Consumer complaint received 2020-01-20 00:00:00
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: ONEMAIN FINANCE CORPORATION
State: TX

Complaint narrative:
I opened a loan with One Main Financial on  XX/XX/XXXX. The loan officer misrepresented prepayment terms to me in order to coerce me into putting up my automobile as collateral. She convinced me to leave my 8 % auto loan with XXXX  to reduce a cash loan with One Main from 35 % to 17.09 %, if I used the car as collateral. I stated it didn't make sense to me to do that and she told me if I did, I could refinance the car and call One Main for the auto pay off total and that way keep 17 % on the remaining balance instead of 35 %. I did this because she showed me the no pre-payment penalty clause. Two or three months after I signed the loan, I called to do this and another representative told me this was not possible. I was very angry and submitted a complaint to the OCCC in the State of TX to file a complaint against this fraud. One Main responded and agreed to reduce my interest from 17.09 % to 8 % because of the situation on XX/XX/XXXX. Since that date, One Main has refused to provide me an updated loan agreement and disclosure form as required by TILA. I spoke to a representative at One Main on the telephone on XX/XX/XXXX who confirmed my rate was not 8 % but 17.09 %. In a letter from the One Main Executive Office of Customer Care dated XX/XX/XXXX, they claim this was " misinformation, '' however, I continue to be usuriously charged. My payments continue to be the same at 8 % as they were at 17.09 %. These payments were calculated at 17.09 % and if they were correctly calculated at 8 % should be significantly less. I do not understand, nor do I have evidence by One Main, of what I am actually paying after this reduction. I am paying because of fear One Main will penalize me through default, collection actions, and/or negative credit reporting despite refusing to provide me updated terms and breakdowns and relying only on communications. Also, the original payment schedule on page one ( 1 ) of the One Main contracts directly contradicts itself in a subsequent extrapolation on page four ( 4 ), in the section entitled INTEREST BEARING LOAN, which states that the interest charged to the consumer is based against unpaid, principal balance. As a consumer, I interpret this to mean as I pay my loan, my principal balance decreases and each month. Therefore, as a consumer, I interpret that that my minimum payment should decrease monthly as my unpaid, principal balance also decreases. My payments were calculated, and remain calculated, according to the original term agreement and cash advance amount of {$34000.00} at 17.09 %. This repayment schedule was arrived at through a one-time, calculated lumped interest payment of {$18000.00} ( added to principal for a total payment of {$52000.00} ) divided across 66 months. It is not calculated against any decreasing unpaid, principal balance, which is a misrepresentation within the language of the origination contract. Again, I can not confirm my actual payment due based on 8 % interest as One Main refuses to provide updated contract terms and disclosures.

Company response to consumer: Closed with explanation