Lendmark Financial Services is a consumer finance company based in Lawrenceville, Georgia. The company was organized in 1996 as a First Liberty Bank of Macon, GA subsidiary. In the summer of 2000, First Liberty Bank and its subsidiaries (including Lendmark) were acquired by Branch Banking and Trust Company (BB&T) of Winston-Salem, NC. BB&T sold Lendmark to private equity firm Blackstone in the fall of 2013.
What is Lendmark Financial Services?
Lendmark is a legitimate lender headquartered at 1735 N. Brown Road, Suite 300 Lawrenceville, GA 30043. The company has over 500 branches nationwide, including 53 in North Carolina. According to their website, Lendmark typically lends to Americans with credit scores in the 580-680 range. The typical rate for those loans is 18% – 36%, and consumers usually use their services for “event-driven” needs. This includes home improvement, auto repairs, medical expenses, and life events.
What Are the Interest Rates at Lendmark?
Lendmark Financial does not display interest rates on its website. To get an estimation of interest rate, monthly payment, and other pertinent details, you must fill out their website form or speak to a representative. Lendmark offers loans ranging from $500 to $25,000; however, any loan exceeding $8,000 necessitates collateral.
A 2022 report from Lendmark’s corporate site notes 91 complaints to the Consumer Financial Protection Bureau. In addition to those, we’ve assembled the top complaints across multiple channels.
Improper Credit Reporting
Consumer reports such as credit reports and background checks have assumed a vital role in the average American’s life. For that reason, a consumer’s information must be fairly reported, accurate, and secure. Several Lendmark customers have complained the company’s behavior violated the Fair Credit Reporting Act (FCRA), a landmark legislation that regulates reports containing consumer information.
Several complaints on Lendmark’s Better Business Bureau (BBB) profile allege the company fails to remove inaccuracies from a consumer records. Under the FCRA, consumers are entitled to dispute information, and companies must comply with the request. The company and credit reporting agency are ordered to investigate the claim and communicate the investigation results. In one lawsuit, the borrower alleged that Lendmark wrongfully reported a $3,000 past-due balance to Experian. The consumer declared bankruptcy, and the debt could no longer appear on their credit report. The suit asserts that Lendmark willfully ignored the consumer’s requests for investigation and continued to report the inaccurate information.
Servicemembers Civil Relief Act (SCRA) Violations
The SCRA provides added consumer protections for active duty servicemembers to ensure their livelihoods are secure while they serve the nation. An important aspect of this act is a reduced interest rate on certain loans. Those on active duty may send a written request to their lenders for a reduction of their annual rate of interest to 6%. A Florida lawsuit alleges a consumer sent multiple written requests for the reduced interest rate each time Lendmark rejected the requests. In this case, the lender cannot deny those requests under the SCRA.
Lendmark has faced lawsuits and complaints regarding its aggressive collection tactics. Several consumers claim the agency called more than three times a day, placed calls to their employers, and ignored requests to stop calling. Complainants also allege Lendmark placed many of these harassing calls to their employers.
State and federal laws shield consumers from harassment. The Telephone Consumer Protection Act (TCPA) and the Fair Debt Collection Practices Act (FDCPA) restrict the hours, manner, and frequency with which collectors or other businesses may call you. Read more about the TCPA and FDCPA on our consumer rights pages here.
Other Potential Issues
Employees and former employees on sites such as Glassdoor and Indeed report a pattern of consumer harassment from the top down. Several reviews allege upper management places incentives on trapping consumers in a vicious cycle of debt. Others claim Lendmark charges interest rates that violate state consumer law.
Different authorities regulate “Banks” and “Non-Bank Financial INstitutions” in North Carolina. Banks in North Carolina are regulated by the Office of the Commissioner of Banks (NCCOB), responsible for chartering and supervising state banks, trust companies, and non-depository trust companies. Lendmark is not a chartered North Carolina bank- it is a financial institution.
Financial institutions not chartered by the NCCOB are subject to a different maximum interest rate for personal loans less than $25,000. Specifically, a lender may not charge an interest rate higher than 16%, regardless of an individual’s credit score or other personal factors.
Maginnis Howard’s consumer protection attorneys are passionate about holding companies that violate consumer law accountable. If you believe your rights have been violated by Lendmark or any other large company, contact us today.
Our firm has three conveniently located offices in Raleigh, Charlotte, and Fayetteville. For information on each branch, visit the Locations tab in the navigation menu. To reach an intake specialist, visit our contact page or submit a chat through our Live Chat feature. You may also call us at (919) 526-0450. Our Raleigh office handles most consumer cases, but we accept clients from across the state.