TMX Finance LLC Consumer Loan Complaint

TMX Finance LLC Consumer loan department,

Title loan Charged fees or interest I didn't expect California

On -/-/2015 I visited the TitleMax office - - - - -. - -, CA - and I got an auto title loan for $2600.00. I signed the California Loan Agreement, Promissory Note and Security Agreement '' attached as titlemax loan - '', surrendered my auto title, and I got a check in the amount of $2600.00. I was told the loan is a fully amortizing loan, and that I had approximately $1100.00 in available credit. - and - were the employees that assisted me. I was told I had to hand deliver my - payments to their office at - - - -. On -/-/2015 I drove to their offices and made my - payment for $320.00. The payment receipt is attached in the file


- - Loan amortization schedule.xlsx '' was emailed to me. Apparently, the had illegally added the admin fee of $75.00 onto the principal amount financed and used an APR of 143.88 % to calculate a payment amount of $320.00. The disclosed amount financed on the Federal TIL was $2600.00 and the APR -. I told them that they had violated the Truth-in-Lending disclosure. They said the APR of 143.88 % was the State '' APR which is calculated differently than the Federal APR. I told them that was nonsense, as the number of days used to calculate the APR is the same in every state, there is no such term as a state APR and that the federal disclosure would supersede any state disclosure regardless. They told me that they would forward my concern to corporate. Nothing was ever adjusted. On -/-/2015 I made my - payment of $320.00 and asked to receive $1100.00 from my remaining credit available. To loan me the amount of $1100.00 they created a new loan contract with an amount financed of $3700.00, an APR of 134 %. They gave me a check for $1100.00 and applied $2600.00 towards the outstanding balance of the - loan to pay it off. The - contract is attached as titlemax loan - ''. The California Finance Lender 's law allows payday lenders like Titlemax to charge an exorbitant interest rate such as 134 % only for loan amounts above $2500.00. Titlemax should have loaned me the $1100.00 at a rate capped by California 's usury law. Instead, in order to charge me 134 % for the $1100.00 they created a new loan for $3700.00, which included the admin fee in from the first loan in the amount financed, a rate of 134 % and a term of 4 yrs. The new payment amount was $420.00. On -/-/2015, I made a payment for $420.00. Once again nothing - $0.00 - was applied towards principle. On -/-/2015 I visited their offices. I was considering paying off the loan. I asked them to give me the original wet-ink promissory note from the - loan, marked as PAID OFF ''. They refused. They told me that they would return it to me only once the - loan was paid off, and that the first loan was still part of the - loan, even though when they funded the - - they withheld $2600.00 to pay off the - loan. - See Amount paid on your account - : $2600.00 under itemization of amount financed in the - loan contract ). I asked them for a complete accounting showing how the carryover interest was calculated, and they refused to provide me with one. Apparently interest is compounded on a daily basis, not monthly. I asked them whether there was a reply from corporate regarding the $75.00 admin fee, which had been added onto the principal and financed and the response was that they would apply a flat credit for - only if I paid off the loan that day. Given the circumstances, I decided not to pay off the loan. Instead I made a $500.00 payment towards my - payment. I went to