Consumer complaint received 2025-04-06 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: Thaxton Investment Corporation
State: GA

Complaint narrative:
I am writing to file a formal complaint against [ Loan Company Name ] for engaging in manipulative and deceptive practices, violating Truth in Lending Act ( TILA ) provisions, and breaching contract terms, which have resulted in significant financial harm and negative consequences for me as a consumer. 

Manipulative Practices and Deceptive Advice : On XX/XX/year>, I received guidance from a loan manager at [ Loan Company Name ], who suggested that I take a no-fee deferment on my loan payments although the loan terms state there are undisclosed fees for deferment. This was presented to me as an advantageous solution, as the loan manager assured me that this would help me manage my payments without accruing additional fees. I was not behind on my loan only a few days late. Furthermore, I was advised to request a due date change, as the loan manager claimed they were well-versed in how the system works and that these steps would benefit me. Relying on this professional advice, I followed the loan managers directives. 

However, since following these instructions, I have found that all of my monthly payments are now being applied only to interest, and none of my payments are being applied to the principal balance of the loan. This is directly contrary to my understanding of how loan payments should be applied and has caused me significant financial harm. 

Violation of Truth in Lending Act ( TILA ) : In addition to these practices, I believe [ Loan Company Name ] is in violation of the Truth in Lending Act ( TILA ) by failing to disclose critical information about how my payments are being applied and how they affect the total loan balance. Specifically, under TILA, the lender is required to clearly explain the interest rate, payment schedule, and how payments are applied to the principal and interest. 

By providing misleading advice about deferments and due date changes without clearly outlining the implications, the company has misled me about the actual terms of my loan. Failure to disclose how these actions would impact the loan balancespecifically that payments would be applied only to the interesthas resulted in a misleading representation of my loan status, violating TILAs requirement for accurate and clear disclosures. 

Inaccurate Credit Reporting and Violation of the Fair Credit Reporting Act ( FCRA ) : In addition to this, the company is reporting an increased loan balance to the credit bureaus despite my consistent payments. Even more concerning, the company is now reporting payments as " unknown '' suggesting missed or not received, despite the fact that I have been making payments as directed by the loan company. I disputed this inaccuracy with the credit bureaus, but [ Loan Company Name ] has not corrected the reported errors. This has severely impacted my credit score and my ability to access credit in the future. 

Failure to Address Complaints : I have made countless calls to [ Loan Company Name ] 's headquarters to address these issues, but each time I am transferred to the same local branch, where I initially encountered the violation. Despite my repeated attempts to resolve this matter, I have been met with resistance, evasive responses, and a complete lack of accountability for the companys actions. The loan companys failure to take responsibility and resolve the issues has left me feeling helpless and taken advantage of and scammed. 

Request for Action : Given the severity of these issues, including the manipulation of payment application to the loan balance, false reporting to credit bureaus, violation of Truth in Lending Act ( TILA ) provisions, and the companys failure to properly address consumer complaints, I am requesting that your office investigate and bring justice to these predatory lending practices.

Company response to consumer: Closed with explanation