ComplaintsforOn Deck Capital, Inc.

• Initial Complaint

  08/12/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  The terms of the revolving line of credit were initially stated by the broker on the phone to be around 5-6% apr. When I received the contract, the offer was stated to be 57% apr. In the phone conversation that followed, the broker advised me to pay off the balance in full by each payment deadline to avoid interest. On July 22, 2024, I withdrew $4,000 on the revolving line of credit. On August 8, 2024 I completed payment for the $4,000 and discovered that I was billed 57% apr DAILY for each day I had the loan out PRIOR TO the monthly due date in the amount of $106.25. On the same day, I requested to close the account to avoid any further fees. I was told I would need to wait a full week before the account could be closed despite having paid the balance in full. My complaint is that the contract is deliberately misleading. The "daily interest rate" is first mentioned on page 2 of the contract in a section title "Early Prepayment." The first direct mention is on the bottom of page 3. This makes it clear that the company's primary objective is to take as much interest from the borrower as possible, towing the line between what is legal and illegal. I am ashamed to admit that I ever did business with a company such as this and regret every moment I wasted trying to achieve a loan for my business that ended up doing more harm than good.

  Business response

  08/23/2024

  Thank you for allowing us to respond to ******************** complaint.

  During our investigation into ******************** complaint, we could not uncover any misleading information on behalf of the broker company.
  

  Our APR is computed by multiplying the periodic rate by the number of periods in a year. While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate interest expense. **************** may find the total cost of interest paid per dollar borrowed. This amount is exclusive of fees. The APR should be considered in conjunction with the total cost of capital and maybe most useful when comparing financing solutions of similar expected duration. APR is calculated according to the principles of 12 C.F.R. 1026 (Regulation Z). **************** was sent an email with the loan offers and the terms as well as the agreement disclosed this information before *************** accepted the loan offer.
  

  The line of credit accrues interest per day as outlined in the agreement, **************** was billed for 17 days of interest at $106.25 after having drawn $4,000.00. Unfortunately, a refund is not warranted as requested. We have included a copy of the agreement for your records.
  

  If **************** would like to discuss this further, she can contact us at ****************************************** or **************.

  Thank you. 

   

• Initial Complaint

  08/05/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  In January of 2024, I was facing a difficult moment as a business owner and reached for what would become the most predatory loan I have ever encountered. I didn't know it was predatory at the time and I do believe that the lender I spoke with was very good at what he did to convince me that it would be ok and would benefit my business to take out a ****** loan that would end with a *****% interest rate. I found On Deck through an advertisement from a company called Lendio that matches folks with lenders for business loans. My group psychotherapy practice had gone through a growth that was too rapid and I made the mistake of not hiring enough therapists initially. I was facing having to skip myself on payroll again in January and could not bear the this as the sole supporter of my family. I disclosed this to the representative from On Deck and he told me that this loan had a "progressive" interest rate and that this meant that it would start out at 18% and then over time move to the *****%. I had also disclosed to him that I was currently on a payment plan with the *** for 2022's taxes and he used that information to convince me that this was a smart move. He said that all of the billionaire business people understand that the higher the interest rate on a loan, the more they can deduct from taxes. He said that I would never get to that ridiculously high interest rate if I am able to pay the loan off faster. He convinced me that he could get me the money very quickly (next business day) and that this could help me with my current situation and then he could help me get into a more traditional loan in a few weeks. I had made two ****** payments to this loan to try to pay it off faster and that's when I had discovered that he meant that I needed to pay the loan off completely in order to save myself from that interest rate. I do feel that this was incredibly misleading and I want others to avoid being in this situation as vulnerable business owners.

  Business response

  08/08/2024

  Thank you for allowing us to respond to ***************************** complaint.
  
  Based on our internal review and conversation with *** ******** broker team at ************ we could not find misleading information being given as stated. We have determined that ************************* on behalf of Out of the ***** Therapeutic Counseling, LLC entered into an operative agreement with the following terms; Loan amount at $50,000.00 including a total interest cost of $27,500.02, and an origination fee of $1,250.00 deducted at the time of disbursement. The agreement also qualifies for a 25% interest reduction on the remaining interest at the time of payoff. 
  
  OnDeck is as transparent as possible when we close on all of our loans regarding loan costs, including but not limited to interest expenses, and fees. Our APR is computed by multiplying the periodic rate by the number of periods in a year. While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate interest expense. ****************** may find the total cost of interest paid per dollar borrowed at 55.0 cents. This amount is exclusive of fees. The APR should be considered in conjunction with the total cost of capital and maybe most useful when comparing financing solutions of similar expected duration.APR is calculated according to the principles of 12 C.F.R. 1026 (Regulation Z), OnDeck has complied with all applicable laws.
  
  We have included a copy of ********************* Loan and Security Agreement Supplement for your records.
  
  If ****************** has any additional questions on our products, she is more than welcome to contact OnDeck **************** at: ************** or via email at *******************************************

  Customer response

  08/15/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  For the record - I have two advanced graduate degrees and I cannot comprehend the response they gave to my complaint. It's the equivalent of going to a surgeon and having them speak in all sorts of technical medical language, but it's the legalize version. 

  These companies all say that they record conversations and yet they can't find evidence that their customer service person who talked me into the loan originally was using manipulation tactics to talk me into this and assured me that it would be ok? That it was actually a smart move I was making for my business? That he could get me into a proper loan with a much more reasonable interest rate in a few weeks? 

  I am not expecting this company to do anything for me because that would go against the nature of this being an extremely predatory endeavor on their part. The fact that this is actually legal is horrifying. I just want this to be on the record so that I could possibly spare another small business owner from falling into the same trap. 

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  *************************
  
  
  
  
   
  

  Business response

  08/22/2024

  Thank you for allowing OnDeck to respond to *** ******** rejection.We do understand ****************** is not satisfied with the findings of her complaint. However, we performed a thorough review of the complaint and we were unable to find any misleading information. The signed agreement lays out the complete terms and conditions of the term loan.
  Ondeck sincerely apologizes for the inconvenience this matter may have caused ******************. Ultimately, we believe it's important for each small business owner to decide what type of financing is best suited for them. If ****************** would like to discuss this further, she is more than welcome to contact OnDeck **************** at ************** or via email at ******************************************. 

  Thank you. 

• Initial Complaint

  07/02/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  In July 2018 my company was contacted by CAN Capital for loan purposes. My company was doing well prior but faced a sudden hardship due to losing a contract. Within days a loan was secured and $49,950 was deposited into a business checking account on August 1st 2018. In brief the repayment terms were daily at $207.58. In total CAN Capital withdrew $28,821.52 between August and November of 2018.Our company ended 2018 in the negative and COVID 19 followed.First quarter of 2019 I contacted CAN Capital for repayment arrangements. After several phone calls and emails they chose not to agree to the terms. As of January 22, 2019 the loan balance was $13,492.70 per email from ******************. On May 13th 2020 I was contacted by ***************************** to discuss repayment options for the balance. Due to COVID 19 our business was shut down, but we agreed to make monthly payments of $250.00. After several phones calls and an email sent authorizing the payments they stopped responding.September 2020 I was contacted by *****************************. Email stated that she was scheduled to update counsel on our case. She stated that she previously sent options of resolution (no notice was sent prior) of our agreement with their client.Fast forward to June 2024!!! Received standard mail from my State ************************************ Notice of entry of judgment states that a foreign judgement was entered against me and my company and in favor of On Deck Capital **** The attorney representing the plaintiff is ***************************/******* ********* and Screba LLC. It states the judgement is a result of proceeding held in the state of ****???This debt was sold over and over, they failed to send notice and my rights have been violated per FCRA. Contacted my states attorney general and an attorney. Please due your due diligence and research before signing a contract. DO NOT ENGAGED IN ANY BUSINESS WITH CAN CAPITAL/ON DECK CAPITAL OR ANY OTHER LOAN COMPANY WITH UNREALISTIC TERMS /INTEREST RATES.

  Business response

  07/31/2024

  ****** ******** ****** ** ************* ******************* **** ***** ****************** ***  ** ********
  
  Dear Complaint Analyst,
  
  
  Thank you for bringing this issue to our attention.
  
  
  We have reviewed the Complaint.  It appears that on December 8, 2020, a lawsuit was filed in ****************, **** by CAN Capital ********************** and against ********************* and ***********************, Case No. *********.  On July 16, 2021, that Court entered judgment against the above-named Defendants; however, the caption of the judgment incorrectly listed On Deck Capital, Inc. as the Plaintiff, when it should have listed Can Capital ********************* Can Capitals counsel then domesticated the judgment in the State of Delaware. 
  
  
  To be clear, On Deck Capital, Inc. does not have any interest or ownership in that judgment, and did not authorize the judgment to be entered in its name.  Upon discovery of the misnomer on the judgment, On Deck Capital, Inc. requested that CAN Capitals counsel to take the following steps to ensure that the misnomer on the judgment will be corrected to reflect CAN Capital *********************
  Filing a Motion to Vacate the Judgment in the name of On Deck Capital, Inc., and to correct the misnomer to reflect CAN Capital ********************* on any further filings in that action;
  Withdrawing the Petition to Domesticate Foreign Judgment filed in ********, and to correct the misnomer to  CAN Capital ********************* on any further filings in that action.
  
  
  OnDeck has requested that Can Capitals counsel take these actions without delay, and will monitor to ensure that the judgment in OnDecks name is corrected to reflect the correct plaintiff or vacated. 
  
  
  Sincerely,
  

  Final Resolution Department
  ******************************************
  D: ************** | F: **************
  D: ************** | F: **************
  

  
  

• Initial Complaint

  06/03/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I had a highly distressing experience I have had with ON DECK ! In January 2023, I was contacted by a loan broker who claimed to work very closely with ONDECK through a partnership with Fundera. This broker promised to secure a business loan for me and assured me that the loan would be refinanced within a month. The entire conversation revolved around building my business credit and obtaining a loan to help grow my business.During our discussions, the broker informed me that the interest rate stated in the contract, which was an astronomical 50%, would not be the final rate I would pay. He assured me that he would refinance the loan for me promptly. However, about a week later, this broker was abruptly fired, and no one from ONDECK or Fundera was willing or able to assist me with the promised refinancing.The only solution I was offered was to waive the interest if I paid off the loan in full immediately. If I had the funds to do so, I would not have sought a loan in the first place. Despite my repeated attempts to negotiate the interest rate, I have found myself a victim of predatory lending practices. This experience has been deeply unsettling and financially damaging. The fact that a reputable company like ONDECK is involved in such practices is profoundly disappointing. I borrowed $100,000 and have been forced to pay $50,000 in interest. This kind of exploitation is unacceptable and goes against the principles of fair and ethical business practices.I requested an immediate review of my case and a fair resolution to this issue. Specifically, I am seeking a substantial reduction in the interest rate and a renegotiation of the loan terms to reflect what was initially promised to me.NO ONE HELPED! Stay away from them.

  Business response

  06/06/2024

  Thank you for allowing us to respond to ******************************* complaint. 
  
  On January 23, 2023, ********************** signed an operative agreement, with the loan amount of $105,000.00, an origination fee of $2,625.00, and an interest charge of 41 cents per dollar borrowed which converts to a total interest charge of $43,050.24. ************************ agreement gives the eligibility to receive a 25% discount on the remaining interest at payoff or a 100% interest waiver with a loan renewal.
   
  On March 27, 2023, ********************** called OnDecks customer support center to request a payoff letter, when given her payoff amount she was not in agreement with the amount provided and stated the sales agent at *********** advised her she would be getting a higher discount. At that time a complaint case was opened due to misleading or miscommunication on behalf of ************ 
  ********************** forwarded a copy of the text messages/email messages from the agent at ************ with the offers listed as follows;
  
  Option 1:
  Funded Amount: $105,000
   18 Months
   ACH-$1,912.00
   PB-$149,100
   EARLY PAYOFF-$111,825.00
   **25% Early Discount if the balance is satisfied within 3-9 months Remaining Interest Forgiven
   
  Option 2:
   Funded Amount: $95,000
  18 Months 
   ACH-$1,729.00
   PB-$134,9000
   EARLY PAYOFF-$101,175.00
   **25% Early Discount if the balance is satisfied within 3-9 months. Remaining Interest Forgiven
   
   Option 3:
   Funded Amount: $95,000
   15 Months
   ACH-$1,988.00
   PB-$129,200
  EARLY PAYOFF-$96,900
  **25% Early Discount if the balance is satisfied within 3-9 months Remaining Interest Forgiven
   
  Option 4:
  Funded Amount: $80,000
  15 Months 
   ACH-$1,674.00
   PB-$108,800
   EARLY PAYOFF-$81,000
   **25% Early Discount if the balance is satisfied within 3-9 months. Remaining Interest Forgiven
    
   Option 5:
  Funded Amount: $80,000
  12 Months 
   ACH-$2,000
   PB-$104,000
   EARLY PAYOFF-$98,000
   **25% Early Discount if the balance is satisfied within 3-9 months. Remaining Interest Forgiven 
  
  
  After a review of the information ********************** provided and communications with ************ OnDeck found that ********************** was given misinformation regarding her discounted amounts. OnDeck offered a resolution of a 100% interest waiver at the time of the payoff. On April 3, 2023, ********************** accepted the offer and requested a payoff letter to reflect this. On April 11, 2023, ********************** emailed our complaints department requesting to have her loan refinanced to include the offer of a 100% interest waiver. On April 13, 2023, ********************** was advised she was only 14% paid down on the current loan and was not eligible to do a refinance, however, once she reaches 30-33% paid down she would be eligible to apply for a refinance. Once she has reached the required paid-down ***** she will want to contact her OnDeck sales agent. ********************** then requested her payoff amount, as she would like to pay the loan off. She was given the payoff amount of $94,363.26 which was her principal balance as the remaining interest will be waived due to the resolution of her complaint. 
  
  On May 11, 2023, ********************** emailed again requesting her payoff amount, On May 12, 2023, OnDeck responded with her payoff amount of $90,219.21 excluding the remaining interest balance. 
  
  On May 24, 2023, ********************** sent an email expressing her disappointment with OnDeck, advised she would be writing negative reviews on the BBB website and reporting Ondeck to the government for fraud, stating her company is in the red because of the high-interest loan and the fact that she has received zero response from the OnDeck team. 
  
  There have been numerous amounts of emails and calls between ********************** and OnDeck, expressing her disappointments and legal threats, with the most recent email being received on June 1, 2024, requesting to refinance her loan, her disappointment with the resolution of her complaint from 2023, and the termination of the sales agent she worked with at ************ 
  *********************** was again advised to contact her OnDeck sales agent to review the refinance options as she is currently eligible to apply for refinancing. We also explained that the Sales Agent with ************ was not an employee of OnDeck and that OnDeck has no control over how ******** **** handles their disciplinary actions.
  
  Attached is a copy of ************************** Business Loan Agreement and email communications with **********************. OnDeck is as transparent as possible when we close on all of our loans regarding loan costs, including but not limited to interest expenses, and fees. 
  
  OnDeck is committed to providing the best possible experience to all our merchants. If ********************** has any other questions, or if we can support her in any way, she can contact OnDeck **************** directly at ************.

  All the best, 

  OnDeck 

  
  

• Initial Complaint

  05/13/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  "We're in the process of securing an SBA loan through *************** to settle our OnDeck loan and other obligations. Despite numerous requests, we're encountering difficulties in obtaining a payoff letter with a specific date from OnDeck."

  Business response

  05/20/2024

  Thank you for giving On Deck Capital, Inc. (OnDeck) the opportunity to respond to *********************** complaint. Weve received and reviewed **************** dispute dated May 13, 2024.
  

  From April 26 to May 13, 2024, ************** called our customer service center and requested a ****** payoff with a specific date. ************** was advised by several different agents that OnDeck does not give 10-day payoffs as his payoff amount changes weekly due to the weekly payment schedule he has. Also, OnDeck payoff letters are system-generated based on the weekly schedule. Each time ************** called to request the payoff letter, the request was processed. Unfortunately, we are not able to change the dates on the letter due to the payoff letter being system-generated. In the last communication with ************** on May 13, 2024, the OnDeck agent included a letter of explanation to state the dates he requested but the actual payoff letter again cannot be altered. We have attached the last payoff letter and the letter of explanation, submitted via email on May 13, 2024. OnDecks goal is to provide clear communication and if a training opportunity is recognized we will address that with the respective parties.
  

  Best regards, 
  OnDeck Final Resolution 
  

  
  

• Initial Complaint

  04/15/2024

  Complaint Type:

  Order Issues

  Status:

  Resolved

  More info

  In February, 2023, I was contacted by a very aggressive law firm, regarding a debt I owed to OnDeck in the amount of $4,300.47 for my business, ************************* Realty. That law firm, *****************************, offered me six installments to pay the debt off, beginning in February 2023 and ending in July of 2023. Even though I was making payments, they would continue to send me threatening emails. I paid the debt, in full, by the timeline of July, 2023. OnDeck sent me no release of any UCC liens, nor anything showing the debt was paid in full. Neither did *****************************, LLC. In April of 2024, I received an email from OnDeck, again threatening me for the same balance, claiming I hadn't paid it, and threatening to **** I have proof of all payments, and a signed copy of the agreement in which ***************************** LLC claims to represent OnDeck.

  Business response

  04/22/2024

  Thank you for allowing OnDeck to respond to ******************** complaint.OnDeck is committed to providing the best possible borrowing experience for our customers. We are truly sorry if we came up short of this goal.
  

  Upon receiving this complaint, OnDeck conducted an internal investigation regarding *** ******* situation. Our research indicates that *************** was sent an email notification in error. We have identified the issue and we are working to get this corrected however she should not receive any additional emails. We have also confirmed that the loan with OnDeck has been paid in full through a settlement offer with *****************************, LLC and there is currently no UCC lien on *** ******* business.In addition, our records reflect that we furnished, as of July 31, 2023, among other data points, that the loan's current balance was zero and the account is closed. We have included a transaction history report that reflects a zero balance as of July 27, 2023.
  

  If **************** would like to discuss this further she can contact our customer support team Monday-Friday from 9:30 a.m. 7:30 p.m. ET at **************.
  

  Sincerely,
  Ondeck Complaints and Disputes team

  Customer response

  04/25/2024

  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 and the matter has been resolved.
  
  Sincerely,
  
  *************************
  
  
  
   
  
  

• Initial Complaint

  04/10/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  This broker is a scam if only I had read about them before going into trade with them. ?? they keep telling me to deposit more of my funds.. After I read about them and concluded and decided to reach out to ***************** after I read so many reviews on how She has helped a lot of victims. Well, I am glad ***************** was able to help me recover my money. You can get in touch with HER on their company mail Email: harperjamesplatform @ gmail com

  Business response

  04/16/2024

  Hello, we can't seem to find an account in our system. Merchant can reach out to us at ****************************************** with the name and business name. We'd like to look into the complaint. Thank you.

• Initial Complaint

  03/22/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  This business has unfairly and unjustly denied my loan application after meeting all minimum requirements. They send me letters each time not telling me what the reason is for denial and asking. I contact them for the reason which I am doing now. Of course this firm will have an inquiry on my credit report bringing down my credit score yet again so I can use that as a pathetic excuse.

  Business response

  03/28/2024

  Thank you for allowing OnDeck to respond to ********************** complaint concerning his denied loan application with OnDeck.  Upon receiving this complaint, we completed a thorough investigation regarding his claims.
  

  Our research indicates that ******************** application was denied due to a derogatory history in Business Credit at the time of his loan application.  If ******************** has a discrepancy in the results of his credit reporting information, we suggest he reach out to the credit bureau to resolve any issues.
  

  OnDecks goal is to provide clear communication on any loan decision,and if a training opportunity is recognized we will address that with the appropriate parties.
  

  Although ************************ application was declined, he is welcome to reapply within 30 days of the decline. OnDeck is committed to providing the best possible borrowing experience for our customers. 
  

  Thank you. 

  Customer response

  03/29/2024

  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 and the matter has been resolved.
  
  Sincerely,
  
  *****************************
  
  
  
   
  
  

• Initial Complaint

  02/22/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  This is one of the scamming small business funding programs. They loan on your future income at an illegal interest but when your business slows down they do not adjust as they said. I told them I could not afford the weekly payment and they wanted double money in one year. We got slow I tried to make reasonable monthly payment they refused. They said they would adjust but they refused. SO really they are not doing a loan on receivables they are doing an illegal high interest loan. Now that our company is making way less than there payment they want to *** me in court and ruin my credit make threats and take our equipment needed to work.

  Business response

  03/04/2024

  Thank you for allowing us to respond to ***************** complaint.OnDeck is as transparent as possible when we close on all of our loans in regards to loan costs, including but not limited to payment structure, and interest expense on the loan.
  On or about January 6, 2023, ****************** applied for business credit through an independent third-party broker, **************, LLC.Based on the information contained in that application, ****************** was approved for a $105,000 loan from OnDecks banking partner, ************ On or about June 8, 2023, ****************** qualified to apply for a loan renewal. At that time the renewal application was received and reviewed by underwriting. Unfortunately, ***************** was not approved due to; the high-risk industry; his Personal Credit Score is on the lower end of our acceptable range the low volume of recent bank deposits. On June 23, 2023, ****************** revoked his ACH payments and started to fall behind on his payments. Because of this, collection activities started.OnDeck made offers of available payment assistance, which were not accepted by *****************. On October 2, 2023, *** ******** OnDeck account was written off for $79,052.84. In addition, *** ******** contract only offered weekly payments. Ultimately,we believe it's important for each small business owner to decide what type of financing is best suited for them.
  If ****************** would like to discuss this further, he can contact us at ****************************************** or **************.
  Sincere regards, 

• Initial Complaint

  12/29/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  On Deck continues to say that I have a bankruptcy on my credit and that's not true .

  Business response

  12/29/2023

  Thank you for allowing OnDeck to respond to ****************** complaint concerning his denied loan application with OnDeck.  Upon receiving this complaint, we reviewed our records about the situation.
  Our research indicates that **************** did not meet our minimum underwriting requirements at the time of his loan application.  If **************** has a discrepancy in the results of his credit reporting information we suggest he reach out to the credit bureau to resolve that issue.
  OnDecks goal is to provide clear communication on any loan decision, and if a training opportunity is recognized we will address that with the loan specialist.
  Although **************** did not meet our underwriting requirements at the time of his application, he is welcome to reapply within 30 days of the decline. OnDeck is committed to providing the best possible borrowing experience for our customers.  Thank you. 

*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. ↩