Consumer complaint received 2025-02-04 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Problem with additional add-on products or services — 
Company: Affirm Holdings, Inc
State: FL

Complaint narrative:
Complaint Against XXXX to the CFPB Consumer Financial Protection Bureau ( CFPB ) Complaint Complainant : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, FL XXXX Phone : XXXX Email : XXXX Subject : Complaint Against XXXX for Facilitating a Fraudulent Transaction and Failing to Uphold Consumer Protection Standards I am filing this complaint against XXXX for their role in facilitating a fraudulent transaction and failing to uphold consumer protection standards in a financial transaction involving legal services. XXXX acted as an intermediary payment processor between Affirm and XXXX XXXX XXXX, which I retained for legal representation. However, I have encountered significant issues with the services provided, and XXXX failure to enforce consumer protection measures has resulted in financial harm. 

Background of the Transaction : XXXX. Payment Processing Chain : I obtained a loan from Affirm to cover legal representation fees. 
Affirm disbursed the funds to XXXX, which then transferred the funds to XXXX XXXX XXXX. 
At no point did I have direct control over the disbursement of funds after Affirm sent the money to XXXX. 

XXXX. Issues with XXXX XXXX Firms Services : I retained XXXX XXXX Firm for a single legal motion, expecting full representation within the scope of a single hearing. 
The firm rapidly depleted my funds without justification, failed to provide competent legal services, and attempted to withdraw from my case without fulfilling their contractual obligations. 
I requested documentation and transparency regarding my retainer, and the firm failed to provide a fully executed agreement with both signatures in a timely manner. 
The attorney engaged in unethical practices, including unnecessary billing and mismanagement of my case, resulting in financial damages. 

XXXX. XXXX Failure to Protect Consumer Rights : XXXX failed to conduct due diligence before processing the funds to XXXX XXXX Firm. 
XXXX facilitated a transaction that was ultimately fraudulent and deceptive, as I was not provided with the legal services I paid for. 
Upon raising concerns regarding the mishandling of funds and my request for a refund due to fraudulent practices, XXXX has not provided any mechanisms for dispute resolution or refund facilitation. 
XXXX system lacks consumer protection measures, leaving clients like myself vulnerable to legal service fraud without recourse. 

Allegations Against XXXX : XXXX. Failure to Conduct Due Diligence & Consumer Protection Violations : XXXX accepted and processed payments without ensuring that the legal service provider was in compliance with ethical and professional obligations. 
No mechanisms were in place for verifying retainer agreements before disbursement of funds. 

XXXX. Negligent Handling of Funds & Lack of Dispute Resolution Mechanism : XXXX did not offer me any dispute resolution process once I raised complaints about XXXX XXXX Firms misconduct. 
Unlike credit card companies that provide chargeback mechanisms, XXXX has no system to protect consumers from fraudulent legal billing practices. 

XXXX. Unjust Enrichment & Facilitating Fraud : By transferring funds without oversight and failing to address fraudulent legal services, XXXX has financially benefited from an unethical transaction. 
This violates CFPB consumer protection regulations, as financial intermediaries have a duty to ensure fair and lawful transactions. 

Relief Sought : XXXX. Investigation into LawPays Practices : The CFPB should investigate whether XXXX has violated Regulation E ( Electronic Funds Transfer Act - 15 U.S.C. 1693 et seq. ) by failing to provide appropriate consumer protections in legal service transactions. 
XXXX. Implementation of Dispute Resolution Mechanisms : XXXX should be required to implement consumer dispute protections, including chargeback or escrow processes, when handling legal fee payments. 
XXXX. Civil and Regulatory Penalties Against XXXX : Given LawPays negligence in ensuring ethical transactions, CFPB should impose penalties and require corrective actions. 

Supporting Documentation : I am prepared to provide : Retainer Agreement ( both incomplete and fully signed versions ) Billing statements from XXXX XXXXXXXX XXXX Correspondence with the firm regarding disputed charges Evidence of Affirms loan disbursement to XXXX My complaint filed with Affirm disputing the charges I urge the CFPB to take immediate action to investigate LawPays role in this unethical transaction and protect consumers from predatory legal billing practices. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation