Total Card Inc. Yamaha Motor Finance - Yamaha Finanncial Services Preditory and dishonest lending practices Sioux Falls South Dakota

 I’m writing in regards to the extreme predatory lending practices used by Total Card Inc. under the name of Yamaha Financial Services and/or Yamaha Motor Finance . I recently purchased a new wave runner from Riva in Pompano Beach Florida. As I expected, the product is excellent, the dealership experience was entirely adequate and the terms of financing were well below market as attributed to the fact that the wave runner was last years model. I financed my purchase through the dealer using Yamaha Financial Services also referred to as Yamaha Motor Finance in the financing agreement papers and on the letterhead of their correspondence. What I didn’t know was that I was really financing through a company called Total Card Inc. that had just entered into an agreement with Yamaha in late 2016 and that who also supplies financing services for hundreds of other generally smaller companies who wish to offer their customers low or free financing to positively impact sales. Unfortunately this credit company is also known for predatory lending practices (late fees, penalty fees, and legal fees at a level well above the typical lender). A web search for “complaints and lawsuits against Total Card Inc” returned over 2 million responses. This company is located in one of the most lender friendly states, South Dakota, and is taking full advantage of their minimal consumer protection laws. After paying approximately 25% down, I was approved for financing the total of the remaining balance (about $8,000) for 3 years, interest free.

An attractive rate indeed, but as I found out later this would turn out to be a very expensive loan. I set payments up with my bank paying a large amount (several thousand dollars up front) to Yamaha Motor Finance leaving a balance of approximately $3,500 and a monthly payment of $96.51 to pay off monthly for the remaining 3 year term of the loan which was totally interest free. All payments were to arrive before the 4 day of the current month. After 3 monthly payments, I received my first billing statement in the mail for the July 2017 billing. Statements were never received for previous months I learned one of my previous payments had been late and that I had been assessed an additional $25 late fee. I talked with a representative and explained that the my bank stated that all payment had arrived before the 4th of each month so I didn’t see how any could be late. She explained that the banks have no idea when the payments actually arrive at their final destination (they just know when they are mailed) and the only way to guarantee “on time” payments was to supply her my check routing and account numbers and authorize the company to access payments when they are due.

She then offered to cancel the $25 late fee. I thanked her for canceling the late fee, said I was not comfortable giving her access to my checking account and I would have my bank send the payments a little earlier in the future. The July payment wasthen made several days earilier In August, approximately one month later I started getting several calls a day (from what I eventually found out was Total Card). When I’d return their calls there was no indication of what card was being referenced to, only the choice to speak to someone about my “credit card. When I asked them what card they were calling about, they would mention names of credit cards I’d never heard of so I would eventually end the call thinking this was some sort of scam to get information or sell me a credit card.

Finally after several days someone mentioned Yamaha and after I verified my idenity they also mentioned that my latest payment was not late but it was $0.49 short and that to take care of this matter I would have to make a $5.00 payment (which is the minium payment accepted) and pay an additional $25.00 fee for making a late or in this case an incomplete payment. I was also told that I’d already benefited from one penalty fee forgiveness and would not be taking advantage of their generosity again. At the time I didn’t have my bank account records at hand however since that time I have noticed that the payment made in July was $96.51 which is the same as I’ve always made so I’m not quite sure why my bill was $0.49 short. No doubt some kind of penalty or interest fee they tacked on without my knowledge. At this point I lost my temper, but did manage to refrain from using out and out swear words. I did however mentioned what I thought of their honesty, integrity, and business methods in a very insulting manor. The lady I was talking with quickly put on her supervisor who asked me if I had just threatened them with legal action. I didn’t reply directly to that question but told the supervisor I had made an offer to pay this loan off if they could take the current penalty fee off .

She said she would relay that message when she referred this mater to their legal department before we ended the call. This is where the matter now lies and I can only imagine (by the “OK mister you asked for it” tone in that supervising customer clerk’s voice that I haven’t seen anything yet when it comes to extra fines and legal fees. For Yamaha to tarnish their reputation by teaming up with a company like Total Card Inc. to offer low interest or free interest loans in their name seems to makes no sense to me. Like other industrial giants with quality products, they should service their own loans or at least see that they are serviced by a quality lender with a reputation for fair dealings that doesn’t have to generate income by declaring payments late even when mailed on time by the bank or assessing extra fees without the client knowledge and then assessing them incomplete payment fees for not including it in the current payment, They should also send regular monthly billing statements unless specifically requested by the borrower not to. These are things any quality lender would do: but not Total Card Inc. located in the lender friendly state of South Dakota where checks sent by out of state banks get delayed in the mail and billing statements sent by in-state lenders tend to disappear.