Complaints

• Initial Complaint

  08/03/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Got a loan and the interest was way to much we have paid over 4000$ on a 1000 loan and still owe $1150 they cannot provide r paperwork showing payments

  Business response

  08/23/2023

  Complete Cash Discount Title Pawn processes pawns for customers with clear titles on motor vehicles.  Our title pawn agreements are 30 day agreements.  If a customer is unable to satisfy the title pawn within 30 days, they must satisfy at least the finance charges, and the agreement will extend an additional 30 days if a principal balance is due.  This is also outlined in our one page title pawn agreement.  Every 30 days, finance charges accrue on the unpaid principal balance.  
   
  While our customers are only required by law to pay the minimum finance charges, we do discuss with each customer how high the finance charges will be if they choose to do that.  Customers are also provided with a payment example that will show how much total finance charge they will pay at the end of the loan if they renew their title pawn monthly for 3 months, 6 months, or 12 months.  Clearly stated, in bold print,  are the statements "utilizing this option will result in a high sum of total finance charges. Finance charges are applied every 30 days."  These are not scheduled payments, they are examples of how the title pawn will pay off if the customer chooses not to satisfy the pawn within 30 days, with the warnings that this will result in a higher sum of finances charges than what appear on the contract.  
   
  On March 10, 2023 the customer entered into a 30 day title pawn agreement for $1,287.78.  The APR on the title pawn, as explained to the customer in detail, is 300%, or 25% every 30 days beginning the day of the pawn.  Since this title pawn was not paid out within 30, 60, or 90 days, the finance charge was decreased on June 8, 2023 to 150% APR, or 12.50% every 30 days.  
   
  While Ms. **** did satisfy her finance charges for the first 30 days, the pawn went into default in the next 30 days as the finance charges were not satisfied.  The finance charges were not satisfied until July, but again, finance charges accrue on the unpaid principal balance every 30 days..
   
  According to our records, this is Ms. ****’s 4th pawn with our company.  After auditing the account, it has been managed appropriately, and we have no records that Ms. **** has requested her payment history, but we will gladly provide that for her.  
  
  If there are any additional questions, please let me know.
  
  Thank you,
  ***** ******
  

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