Complaints

This profile includes complaints for On Deck Capital, Inc.'s headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  On Deck Capital, Inc.

  1400 Broadway 25th Floor New York, NY 10018-5225

  
• 

  On Deck Capital, Inc

  901 North Stuart, Suite 700 Arlington, VA 22203

  
• 

  On Deck Capital, Inc.

  999 18th St STE 1200N Denver, CO 80202-2499

• 

  On Deck Capital, Inc.

  4700 W. Daybreak Pkwy. Suite 200 South Jordan, UT 84009

• 

  On Deck Capital, Inc.

  2711 Jefferson Davis Highway Suite 333 Arlington, VA 22202-4015

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:05/28/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Dear OnDeck Capital,I am writing to file a formal complaint regarding what I consider a predatory and deceptive action on your part concerning my line of credit under Loan #****************.Your platform explicitly states that auto-payments are due on the 26th of every month. Based on this, I strategically waited until after the May 26th payment date had passed before making a new draw on May 27, 2025.Despite this, OnDeck withdrew $1,101.38 from my account the very next day, May 28theffectively charging me a new interest payment less than 24 hours after the draw.This is unacceptable and predatory. It violates the implied structure of a monthly billing cycle and penalizes responsible financial behavior. Nowhere was it disclosed that a new draw would trigger an immediate auto-payment, especially when the most recent due date had just passed.The standard expectationbased on my prior experience with your serviceis that I would receive an interest-free ***** period until the next cycle, not an instant charge the following morning.I am demanding the following:A full reversal of the May 28th auto-payment, or a clear and justified credit toward the next billing cycle.A written clarification of your billing policy and whether future draws will trigger similar auto-debits regardless of stated due dates.Assurance that OnDeck will no longer manipulate payment timing in a way that targets customers immediately following their scheduled due dates.If this issue is not resolved, I will escalate this matter to the ************************************ and consider additional remedies. I expect a prompt and fair response.

  Business Response

  Date: 06/12/2025

  Thank you for giving On Deck Capital, Inc. (OnDeck) the opportunity to respond to ******* **** complaint. Weve received and reviewed *** **** dispute dated May 28, 2025.
  
  After an internal investigation of the account, ********************** found that a payment of $1,101.38 was incorrectly debited on May 28, 2025, due to a system error. Our tech support team was made aware of the issue and have been resolved. A refund for the full payment amount was issued on June 5, 2025. The dispute has been resolved. We truly apologize for the inconveniences this matter has caused. 
  
  If you have any further questions or need assistance, please feel free to reply to this email, reach us at ******************************************* or call us at **************.
  
  Sincerely,
  
  ******** ******* **** ******************************************************************** ** ************** * ** **************

• Initial Complaint

  Date:05/16/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  OnDeck repsresents itself as a lender to regular people and regular businesses. However, they are predatory. They gave us a term loan at 50 percent interest and a line of credit at 50 percent interest. These are predatory lending practices. They represent that they are a company that can help business and people, but they are a predatory lender.

  Business Response

  Date: 06/02/2025

  Thank you for giving us the opportunity to respond to ***** *********** complaint.
  

  At OnDeck, we strive to be as transparent as possible when we close on all of our lines of credit. This includes providing clear information about the cost of credit, which encompasses the Annual Percentage Rate (APR), the total dollar cost of financing, and the estimated payment amounts.
  

  As noted in our supplemental information, OnDeck calculates the APR based on the principles outlined in 12 C.F.R. 1026 (Regulation Z). The APR represents the cost of financing expressed as a yearly rate. It takes into account the amount and timing of the funding received, the interest and fees you pay, and the payments you make. It's important to note that APR is not the same as an interest rate; rather, it is an annualized rate that may be higher than the interest rate because it includes interest costs and other finance charges.
  

  Finally, we want to emphasize that OnDeck does not engage in or support predatory lending practices.
  

  If *** *********** needs a copy of his Business Loan and Security Agreement, he is more than welcome to call **************** at **************.
  

  
  

  Customer Answer

  Date: 06/03/2025

  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:

  Charging over 50 percent interest is absolutely predatory - so to say that this is not predatory lending is categorically false. Who charges over 50 percent interest?? PREDATORY LENDERS like ondeck - these were unreasonable interest rates that set this all up to fail. How do you all get away with charging predatory interest rates like that??? Your company is digusting and your predatory behavior is abhorrent. Stop sending lies

   

   

   

   

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

  
  Sincerely,
  
  *****
  
  
  
  
   
  

• Initial Complaint

  Date:05/08/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  This company implements deceptive sales tactics that ultimately led me to take out a loan with them. Based on some of the other complaints I see, I'm certainly not the first ****** to have this experience and it also appears they have never been held accountable either. It actually appears that they may have exceeded the maximum APR and origination fee the ** permits under the law. I have my legal team looking at this right now. They could never get anyone to take out a loan if they advertised their rates in plain site so they use misleading and predatory tactics to convince people believe they are getting a lower rate. I've tried reaching them numerous times to seek a resolution but after they get you to sign a contract they couldn't possibly care less about helping you. I'm just simply being ignored which has led me to file a complaint with the BBB, hoping it will prompt a response.

  Business Response

  Date: 05/28/2025

  Thank you for allowing us to respond to ******* ******** complaint submitted May 14, 2025.
  
  According to *** ******** complaint, he is alleging the annual percentage rate (APR) associated with the Business Loan and Security Agreement Supplement (****) extended to Design by *************. (Design by ****) by ODK Capital, LLC (OnDeck) exceeds the maximum APR and origination fees permitted under North Carolina laws. He also alleges that 
  OnDeck practices misleading and predatory tactics. He is demanding a billing adjustment as a resolution.
  
  OnDecks interest rates comply with applicable law and OnDeck appropriately disclosed the APR to Design by **** before the execution of the **** agreement. For that reason, the **** with Design by **** was enforceable. 
  
  On April 21, 2025, *** ******** acting on behalf of Design by ************ and in his personal capacity as a guarantor, executed the Business Loan and Credit Agreement (BLCA). By signing this agreement, both Design by ************ and *** ******* confirmed that they had received a copy of the agreement, had read and understood it, and agreed to be bound by its terms, as stated in Section 51 of the ********************* Agreement (****). Within 24 business hours, Design by ************ received an advance of $12,480.00, which was subsequently deposited into the designated business bank account on record. 
  
  On April 30, 2025, *** ******* requested the payoff balance, which was emailed to him. He also submitted a direct complaint, claiming that the **** did not reflect the terms he had agreed to over the phone. This claim was found to be unfounded and was addressed in a resolution email sent on May 8, 2025. On May 9, 2025, a full payoff was received and applied to his account, resulting in its closure. 
  
  It is important to note that there is no usury defense or claim for usury regarding corporations, partnerships, LLCs, LLPs, and other commercial entities in *************** as long as the loan is not for personal, family, or household purposes. The usury limitations stated in section 19.52.020 do not apply to commercial loans. Moreover, the loan is governed by Utah law, not North Carolina law, and under a choice of law analysis, Utah law applies. Additionally, OnDeck does not support and will not engage in misleading or predatory lending practices.
  
  If *** ******* needs a copy of his  Business Loan and Security Agreement, or has additional questions or concerns, he can contact us at ****************************************** or call **************** at **************.
  

• Initial Complaint

  Date:01/29/2025

  Type:Sales and Advertising Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I had a loan with OnDeck and had auto payments coming from my bank account. On Dec 18, 2024 that account got hacked and the bank froze my account. I notified ********************** on the same day and on Dec 19th, submitted requested documentation, a new ACH form and a letter from the bank on bank letterhead verifying the new account and routing number. ********************** continued drafting my old account. I notified them each week up to and including Jan 6th and advised them that payment will clear, but the bank closed the account permanently and no more payments will clear. This was the 3rd time I was assured the account was fixed and payments will come from the new account. ********************** continued trying to draft the old account, then started harassing me about late payments via phone and email, threatened me with a charge off and litigation. I finally got someone on the phone who actually fixed the account but assured me that there would be no late fees, additional interest or penalty. Today Jan 27, 2025, (40 days later), my new account finally got drafted and OnDeck took out an additional $41.16. I have no idea if they are calling this late fees or additional interest, but under the circumstances it is so wrong. I Have answered every single email and phone call and submitted the requested documents several times. It is not my fault that they cannot get their act together. This has been a nightmare to deal with.

  Business Response

  Date: 01/31/2025

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

  We have had an opportunity to review the requests made to OnDeck on December 19, 2024. Our investigation reflects the following:
  

  On December 19, 2024, *** ****** spoke with Ondeck **************** and made the following request:
  

  Bank account change- *** ****** requested to have her bank account on file with ********************** updated because the account was frozen due to fraudulent activity. At that time *** ****** was advised to complete an *** authorization form and provide a bank statement or bank letter including the company name, the full routing number, and the new account number.
  

  An email was sent to *** ****** confirming the bank account change request including the *** authorization form to be returned for confirmation as well as a list of required documents. *** ****** submitted the signed *** authorization and a bank letter. The *** form was returned with incorrect information, OnDeck replied informing the merchant the company name needed to be on the *** form, not her name and the tax ID number did not match what was on file.
  

  On January 3, 2025, Ondeck **************** reached out to *** ****** again as we had not received the form reflecting the correct tax ID number. She responded on January 9, 2025, with the corrected information.Ondeck then reached out to the merchant on January 23, 2025, to request an updated bank letter as the one received in December was outdated.
  

  To stay in compliance with our policies and procedures that are in place, OnDeck was unable to complete *** ******* request until we received the required documents to process the update.
  

  However, we do recognize there were some missed opportunities. There were some delays in reaching out to *** ****** to request corrected information after no response initially. Due to the delays,on January 28, 2025, we refunded *** ****** $41.16 for the additional interest charged because of the missed payments, and her bank account has been updated.We have provided coaching to the appropriate parties to ensure these requests are processed promptly going forward. OnDeck sincerely apologizes for the inconvenience this has caused *** ******.
  

  If *** ****** has any additional questions she is more than welcome to contact OnDeck **************** at ************** or by email at ********************************************************************.
  

  Sincerely,
  ******* *
  OnDeck Complaints specialist 

  Customer Answer

  Date: 02/03/2025

  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. However, I am disappointed that the blame has shifted back to me. From Dec 19th until Jan 3rd, nothing happened. OnDeck was not even aware of the mistakes on the *** form until I called and inquired why the old account was still being drafted. I sent the correct information and again the old account continued being drafted. I never received a request for an updated bank letter. I felt as though I was begging you to take my money - for 40 days, and then I got charged additional interest, and threatened with a charge off and litigation. However, now the account has been corrected and the additional interest refunded, so I am content to close this complaint. I just feel as thought I have been thrown under the bus and do not appreciate it one bit. 
  
  Sincerely,
  
  ***** ******
  
  
  
   
  
  

• Initial Complaint

  Date:12/20/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I reviewed my Consumer Reports and noticed that there was an inaccurate account(s) on my credit report ONDECK CAP: ************************************************* have assumed a vital role and have a responsibility to report Consumer information to the best of their ability with maximum accuracy.I contacted ********** and asked for them to investigate & remove the inaccurate account from my consumer report that they are illegally reporting and I requested specifically the alleged original application bearing my signature and they have not been able to provide such proof to me.This is a violation of the Fair Credit Reporting Act, and these disputed items may not appear on my credit report if they can't be verified by any evidence or proof.

  Business Response

  Date: 01/02/2025

  --Thank you for allowing On Deck Capital, Inc. to respond to ******* ********** complaint.
  
  Upon receiving this complaint, OnDeck conducted an internal investigation regarding ******* ******** THIS A ******** applied for and received an OnDeck Capital, **** loan (Loan) in the amount of $9,000.00.  ******* ******** applied on behalf of THIS ********** for the Loan as partial or full owner of THIS **********, and as such had authority to take out the Loan. On, or about, August 11, 2023,  ******* ******** personally signed the operative loan agreement in your individual capacity as personal guarantor guaranteeing any, and all, Loan repayment obligations of THIS A *********
  
  On, or about, December 25, 2023, THIS A ******** began falling behind on required payments and therefore the Loan fell into default. A letter was sent advising that we intended to furnish data pertaining to the Loan on their consumer credit file unless the Loan default was cured. Thereafter, we furnished data to Transunion, which included data pertaining to the Loan on your consumer credit file. Our records reflect that we furnished, as of November 29, 2024, among other data points, that your Loan amount past due was $7294.03 and that your Loan current balance was $7294.03. OnDeck does recognize that you have agreed to a settlement amount and an installment plan with our Payment Support Team. Each payment successfully processed will be reflected in our normal monthly credit reporting cycles. ******* ******** has been sent a copy of their Business Loan and Security Agreement in separate communications.
   
  Thank you.

• Initial Complaint

  Date:11/26/2024

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  De'Lylah's Hair and Body received a loan from On Deck back in April of 2024, I believe. Currently we are paying roughly $1,000 a week on the loan principal and interest. I have been in contact with the *** via text, email asking what the payoff amount for my loan is for nearly 2 months now and can not get a straight answer. I have emailed the company's website and called been placed on hold, disconnected, speak with someone who is untrained and doesn't speak English very well. I would like to get a payoff amount. When I took out the loan the *** said there is no penalty of paying off the loan early and would like to do so. Their website only shows the amount I have paid already and the amount owed if I were to pay monthly for the entirety of the loan timeframe. I want to pay off this loan and be done with this company but their communication is extremely poor and only try to get more loans in so that they can continue to collect large amounts of interest. Their customer service is extremely poor as they tell you something to get you to accept a loan but then give you the run around on the loan amount.

  Business Response

  Date: 11/29/2024

  Thank you for allowing On Deck Capital, Inc. to respond to ****** ******** complaint.

  Upon receiving this complaint, OnDeck conducted an internal investigation regarding *** ******** claims. During the review of the account, we were unable to locate any emails or phone calls to OnDeck from ********** regarding her payoff. Additionally, Ondeck does not communicate via text messages regarding the account details. We appreciate you bringing this matter to our attention.  We will be more than happy to provide *** ******* with her payoff information, *** ******* is welcome to contact our **************** team at ************** to discuss further regarding this situation. 

  Thank you.

  Customer Answer

  Date: 12/11/2024

  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:

  [Your Answer Here]

   The business is untruthful and continues to give me the run around.....even in their simple response via the BBB of call their ***** #.  Example of one of the many emails I have sent them below:

  ****** ******* ********************************* **** *** *** ******** *** ******* ***** *** ****** **** ** * ****** ******* * ***** **** ** **** ** ****** ****** *** ***** *** ****** ** ******* ** **** * ******* **** * *** *** *** * *** ** *** ***** ****** **** ********* * **** **** ** *** **** *** ** *******  ****** ******* *****  ********* **** * ****   ****** ******* ********************************* **** *** *** ******* ** ****** ******  * ***** **** ** *** ** *** *** ****** ** ** ******* ***** ****** *******  *****  ********* **** * ****  ****** ***** ************************************************************* **** *** *** ******* ** ** *** *** *** ** *** **** *************** ** *************** *******   ***** ***** ****** ******** ******* *******  *********************************************************** **  **************

  Texts were sent 9/16/24 at 2:15pm MST left on read and zero response until a new text was sent 12/6/24 asking if I needed more funding to **************************.  Conversation over text happened however no resolution or actual assistance.  I have attempted to call and everyone there is useless and just tries to offer you more money and will not give me a straight answer.

  I have been asking for a payoff # for months now and this business will not give me a straight answer and On Deck/******* just tries to offer me more money to take out.  Probably have been getting the run around for their *** to expire as I have clear documentation asking to payoff this loan prior to that yet On Deck would not provide me the information.  I want the exact payoff amount to be done with organization as it clearly lacks customer service, and they just provide a loan and give people the run around so On Deck/******* can collect all of the interest on the loan instead of allowing people to actual payoff the loan early.  

   

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

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

  Business Response

  Date: 12/31/2024

  Thank you for allowing On Deck Capital, Inc. to respond to ****** ******** complaint.

  
   Thank you for your recent communication with OnDeck. We apologize for the delayed response. We do understand you are not satisfied with the findings of your complaint. Ondeck does not communicate via text messages regarding the account details. We will be more than happy to provide *** ******* with her payoff information, *** ******* is welcome to contact our **************** team at ************** to discuss further regarding this situation.

• Initial Complaint

  Date:10/30/2024

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I got a business loan from On Deck Capital was told I could refinance to lower my payments from once a week of *********************************************************************************************************** this cycle of having to consistently borrow to pay off loan after loan when I tell the I no longer want to get another loan I just want to pay off this loan they put me off another month or don't return my calls at all but are still taking money from my account every week instead on letting me make arrangements to pay it off like they said I could soon as one of the sales *** call to offer another loan I tell them I don't wa t another loan just to pay it off they don't call back or respond when I call.

  Business Response

  Date: 11/04/2024

  Thank you for allowing On Deck to respond to ********** ******* complaint.
  

  After a thorough investigation of *** ****** claims, we were unable to determine any miscommunication on behalf of our agents, ******** has not been offered more funds by Ondeck, and we found no communication between *** ***** and her OnDeck account manager. *** ***** is currently at 25%paid down and has been active for a little over 3 months with her current loan,it is required to be at least 45% paid down or at 6 months to be eligible for refinancing, therefore no one would be reaching out to her to offer her more money or a new loan as she is not eligible at this time. However, we have found that new applications have been submitted via 3rd party websites and the applications were declined due to *** ***** already having an active loan with OnDeck. *** ******* agreement reflects a loan amount of $100,000.00, a total cost of capital of $40,300.16,and is contracted for weekly payments at $2,698.08 via ACH for a full repayment of $140,300.16. She does qualify for a 25% interest reduction on any remaining interest if she wants to do an early payoff in full. In addition, *** ***** can contact the OnDeck payment support team at ************ if she needs payment assistance or payment arrangements.
  

  We have included a copy of the Business Loan and Security Agreement for your records.
  

  If *** ***** has any further questions OnDeck **************** is available at **************, or ********************************************************************.

  Thanks, 

  OnDeck 

• Initial Complaint

  Date:09/10/2024

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am not liable for this account with ************************* I don't have any contract with this collection agency,they did not provide me with original contact I requested.

  Business Response

  Date: 09/17/2024

  Thank you for allowing OnDeck to respond to ****** *****. We have been able to locate an account in our database for ****** *****.
  

  Our records reflects ****** ******* Line of Credit originated on March 30, 2022, for a total payback amount of $12,165.13. ****** ***** defaulted on the Line of Credit by not making payments as required. Numerous attempts made to work with ****** ***** to resume a paying relationship were unsuccessful, with the last attempt being in April 2023. After default, the account was written off, and as such the full balance of $ ******** remains due and owing.Furthermore, on or about, May 9, 2023, the defaulted loan was transferred to ********************************** for servicing. ****** ***** can reach them at *************.
  

  We have included a copy of the Line of Credit agreement and the transaction history for your records.
  

  Thank you,

  OnDeck Complaints Team

• Initial Complaint

  Date:08/12/2024

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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

  Date:08/05/2024

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date: 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.