Consumer complaint received 2026-07-18 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: ALCAR INC.
State: NY

Complaint narrative:
Context : I am a XXXX XXXX XXXX XXXX I am disputing a personal installment loan issued by DR Bank ( Administered by XXXX ) due to a major Truth in Lending Act ( TILA ) disclosure violation, deceptive merchant practices, and an immediate request for cancellation that was denied. Timeline of Events : XX/XX/year> : I got in a XXXX call with XXXX XXXX representative for XXXX XXXX XXXX XXXX XXXX XXXX ) to find out more about the program. I ended up going through with it and XXXX helped me get the financing setup with XXXX XXXX and sent me their merchant contract which I signed. I did explain I was unemployed and had some capital set aside and he ultimately decided I was a good fit. XX/XX/year> : Received confirmation of the loan application and my official payment start date is XX/XX/XXXX for XXXX months ; {$780.00} for XXXX month 's financed. XX/XX/year> : I Noticed the loan balance was {$8100.00} which is a {$1600.00} undisclosed finance charge over the signed contract price. I called XXXX, who verbally admitted over the phone that this {$1600.00} was the XXXX XXXX XXXX XXXX merchant fee '' passed down onto me onto my loan principal so the merchant would net their full {$6500.00} on their end instead of {$4800.00} if it wasn't passed down to me. After talking to XXXX, I reviewed the merchant contract and thought I reached a dead end after reading in the agreement, " you agree to pay the purchase price and explicitly agree not to initiate any chargebacks, disputes, or cancel this transaction with your bank, credit card company, or financing provider. Any attempt to initiate a chargeback or dispute will be considered a material breach ... " leading me to believe I am not within my right to dispute or even have a chance of questioning paying for this program. However, after reviewing the DR Bank Loan Agreement, I discovered the FTC Holder Rule Notice, which explicitly states that any holder of the contract is subject to all claims and defenses I could assert against the seller. This consumer protection clause completely overrides the merchant 's deceptive 'no disputes ' restrictions, I then knew I had the legal right to challenge this undisclosed finance charge. This fee was never disclosed in writing as a finance charge, violating the TILA rules ( Of which I didn't realize at this moment in time ) After realizing the true setup costs of real estate wholesaling and the undisclosed finance charge between the contracts, I immediately texted the merchant owner, XXXX, requesting a cancellation and full refund before loan disbursement. XXXX refused in writing, stating " there is no refunds '' XX/XX/year> : Contacted XXXX to explain my situation regarding contacting the merchant and requesting to open a cancellation case. I was told the cancellation was entirely up to the merchant, but they will try their best to reach out to them and get a resolution. July 12/13, 2026 : Called XXXX back to initiate a formal dispute after verifying that a hidden merchant financing fee in the principal balance is an illegal disclosure practice. After explaining the difference between the merchant contract and the amount financed with XXXX, the XXXX representative agreed to open a formal dispute case after discussing with her team. I explained I don't feel comfortable moving forward with this merchant. XX/XX/year> : Submitted as much documentary evidence ( text threads, call logs, and contracts ) directly to XXXX XXXX compliance they may find useful to help resolve my case.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation