CitiFinancial
Motorcycle Loan Stretched to 14 Years After Military Rate Cut

On June 18th of 2002, I purchased a 2002 Honda Shadow motorcycle from a local dealer for $6,362 and financed it through Citifinancial in Lima, Ohio. The loan was at a high 21% for 5 years. The payments were $175 a month for 60 months. I paid the $175 a month on time for 9 months before being called to active duty in the military as an Army Reservist.

At that point, on 15 March, by federal law all loans with all my creditors had to go to a 6% rate while I was deployed. Every creditor complied. Citifinancial was the only one that did not want to do this. My wife, however, works for a local law firm, which sent Citifinancial in Lima a letter explaining that they would do it or else. Citifinancial then sent my wife a letter stating they were sorry for the mix-up and that they would be willing to extend the 6% for 6 additional months after I return before going back to 21%.

Now my wife and I are buying a home. We wish to pay off the Citifinancial motorcycle loan. But it turns out that after 22 months of paying on the loan, Citifinancial wants $7,750 to pay it off! Mind you, the original loan was $6,362. Also, you should know that at 6% my payments were $54. So we doubled the payments for the last 13 months while I was gone and paid $108 to help bring the loan down.

It turns out that when Citifinancial lowered the interest to 6%, they extended my loan out to 14 years so they could still get their money. I had a signed legal sales contract and a signed legal finance contract for a 5-year loan, not 14 years.

Citifinancial is a scamming, fraudulent, deceptive, fly-by-night company. I am currently seeking legal action even though I am not home yet from deployment. What kind of company would treat its U.S. military service members so badly while we are away serving our country? I cannot believe their lack of concern for federal law. Whatever happened to "Truth in Lending"? This company needs its license revoked for such practices of deception, fraud, and violations of federal law.

The JAG office where I am currently deployed is taking action against this company. Do not use Citifinancial for anything!

Company: CitiFinancial
Country: USA
State: Ohio
City: Lima
Address: PO Box 1048
Phone: 4192255065

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