Complaints

• Initial Complaint

  11/01/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  On 08/27/2024, I took out a personal loan in the amount of $600 with payment set to draft bi-wkly for $167.41. As of today, I've made a total payment of $669.64 for a $600 loan. Due to vital information received related to loan companies violating CA state laws (Usury rate by state), I took a closer look at this company (the loansmith), and discovered an unusual format next to business license. Their website displays the information as: Business License - Choice | Business License - Upfront. I immediately contacted the CA **** of Financial Protection and Innovation. In doing so, the agent I spoke with did not find an actually license #. However, she did see the full name of the said Choice and Upfront on their database, but no other information aside from the names. She also informed me that The Loansmith is a licensed Indian Tribe. The APR for this loan is ***%, while Usury rate for CA is 10%. Is this loan company in violation of the CA usury law? Should I continue to make payments to this company? I still have many #s of payments to make before this loan is paid in full with the APR of 720%. Please advise

  Business response

  11/15/2024

  Dear *** ******,
  
  Thank you for your patience while your complaint was being reviewed.
  
  The LoanSmith is the business name for *******************, as you can see from the business licenses that are publicly available on the companys website. As was prominently detailed in your loan agreement, ******************* dba The LoanSmith are wholly-owned arms of a federally-recognized Indian tribe. By signing your loan agreement, you confirmed your understanding and acceptance of these clearly stated facts.
  
  Upon review of your file, you have an active payment arrangement to resolve your outstanding balance.  We appreciate your business and, if you have any further questions or concerns regarding this matter and/or your payment arrangement, please do not hesitate to contact me with the information provided above.
  
  
  Kind regards,
  
  
  
  ******* ********

• Initial Complaint

  01/22/2024

  Complaint Type:

  Product Issues

  Status:

  Unanswered

  More info

  I took out a loan on October 19,2023 the amount was $400.00 I was able to make two payments the first payment was $57.11 and the second payment was $28.00 on Friday. On 11/7/2023 I reached out via the consumer finance protection bureau explaining my situation. I received a response from *********************************** on 11/21/2023 telling me to take the time I need on my finances. And to reach out at my convienience. I got an email from the loan smith on December 21,2023 telling me that my account is past due i sent an email to ******************************* on December 21,2023. And I attached the email and I explained the situation stating that I did get my debit card but I had to cover other debts. And explained that I needed more time. I havent received a response and I even called and left a voicemail I did not receive a response. To this date I have not received a email or a call back. Today on 1/22/2024 I received an email from the loansmith saying to settle for 25% and the email says to take action or else I will go into collections. I do not like being threatened and this company takes advantage and preys on the vulnerable. I am on a fixed income and I am barely making it.

• Initial Complaint

  11/07/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  I took out a loan with loan smith on 10/19. I had made two payments then I had experienced a hardship. Today on 11/7 I sent out an email to revoke ACH to avoid an overdraft. I reached out via email and explained my situation. I asked if My debit card got compromised so I ended up canceling my debit card and Im waiting to receive a new debit card in the mail which will take 5 to 7 business days. And as soon as I get it I will reach out to set a payment arrangement Then I get a call at around 4pm but I was working I called back. And it was the loansmith a lady called me and said that my account is in default and I can no longer borrow and I need to set up a payment. I explained that I reached out through email my situation. And she said I will receive two calls a day. I do not need this harassment. This is predatory lending and I would like this company to cease and desist. I have been going through tough times.

  Business response

  11/22/2023

  Dear ******************,
  
  
  A complaint filed with the Better Business Bureau on 11/7/2023 regarding your account with The ********************** was received.  
  
  Upon review of your file with The Loan Smith, after communicating with a representative on 11/9/2023,your contact information was removed as requested to prevent unwanted attempts to reach you by phone. 
  
  The LoanSmith appreciates the opportunities in the past to assist you in your times of financial need and we would like to work with you to resolve the current outstanding balance.  The desired resolution outlined in your complaint (i.e., waiting for your new debit card to arrive and then agreeing to a payment schedule that fits your budget) is perfectly acceptable.  When you are able to resume payments, please contact me at your convenience to discuss this matter and arrive at a resolution.
  
  If you have any further questions or concerns regarding this matter, please do not hesitate to contact me at the information provided above.
  
  
  Kind regards,
  
  
  
  *******************************

  Customer response

  11/22/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  ***************************

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩