Did Symple Lending send you a mailer resembling a check that claims to prequalify you for a loan of up $35,000 with a 5.95% interest rate (similar to the one below)?

They suggest that this loan will help you reduce your monthly payment by half, saving you $700 per month or $8,400 a year.

However, after applying, did you also get rejected for the loan but approved for a debt consolidation program (aka debt relief / debt settlement)?

If situation happened to you, or you’d like to learn more about Symple Lending as a company and their trustworthiness, we’ll cover all of that in this article. 

What is Symple Lending?

Symple Lending History

After doing some research online, we’ve discovered that Symple lending markets themselves as a financial services company that offers “Low-interest personal loans that get you back on your feet financially in as little as two days”. We can see that they operate two websites: symplelending.com and mysympleloan.com. Both websites were created quite recently, with symplelending being registered on 12/14/2020 and mysympleloan being registered on 2/28/2021. 

The fine text at the bottom of both websites state: “Symple Lending, LLC is a Utah licensed lender under the Utah Department of Financial Institutions Personal loan offers provided to customers who originated via a paid Google or Bing advertisement feature rate quotes on Symple Lending of no greater than 35.99% APR with terms from 61 days to 180 months.”Immediately, we can see that Symple Lending mailers have a large discrepancy with what is advertised on their website and online ads. The mailers claim an APR of 5.95% – 24% depending on state, much less than what is written on their website. 

Furthermore, the business itself was started on 1/6/2021 and based on the Better Business Bureau, their operations seem to be headquartered out of the following address: 535 Anton Blvd Ste 850, Costa Mesa, CA 92626-7062. However, on their instagram and google maps page, the address of the business is listed as 1821 E Dyer Rd Suite 210, Santa Ana, California 92705. But after checking compstack.com, we were unable to find Symple Lending being registered as a tenant for either buildings. 

However, in the 1821 East Dyer Road address, there is a debt consolidation company. Although they are not the same business entity as Symple Lending, the two companies do share close ties and a history spanning several years. More specifically, they were joint defendants in a court case filed on 12/17/21 against DMB Financial, a debt settlement company. 

The case originated because Symple Finance “refused to honor its agreement to act as DMB’s exclusive marketing agent.” It is also stated in the case that “Beyond [Finance] has a business relationship with Symple [Lending] that may be impacted by rulings made in connection with this action.” Based on this information, not only can we extrapolate that Symple Lending and Beyond Finance share a business relationship, but that Symple Lending also acts as a marketing agent for debt settlement companies—most likely providing referrals through their client base.

More information on this case be found here: https://dockets.justia.com/docket/massachusetts/madce/1:2021cv12065/240894

Symple Lending CEO

We’d also like to highlight some information about the CEO that you might find important. On January 11, 2017, the Federal Trade Commission (FTC) filed a case against Symple Lending’s CEO for violations of the Federal Trade Commission Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act. He was accused of assisting clients in making telemarketing calls that violated regulations by delivering prerecorded messages, calling numbers on the National Do Not Call Registry, and transmitting inaccurate caller ID information. 

The order includes provisions such as a permanent injunction against making robocalls and calling numbers on the National Do Not Call Registry, as well as bans on certain telemarketing practices. The CEO was also subject to a civil penalty judgment of $424,500, with $3,000 to be paid immediately. Additionally he must provide financial information about the business and maintain records of business activities for compliance monitoring. Violations of the order may result in the lifting of suspended penalties and immediate payment. 

More information on this case can be found here: https://www.ftc.gov/system/files/documents/cases/170112allorey-_05_-_fraley_stip.pdf

Important Distinction: Debt Consolidation Loans vs Debt Consolidation Programs

Now that we’ve brought to light Symple Lending’s possible functions as a marketing agent to debt settlement companies, we’d like to explain the differences between debt consolidation loans and debt consolidation programs (aka. debt consolidation / debt relief). In short, there is a huge difference between the two, and it’s important not to get them mixed up. 

Debt consolidation loans are loans you receive (typically with a lower interest rate than the rest of your outstanding debts) to consolidate your debts and pay them off faster. With debt consolidation programs, you allow your debts to fall behind so that a debt consolidation company can settle your debts for ~50% of their value. Debt consolidation companies also typically take a fee of ~25% of your debt’s value. With debt consolidation, it is possible that there might be hidden origination fees, balance transfer fees, closing costs, and annual fees. Furthermore, even though your monthly payment might be lower, the interest will likely accrue over a longer period of time, causing you to pay a higher amount of interest over the life of the loan.

Therefore, it is crucial to compare different debt consolidation programs and be aware of any hidden costs or fees. If you are looking for a loan, however, we have 2 debt consolidation loan options that do not affect your credit score when checking rate and do not charge prepayment penalties.

2 Top Debt Consolidation Loan Options  

Symple Lending Reviews

Now that you understand Symple Lending’s history and what it does, we’d like to dive into the company’s reviews. Hopefully, this will allow you to better understand what other people have experienced and what you might expect when working with Symple Lending.

BBB

The first site we checked was the Better Business Bureau (BBB). This accredited non-profit organization provides the public with information on businesses and charities. After searching up Symple Lending, we found that the company is rated 3.27/5 stars, has 22 complaints closed in the last 3 years, and 20 complains closed in the last 12 months. 

The review we highlighted also seems to correlate the information that we have brought up previously. Allegedly, the company engages in “bait and switch tactics”, informing customers that they are not eligible for the debt consolidation loan to push them into a “debt settlement program”. Furthermore, as brought up in the FTC case against Symple Lending, it appears that they continue to call clients even after they have asked to be placed on a Do Not Call List. 

Google Reviews

Next, we checked the company’s google reviews where they have 315 reviews and 4.4/5 star rating. 

Similar to what we previously mentioned, it seems like the 5.95% interest rate debt consolidation loan they offer is quite difficult to qualify for. Several people claim that the company then pitches a debt consolidation company as an alternative option. The loans that they do offer also seem to have much higher interests rates, closer to 25-35%. One individual also mentioned that when asking about the same loan directly from the lender, the interest rate was ~10% lower than what Symple Lending was asking for. However, not all the reviews were negative and some individuals praised the company for having well laid out options that were easy to understand. In general, it is important to take all these perspectives in mind when doing your research and making your decision. 

How Much Do Debt Consolidation Programs Cost?

At Debt Relief Pal, we believe that debt consolidation programs (debt relief) may be a good option, but often in context in understanding all the costs and duration estimates of all your options.

As such, you can use Ascend’s free debt consolidation program cost calculator to help you compare your current monthly obligations to a debt consolidation program.

Alternative Options to Symple Lending

Many people prefer to try to get a debt consolidation loan before looking at options such as debt management, debt payoff planning, debt settlement or bankruptcy.

If you’ve searched far and wide for a loan and can qualify, consider taking the free debt consolidation program cost calculator below that allows you to compare to other options.

Closing Thoughts

From my research, although not definitive or exhaustive by any means, we can reasonably conclude that Symple Lending offers debt consolidation loans while also being a marketing service that refers their clients to debt settlement companies. They may also engage in deceptive marketing tactics that undermine individuals who are not fully aware of their options to resolve debt. 

Now that you have other information about the company’s history, CEO, and online reviews, it’s important to remain aware about the company’s alternative motives and marketing tactics, as well as how that fits with your personal financial situation. As always, it’s a good practice to do your own research and build your own opinion.