Payday loan, title loan, or personal loan -- Problem when making payments -- Complaint #5238782

Complaint Overview

Complaint ID: 5238782

Company: Rosebud Economic Development Corporation

Product: Payday loan, title loan, or personal loan

Sub-Product: Installment loan

Issue: Problem when making payments

State: Hawaii

ZIP Code: 96740

Date Received: 2022-02-18T12:00:00-05:00

Date Sent to Company: 2022-02-18T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

I applied for a payday installment loan from Big Star Credit ( Henceforth BSC ) on XX/XX/2022 and was approved for the amount of {$500.00}. When I was applying, the application had an area which asked if I Did or Did Not approve the use of ACH payments ( ACH Authorization ). When I initially filed the application, I selected that I did NOT authorize ACH transactions as my payment method, and went to submit my Application. At that time, I was given an error message saying that the " Form could not be submitted, '' as XXXX did not accept applications where ACH authorization is not selected. Therefore, since I needed the loan I went back and selected that I DID authorize these ACH transactions despite not originally wanting to. After the application was submitted, I was shown a payment schedule and given my terms and accepted the loan. Fast forward to now, it is XXXX XXXX. I have made my first XXXX payments successfully, allowing for the ACH transactions to process. Since I still did not feel comfortable with them, I wrote to the BSC support line and officially revoked my ACH authorization. When I did so, they wrote back accepting my revocation, but also, they included in the email language that suggested that they would consider this as intent not to pay or fulfill my financial obligation unless I called them before my next payment to set up a new payment process. In fact, the exact language suggests that they are now expecting me to pay the loan in full and demanding this, as I no longer allow them to withdraw the funds through ACH. I informed them that while I do need to make sure each payment is made on time, I am not required to allow for ACH transactions as a form of payment, and that so long as I respect the original payment schedule, I was still adhering to the agreement I signed in terms of payment. Their message threatened negative reporting to the major credit bureaus as well as possible legal action should they determine that I had a " failure to pay '' and that I needed to call them asap to schedule new payments. To this degree, I again responded that I am following my legally granted rights and that if they chose to press this further I would report these actions to the proper authorities. Unfortunately, while I have the email where they made these statements, I do not have a way to provide proof of their requirement for ACH authorization as this step is only available during an application. However, I would urge the proper authorities to investigate this issue as this is a violation of consumer protections.

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Disclaimer

This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

Related Pages

• Rosebud Economic Development Corporation Company Profile
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