APR, the reality of what NetCredit has chargedwhich were impossible to predict before the loan due to deceptive practices, and which come to clear light only after the factthe effective APR has actually been around 275.4 %, which seems to violate multiple laws. This high rate resulted from combining " Statement Balance Fees '' and additional cash advance fees into a total financial impact of {$6300.00} on an original loan amount of just {$2500.00}, with interest and fees alone accumulating to {$3700.00}. 

These practices appear specifically designed to circumvent financial regulations, presenting what is effectively an unsustainable APR through various disguised fees. As a result, I am now faced with a cumulative balance significantly exceeding the original credit limit, with a past due balance of {$5200.00} that continues to escalate despite my attempts to settle the debt. The lack of transparent record-keeping and the misleading communications from Enova NetCredit have rendered it nearly impossible to discern the actual cost of this debt or effectively navigate its resolution.

Federal Laws : Truth in Lending Act ( TILA ) : This act mandates that lenders disclose the true cost of credit, including APR and all associated fees. Enova NetCredit 's practice of obscuring the APR likely contravenes TILAs requirements for clear and accurate financial disclosures.

Fair Debt Collection Practices Act ( FDCPA ) : This act prohibits the use of abusive, unfair, or deceptive practices in debt collection. The opaque financial statements and communications from Enova NetCredit or their agents may constitute a breach of the FDCPA. 
State Laws ( Pennsylvania ) : Pennsylvania Loan Interest and Protection Law ( Act 6 ) : This statute limits interest rates and mandates transparent loan term disclosures. The effective APR, significantly exceeding legal thresholds when properly calculated, suggests a potential violation of Act 6.

Pennsylvania Unfair Trade Practices and Consumer Protection Law ( UTPCPL ) : This law forbids deceptive business practices and consumer exploitation, both of which are evident in the structuring of Enova NetCredits fees and interest.

Pennsylvania Consumer Discount Company Act : This regulation oversees consumer lending and sets ma
ximum allowable interest rates. The covert fee structuring by Enova NetCredit might infringe upon this acts stipulations.

Given the gravity of the harm inflicted, could you please advise on the best course of action and any potential interventions to rectify this unethical practice and restore my financial stability and credit? 
Thank you very much for your time and consideration.

Company response to consumer: Closed with explanation