Balboa Capital — predatory fraudulent loan
Customer No: 161229
Lease No: [protected]
To Whom It May Concern
My Name is Dr. Mehran Tavakoli, and I have two offices in Portland, OR and Vancouver, WA. About 4 months ago, I decided to upgrade one of my medical lasers at my office through a vendor ( Cutera, Inc. Pleasanton, CA) towards the end of March 2016.
Since I knew that gettinga loan for almost $78K would be a lengthy process through my own bank, I decided to explore financing options put forward to me through Cutera Inc. They offered a company to me called Balboa Capital, which i was not familiar with. They assured that this is a good company to work with, and they have favorable terms. The contract I was presented was a copy that had been copied multiple times with illegible very fine print. I ; therefore, relied on the promise and the explanation of Cutera sales rep to explain. Here is what I was presented:
1. The term of the agreement is a 5 year lease with a $1 buy out.
2. The APR is 8%.
3. At the end of one year, it is possible to pay off the balance of the loan without any extra penalty or interest on the balance of the loan. Basically at one year I could make a balloon payment and buy it out with just one year of interest payment on the total principal.
4. The initial 3 months of the loan would be $0 per month, and payments would start from month 4.
About two months into the loan I realaized that this whole thing has been a very deceptive scheme, probably plotted by Cutera to make a fast sale, and with big collaboration form a bunch of dishonest loan sharks called Balboa Capital.
Here is what I found out:
1. Customer service is almost non existent. I called and emailed multiple times. Out of every 3-4 times trying to reach them, they would just answer very briefly to the effect of " no...we can't do that...or some other sort of denial. My biggest concern was that at 2 months, I had enough money to make a big balloon payment. A person that sounded Hispanic on the phone ( after many unsuccessful phone calls) told me that it's not the way they work. They do not accept balloon payments, as this is not a "run of the mill" typical loan! Then, what kind of loan is it???
They do not clarify (even after formally requesting it) to break down how much of the payment is the principal and how much is the interest!
2. They are asking that if I wanted to make a balloon payment, I had to pay the entire 60 months worth of the loan and interest payment AGAINST our initial agreement.
3. They do not even honor paying just one year of interest at the first anniversary of the loan, plus the balance of the principal to buy out. After many phone calls and threats of lawsuit, they are now offering a "discounted interest rate for the balance of the loan plus the remaining principal". This was NOT my agreement with them. They are not supposed to charge ANY interest at the first anniversary buy out on the balance of the principal.
4. Despite many requests to clarify how much of each installment is athe principal and how much of it is the loan, they refuse to clarify. My guess is that they want to interpret the first year of the payment as "ONLY INTEREST".
5. With the current scheme they came up with, I would be paying close to 12% PAR for the first year if I want to buy out at 1 year. This is while my credit score is 800, and I could otherwise get the best types of SBA loans.
6. They have a clause in the contract that would ask me to either provide property insurance on the machine or they charge me insurance on top of the loan payments. Despite multiple contacts with them, forwarding my insurance documents and the endorsement to them, and even having my insurance agent contact them directly, they are making it impossible to use my own insurance. Basically they want me to pay an extra amount of insurance to them regardless of what method I use to prove I have adequate insurance and endorsements on the equipment.
7. After much back and forth with Cutera and Balboa, they sent me an addendum to sign with VERY VAGUE language they could take advantage of WITHOUT ANY SOLID numbers or rates presented. Basically they want to deceive me again with being very vague on purpose.
I am really sick of this company and it's corrupt abusive practices. I realized there are many unsatisfied people that have taken loans from them, and I would like to get a fair closure on this.
I would like to have the option of buying out at the end of the one year loan, with clear numbers ( principal plus interest monthly payments), with the originally agreed 8% APR only for the 1st. year of the loan, and buy out the balance of my principal at no interest ( as originally agreed) at the first anniversary of my loan. I would also like them to provide clear reasons why they keep rejecting my documentation of adequate property insurance coverage with endorsement to them. They will need to stop withdrawing "insurance" fees from my account.
Dr. Mehran Tavakoli
CC: California Chamber of Commerce, BBB, office of California DA
More Balboa Capital Complaints & Reviews
- Balboa Capital - beware of scam!
- Balboa Capital - not honoring buy out
- Balboa Capital - lied about $1 buy out
- Balboa Capital - high fees
- Balboa Capital - lied about $1 buyout and extra charge
- Balboa Capital - conmen
- Balboa Capital - no honoring 10% buyout
- Balboa Capital - equipment lease
- Balboa Capital - leasing
- Balboa Capital - sales call