Payday loan, title loan, personal loan, or advance loan -- Charged fees or interest you didn't expect -- Complaint #11416562
Payday Lender Charged Maryland Resident Fees After Service Withdrawal
Complaint Overview
Complaint ID: 11416562
Company: Tilt Finance, INC.
Product: Payday loan, title loan, personal loan, or advance loan
Sub-Product: Payday loan
Issue: Charged fees or interest you didn't expect
State: Maryland
ZIP Code: 212XX
Date Received: 2024-12-31T12:00:00-05:00
Date Sent to Company: 2025-01-07T12:00:00-05:00
Company Response: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American
Risk Assessment
Risk Level: medium
The consumer was charged fees for a service they could no longer access due to state residency restrictions. While the company responded with monetary relief, the ongoing nature of the fees and difficulty in cancellation suggest potential UDAAP concerns.
Consumer Sentiment: frustrated
Topics: payday-loan, unauthorized-fees, tilt-finance, empower, maryland-consumer-protection, account-cancellation-issues
AI Analysis
This complaint details a frustrating experience with Tilt Finance, Inc. (operating as Empower), a payday lender. The consumer, a long-time customer in Maryland, was notified that Empower could no longer serve Maryland residents. Despite this, Empower continued to charge the consumer an $8 monthly fee for several months, even after denying loan applications due to their residency status. The consumer applied for a loan and was denied, only to discover another $8 fee had been debited from their account the same day. They found it difficult to cancel their account through the app, eventually resorting to email support. The consumer is seeking reimbursement for $48 in fees charged for services they could not receive, highlighting a significant disconnect between Empower's stated policy and their actual billing practices. This situation is unfortunately not uncommon in the payday and short-term loan industry, where fees can be a significant source of revenue, sometimes even when services are not rendered. The root cause likely stems from a failure in Empower's account management system to properly flag and cease charging fees for customers in states where they are no longer licensed or operating, or a deliberate practice of continuing to charge fees until the account is actively closed. The company's response of 'Closed with monetary relief' suggests they acknowledged some wrongdoing and provided a refund, which is a positive sign for this specific consumer, but it doesn't address the systemic issue of how these fees were charged in the first place.
Consumer Narrative
I had been an Empower customer for several years. I used them for small, short payday " Floats '' of up to {$220.00} every couple of weeks. Several months ago, EMPOWER notified me that they could no longer serve residents of Maryland after I had applied for XXXX of the loans. Subsequently, they took {$8.00} per month from my checking account ( XXXX ). Even though they knew beforehand that they would not give me a loan. Today, in fact, they took another {$8.00} from my checking account. Subsequently, but not yet knowledgeable about the {$8.00} fee charged to my account, I applied for a {$150.00} loan. They again turned it down due to my Maryland residency. I took {$8.00} from my account the same day. They make it very hard to find out how to cancel the account on the app. I eventually had to email help support and get the account closed. At least I hope, so I am not subject to further fees. I'll say this has been going on for XXXX plus months. As far as I'm concerned, I am out {$48.00} for fees that did me no good.
What You Should Do -- Consumer Action Plan
1. **Review the Monetary Relief:** Carefully examine the details of the 'monetary relief' provided by Tilt Finance. Ensure it fully covers the $48 in fees you were charged, plus any overdraft fees or other incidental costs incurred due to these unauthorized charges. 2. **Confirm Account Closure:** Verify that your account with Tilt Finance (Empower) is officially closed and that no further fees will be debited. If you have not received written confirmation, request it immediately. 3. **File a Complaint with the CFPB (if not already done):** Even though you received relief, filing a complaint helps the CFPB track patterns of misconduct. You can do this on their website: consumerfinance.gov. 4. **Contact Maryland's Consumer Protection Division:** Since you are in Maryland, file a complaint with the Office of the Attorney General's Consumer Protection Division. They can investigate potential violations of state laws. Visit: marylandattorneygeneral.gov. 5. **Consider a Chargeback:** If the fees were charged to a credit card, contact your credit card company to dispute the charges as unauthorized or for services not rendered. This is often time-sensitive.
Legal Context & Consumer Protection Laws
The **Truth in Lending Act (TILA)** requires lenders to clearly disclose all terms, fees, and interest rates associated with a loan. Charging fees after ceasing service could violate TILA's disclosure requirements. The **Consumer Financial Protection Act (CFPA)**, specifically its prohibition against Unfair, Deceptive, or Abusive Acts or Practices (UDAAP), is also relevant. Charging fees for services that cannot be provided, or making it difficult to cancel such fees, could be considered unfair or deceptive.
Regulatory Insight
This complaint pattern, where fees are charged after a company withdraws services from a state or denies applications based on residency, can indicate systemic issues with a lender's billing and account management processes. The CFPB has previously taken action against payday lenders for deceptive practices, including charging unauthorized fees and making it difficult for consumers to cancel services. Such practices can lead to enforcement actions if they are widespread and violate federal consumer protection laws.
Resolution Likelihood
75%
State-Specific Consumer Protections
Maryland has specific consumer protection laws that may apply to payday lenders. The Maryland Attorney General's Office, through its Consumer Protection Division, enforces these laws and investigates complaints. It's crucial to report this issue to them as they can take action against companies violating state regulations.
Industry Comparison
Many short-term lenders, particularly those operating online, have faced scrutiny for aggressive fee structures and opaque cancellation policies. Tilt Finance's response of providing monetary relief is a common resolution, but the underlying issue of charging fees for unavailable services is a recurring problem in this industry.
Related Issues
Frequently Asked Questions
Why was I charged fees by Empower after they stopped serving Maryland residents?
It appears Empower (Tilt Finance) continued to charge you an $8 monthly fee even after they notified you they could no longer serve Maryland residents and denied your loan applications. This likely happened due to an oversight in their system that failed to properly cancel your account or stop billing when they ceased operations in your state. It's also possible they continued charging fees until you actively requested account closure. This practice is problematic because you were being charged for a service you could no longer access, which may violate consumer protection laws regarding unfair or deceptive practices.
What are my legal rights when a lender charges fees for services I can't use?
You have the right to be charged only for services you have agreed to and can actually use. Laws like the Truth in Lending Act (TILA) require clear disclosure of all fees, and the Consumer Financial Protection Act (CFPA) prohibits Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). Charging fees after a service is unavailable or denied based on residency could be considered unfair or deceptive. You are generally entitled to a refund for such unauthorized or unearned fees. If the company refuses to refund, you can escalate by filing complaints with regulatory bodies.
Should I file a complaint with the CFPB even though Tilt Finance offered monetary relief?
Yes, you absolutely should consider filing a complaint with the CFPB. While the company's response of 'Closed with monetary relief' is positive for your individual situation, filing a complaint helps the CFPB identify patterns of misconduct. This data is crucial for them to understand if Tilt Finance has a history of similar issues with other consumers. It can lead to broader investigations and enforcement actions, protecting future consumers from experiencing the same problems. Your complaint adds valuable information to their oversight efforts.
What is Tilt Finance's track record with consumer complaints?
While specific detailed track records are best found through direct searches on the CFPB's complaint database, the fact that Tilt Finance (operating as Empower) is listed in the CFPB complaint system and responded with 'monetary relief' suggests they have encountered issues. Complaints about payday and short-term lenders often involve unexpected fees, difficulty in cancellation, and aggressive collection practices. The company's response indicates they are engaging with the complaint process, but the nature of the complaint itself points to potential systemic issues in their service delivery and billing.
What are my next steps if I'm still being charged or can't get my account closed?
If you are still being charged or have not received confirmation of account closure, your immediate next step is to send a formal written request (certified mail is best) to Tilt Finance demanding immediate closure of your account and a full refund of all unauthorized fees. If they do not comply within 10-15 business days, you should escalate by filing a formal complaint with the CFPB and your state's Attorney General's Consumer Protection Division. You may also consider contacting a consumer protection attorney to explore further legal options, especially if significant amounts are involved or if they continue to harass you.
How do these unauthorized fees affect my credit score?
Directly, these unauthorized fees themselves typically do not affect your credit score unless they go unpaid and are sent to collections. If Tilt Finance were to report an unpaid balance (representing these fees) to credit bureaus, and you failed to resolve it, that delinquency could negatively impact your credit score. Additionally, if these fees caused your bank account to have insufficient funds, leading to overdraft fees or other bank penalties, those issues could indirectly affect your financial standing, though not typically your credit score unless they lead to a debt in collections.
Are there any class action lawsuits against Tilt Finance or similar payday lenders for these types of fees?
Class action lawsuits are often filed against companies that engage in widespread deceptive or unfair practices, especially in the payday loan industry. To determine if there is an active or potential class action lawsuit against Tilt Finance or Empower for charging unauthorized fees or similar issues, you would need to conduct a legal search. Websites like Pacer (for federal court records) or legal news outlets specializing in class actions can be helpful. You can also consult with a consumer protection attorney who specializes in class actions, as they often have access to databases and knowledge of ongoing litigation.
Disclaimer
This analysis is generated by an AI and is for informational purposes only. It does not constitute legal advice.