Consumer complaint received 2020-10-01 00:00:00
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Struggling to pay your loan — 
Company: BlueChip Financial
State: IA

Complaint narrative:
On XX/XX/XXXX I took out an online loan with Spotloan due to an emergency situation. I borrowed {$500.00} that was directly deposited into my account. The interest rate on the loan is 490 % and the payment schedule is {$91.00} every 2 weeks beginning XX/XX/XXXX. The total amount that is to be paid back is {$1900.00}. Allegedly, Spotloan is owned by BlueChip Financial, a tribally-owned entity organized under and governed by the laws of the XXXX XXXX XXXXXXXX XXXX XXXXXXXXXXXX XXXX of XXXX XXXX, a federally recognized XXXX XXXX and is located on and operates within the XXXX XXXX XXXX. This means that the laws of the state of Iowa do not apply to them because they are XXXX XXXX XXXX However, it seems that XXXX and XXXX XXXX provided the capital, marketing, underwriting, and other resources for BlueChip Financial dba Spotloan. XXXX and XXXX XXXX are non-tribal entities. The affiliation of XXXX and XXXX XXXX with the XXXX XXXX XXXX XXXX XXXX XXXX is a rent a tribe scheme to avoid state usury laws and to be able to make usurious loans to consumers. The most recent class-action lawsuit filed against XXXX XXXX XXXX, BlueChip Financial dba Spotloan, and XXXX XXXX has been settled for {$18.00} XXXX and is going to dissolve {$170.00} XXXX in consumer debt. The defendants say they did nothing wrong but wanted to settle the lawsuit. This tells me that they are not doing business legally and they know they would lose in court. This is not the only lawsuit that has been filed against Spotloan, either. There is also evidence that in XXXX Connecticut requested XXXX to cease and desist from lending in Connecticut. XXXX stated they would no longer make loans, however, they continued. Another order was issued to cease and desist lending in Connecticut and pay restitution for the illegal interest and pay a civil penalty, however, no restitution has been made. Illinois has also ordered XXXX to cease and desist lending in Illinois, however, in the most recent lawsuit, there is a plaintiff that is a resident of Illinois that obtained a loan with Spotloan in XXXX. Therefore, they again did not listen to the orders of the state. BlueChip Financial dba Spotloan is a predatory lender that has no regard for orders made by states, let alone the destruction that the illegal, high-interest loans have on consumers that are turning to them for help. They are preying on consumers that are financially unstable and are only adding to that instability. It is extremely hard to get back on your feet without a high-interest loan over your head and nearly impossible with one. I am speaking from personal experience. Since I borrowed money, I will pay the amount I borrowed ( principal ) back. However, having to pay 490 % interest which comes to over {$1400.00} in interest on a {$500.00} loan is ridiculous. This online loan that was supposed to be helping me has caused XXXX XXXX and XXXX because the payments are so high for so long. I refuse to be homeless, starved, without basic needs being met so a predatory lender can receive 490 % interest on a {$500.00} loan. Yes, I did sign the documents, however, when you are in an emergency situation, you are going to do things you would not do under normal circumstances. Obtaining a loan from BlueChip Financial dba Spotloan is something I would never do under normal circumstances and will never do again. It has been one of  the worst decisions I have made. The second being the other loan I had to obtain because of another emergency situation. I live paycheck to paycheck and unfortunately, my sources of help are strapped as well because of COVID, so I had no other option at the time. I will be reporting that company, as well. These companies need to be shut down because they are using tribal sovereign immunity as a shield to take the little bit of money most people have and line their already gold-lined pockets. Americans work hard for their money and do not deserve to be taken advantage of by lenders like BlueChip Financial dba Spotloan, especially during a pandemic where so many Americans have already lost so much. Predatory lending is never okay, but even more so not now. I have contacted BlueChip Financial dba Spotloan directly, however, I have not been able to reach an agreement regarding my loan. As stated, I am not trying to get out of paying the amount I borrowed, but the 490 % interest is excessive. While I am grateful I was able to take care of the emergency situations, the XXXX and XXXX that have been created are almost unbearable. ANYTHING is better than doing an online loan with a " tribal '' lender. I hope consumers read this complaint before doing business with Spotloan and save themselves the anxiety and stress that I am enduring. I hope the state of Iowa steps in to disband predatory lending for the sake of their residents. This unfair lending has to stop!

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation