Local man sues bank, claims interest rate was 621.6%

Local News

LUBBOCK, Texas — Axos bank on Friday moved a lawsuit out of Hockley County court and into federal court.

Charles Frederick Pofahl and Big Country Hauling LLC sued Axos Bank in early November. Pofahl admits in his lawsuit that in October 2018 he borrowed $47,299.61 and he has an obligation to pay that back with interest.

However, he also claimed that Axos wants to be paid back $89,000.49.

The lawsuit said, “Axos’s 621.60% APR exceeds the maximum amount allowed by law. Commercial Loans are subject to a commercial usury ceiling of 18.00% annual interest, which may float with inflation to 24.00%.”

“The interest rate is more than double the amount allowed by law,” the lawsuit said.

Pofahl has paid back more than $12,000, according to the lawsuit.

Among other things, the lawsuit seeks a declaration by the court: “The loan is invalid and substantively unconscionable;”

Axos has not yet filed its side of the story in court records.

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