ComplaintsforNicholas Financial, Inc.
Need to file a complaint?
BBB is here to help. We'll guide you through the process.
Complaint Details
Note that complaint text that is displayed might not represent all complaints filed with BBB. See details.
Initial Complaint
06/05/2021
- Complaint Type:
- Sales and Advertising Issues
- Status:
- Answered
This business deals in predatory lending. I bought a vehicle valued at 12k+ and after 48 months have paid WELL OVER that amount. An employee spoke today and said interest is applied daily on the account and I still have a balance of about 12k.Business response
06/23/2021
Business Response /* (1000, 5, 2021/06/08) */ I have reviewed the customer's complaint as well as the account history and notes. The customer financed $12,300 for the purchase of her car on 01/14/2016. The retail installment contract called for 66 payments of $330.01. Assuming the customer paid as agreed with all payments made on the due date and incurred no extra fees, she would have paid a total of $21,780.66 over the 66 months. As with nearly all automobile loans, interest accrues daily so if a borrower pays late, the pay more interest and receive less principal reduction. Additionally, if the borrower incurs extra charges and chooses not to add those charges to the monthly payment as detailed in the monthly statement (and online), those fees are taken from the payment prior to principal reduction. This lowers the amount applied principal leading to higher daily interest than was originally scheduled. In this case, the customer has been late with nearly every payment. She has been over 90 days past due about 18 times and has almost always been over 30 days past due. She has incurred hundreds of dollars in late fees. Because she has not provided proof of proper insurance, she has incurred force-placed insurance charges (CPI) nearly every month totaling over $5000. Lastly, she has had 4 deferments and a due date change all extended to the customer in and effort to help her bring her account current. This all had an enormous effect on the amount of interest she has paid and has reduced her principal reduction greatly. If the customer can provide verifiable proof proper insurance for any or all of the periods of time in which insurance was force-placed, we can get refunds for the applicable periods and reconcile the account for the charges and the effect on principal and interest allocation. We would need proof of such coverage from 05/17/2016 to the present date. Nicholas Financial is not a predatory lender. We are licensed by the state, follow all statutes regarding interest rates, fees and charges, and are subject to examination by the state.Initial Complaint
05/25/2021
- Complaint Type:
- Sales and Advertising Issues
- Status:
- Answered
I disputed some inaccuracies on my credit report recently and it has now been 60 days with no response this shows a blatant disregard for the laws by choosing to ignore consumer disputes!Business response
06/11/2021
Business Response /* (1000, 5, 2021/05/26) */ I have reviewed the customer's complaint as well as the account history, complaints log, and dispute log. The customer's complaint appears to be filed against the wrong entity in that he has not filed a dispute with our company, nor have we received an indirect dispute from Experian. Note that the letter he attached as evidence of the letter sent to Experian is dated as of 05/25/2021 (same date as this dispute) and is not addressed to our company. If the customer has any questions about his account with our company, we invite him to call us at 800-237-2721 to discuss.
*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. ↩
BBB Business Profiles may not be reproduced for sales or promotional purposes.
BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.
As a matter of policy, BBB does not endorse any product, service or business.
Customer Reviews are not used in the calculation of BBB Rating
Contact Information
Customer Complaints Summary
52 total complaints in the last 3 years.
10 complaints closed in the last 12 months.