Carmel Financial Corporation, Inc.

Unfortunately, we cannot accept electronic signatures due to concerns regarding verification of identity. During or before this time, the account was paid off by the consumer. Upon receipt of the payment in full, we initiated the process to terminate the UCC-1 filing. We have also been in contact...

with the customer and are actively working on this matter.

We are an independent finance company
that purchased the loan from The Military Travel Store.  Mr. [redacted] purchased a ticket from The Military Travel Store and subsequently
cancelled that purchase.  For the value paid, Mr. [redacted] was promised (by The Military Travel Store) a
replacement...

ticket within 12 months.  Prior to a replacement ticket being
issued, The Military Travel Store went out of business.  Carmel Financial was recently made aware that Mr. [redacted]’s replacement ticket was not issued and will not be
issued.  We have cancelled his account with us and cleared all amounts due to Carmel Financial Corporation.

Carmel
Financial verified the customer’s satisfaction with the product upon purchase
and prior to completing the loan. The customer made payments up to 05/23/2006,
13 months after the original financing on 4/30/2005.  We do not repossess financed systems, and have
no records to indicate the...

system was removed from the customer’s home.  There was no mention of alleged repossession
or complaints regarding the system until this complaint, 10 years after
installation.Our
records indicate the customer either hung up or was disconnected during the
call in question.  The disconnect
happened immediately upon our agent informing the customer of the balance
due.  We apologize if there was a
technical issue and the call was disconnected.  Carmel Financial overall conclusion is that the debt is owed unless
there is more persuasive evidence to the contrary. Regards,Rodney
G[redacted]Chief
Financial Officer

Dear[redacted] - There are two aspects of this complaint.  The first is whether we had the contractual authority to file a UCC-1 Fixture Filing related to Mr. [redacted] purchase of a walk-in shower.  The second is whether Carmel Financial will subordinate its position to a new mortgagor...

with respect to Mr. [redacted] attempt to refinance his mortgage.The Retail Installment Contract and Security Agreement signed by Mr. [redacted] contains two provisions related to security.  The first, on the front of the contract states "Security:  I am giving you and your assigns a purchase money security interest in the goods I am purchasing."  The second, in the Additional Terms and Conditions on the reverse side of the contract states "Security:  To secure the payment and performance under the terms of this Contract, you give us a security interest in the Goods purchased and any other collateral described above, and all accessions, attachments, and equipment placed in the Goods or other collateral, together called Property, and the proceeds of the Property."   Based on the above, a UCC-1 Financing Statement was filed as a fixture filing in accordance with applicable laws.With regard to the second aspect of this complaint, Carmel Financial will subordinate its position with regard to a mortgage re-finance to no less than a second position after the mortgage has been re-financed.  Mr. [redacted] request that we pay his mortgage payment will not be granted.Please contact me with any questions.Sincerely,[redacted], CFO

Revdex.com:I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that the response would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
A “respected leader in the finance industry” would recognize its fiduciary and moral obligations to its customers.  It is manifestly untrue to claim that Carmel Financial is not in a position to do subordinations; generating a subordination agreement is no more difficult than generating a lien document, which Carmel Financial does regularly.  While the law does not specifically require companies to subordiante liens when there would be no detriment to the company in doing so, Carmel Financial's policy of arbitrarily preventing its customers from improving their financial situation is antithetical to Carmel Financial's claim made here that the company strives to help its customers.  It is common-practice for respected leaders in the finance industry to subordinate liens when there would be no detriment to the company’s interest in doing so, and to charge a subordination fee in order to support the costs associated with the activity.  Regards,[redacted]

Dear [redacted] - It is our understanding that the Fair Credit Reporting Act provides a reporting statute of 180 days plus seven years from the date of first delinquency.  This is not controlled by us, but is controlled by the credit bureaus.  We report the date of first delinquency on the account and subsequent reporting is subject to their calculation of the seven year statute noted above.in terms of interest, interest has been added to the account at the agreed upon contractual rate.  We can find no provision in the Truth in Lending Act (TILA) that requires the cessation of interest when an account is charged off.  However, if the consumer can provide a specific citation from TILA that requires this, we will be glad to review this citation and re-consider our position.  Sincerely,Joseph [redacted] CFO

The UCC was not extinguished by the bankruptcy

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID[redacted], and find that this resolution would be satisfactory to me.  I will wait until for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that the response would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
It is true that they did not accept the automatic signature as part of their policy, which was fine. However, at this point they have been provided a "wet" signature and not given the information requested. Similarly, they sent me a generic word document saying that the account had been satisfied but the document is not professional in any sense of the term. It does not have any identifying information such as account number, item paid off, etc. The document is also a word document, that is still editable, without any letter head or anything to show that it is an "official" document. I reached out to this company in regards to the lack of information and requested that they send the same letter and simply add an account number. I did not hear anything back from the individual I responded to but got a call from a representative saying it could take 24 hours in order to add my account number to the letter as the manager had to "research what changes they could make to the letter." Who sends out an account pay off document without any information to identify the account? Why does it take 24 hours to add an account number to a document that is easily editable? Why have they not replied to my refinance company and given them the information requested? No, they are not actively working on this issue as they are the beginning and end of the issue thereby are able to resolve it when they decide to do so. The final payment has cleared and there is no reason not to provide myself with what I am requesting nor my refinance company the information they have requested. I have attached their letter to the attachments as an example of the professionalism, or lack thereof, displayed by this company.
Regards,
[redacted]

To the CFO of Carmel Financial: I work for a national mortgage company and we were unable to complete a Rate & Term Refinance of our applicant's existing 1st mortgage solely because your company, Carmel Financial, flatly refused to subordinate. Today, after several weeks of trying to reason with Carmel Financial, we are finally giving up. Carmel Financial is currently in 2nd position behind the existing lender and would remain in 2nd position had they bothered to subordinate. I've been lending for 20 years and I've never seen a company behave this way. Our loan applicant is unable to secure a more favorable 1st mortgage entirely because of Carmel Financial. I'm going to refer our customer to an attorney to investigate what recourse they may have against your company It's great that you come on this message board and claim your company will subordinate, but in reality your company will not lift a finger. Your company's practice of preventing people from bettering their financial position is outrageous.

My husband is 80% disabled veteran we had hard times because of retiring an having to wait to get paid. We have filled obligations that they have asked to try to become current by doubling up on payments. All we are asking is for them to do a subordination of the lein to the mortgage company so that we can refinance our mortgage which in return would help us pay Carmel Financial off faster. They refuse to do it!!! If I had the full payment to pay it off I most definitely would. Thats why I chose to refinance so that I will be able to get them out of the way an pay them off. Ive had issues with this company from the very start. People taking payments an then not posting them or they wouldnt do the auto payments that where instructed from the very beginning. This has been the worse experience ever!

Review: This account was opened back in 2007. They rightfully put their account on my credit report. I got a divorce and the product stayed with the house and wasn't paid. Subsequently, this debt was sent to collection in 2009 to an [redacted] in the amount of $4,490. In 2013 they put a NEW report on my credit report for the EXACT SAME account but with a significantly higher balance that accrues every month. The account balance is over $10,000. I have filed multiple disputes with the credit report bureaus to delete the DUPLICATE account to no avail. They say they cannot do anything unless the creditor updates the account and agrees to it. This is my 2nd complaint with this company. They are unethical. It seems to me that since the STATUTE OF LIMITATIONS has passed on the first account on my credit that they decided to illegally add the same account to my credit report again. This unethical behavior on their part is causing my income to debt ratio to incorrectly raise as I now have an additional $10,000 in debt that is NOT correct. There has been no payment on this account since 2008. Statute of limitations in KS on promissory note debt is 5 years. I have not contacted this company directly due to my previous history with this company. They do not have correct business etiquette and I do not want to be screamed at and hung up on as my previous experience.Desired Settlement: I want this account REMOVED from all 3 credit bureaus on my credit report.

Business

Response:

Dear [redacted]

In reporting account activity to credit bureaus, there are reporting conventions that must be used. One of these is that in the event of a charged off account, the original creditor reports that the account has been charged off and reports the charged off balance while the collection agency will then report the account activity after charge off. This is what happened to Ms. [redacted]s account. It is the reporting convention used by all three major credit bureaus.

In terms of the collection statute of limitations, we agree that this has expired in October of 2013 and Ms. [redacted]s account has been recalled from the collection agency, [redacted]. Accordingly, the collection agency will cease reporting.

However, Carmel Financial will continue to report the account since even though the collections statute has expired, the reporting statute has not. The reporting statute for a charged off debt is generally seven years (there are more specific guidelines having to do with the date of first delinquency that resulted in charge off). This reporting statute is governed by the Fair Credit Reporting Act.

Please contact me if you need any additional information.

Sincerely,

Chief Financial Officer

Review: I recently purchased a Rain Soft water treatment system and the financing was set up thru Carmel Financial. I was not made aware of a Lien against the property. The 1st payment is due on 5/5/2015 which is not a problem. I pay most of my bills online so it's not late. I also have a Pending Refinance Mortgage with Freedom Mortgage for a lower fixed rate. Carmel Financial would not agree to a 2nd Lien position so my Mortgage loan can proceed. This causes me to actually lose money over the life of the loan. I am a 70% disabled Veteran with over 33 years to my country and a fixed income, I pay my bills on time and have a Good credit history. I believe Carmel Financial can approve a 2nd lien position so this won't cause me further financial hardship.Desired Settlement: Approve my original request for Carmel Financial to become the 2nd Lien holder with their loan so that I may proceed with Freedom Mortgage to get my Mortgage loan approved at a much better fixed rate for the life of loan with them.

Business

Response:

Dear [redacted] - Carmel Financial will work with Mr. [redacted]' mortgage lender so that he may refinance his mortgage at a lower rate. We will execute documents to accomplish this provided that the position of our UCC-1 Fixture Filing does not fall below a second position, subordinate only to the first mortgage.Please contact me with any questions.Sincerely,[redacted]Chief Financial Officer

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID[redacted], and find that this resolution would be satisfactory to me. I will wait until for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,

Review: The original Collection account is dated January 2006 with CARMEL FINANCIAL CORPORATION $2,981 Original Balance . It was past the drop off date on my credit report but now is showing up as a collection account with AMERICAN ACCOUNTS MANAGE in the amount of $6422. The companies mentioned are one in the same. They Re-triggerred the debt so that they can follow past the 7 yr drop off date. This deb and account is Obselete. I tried to contact AMERICAN ACCOUNTS MANAGE and am reffered directly to Carmel Financial Corp. When asked why my account was Re-Aged to stay on my report and that I was well within my rights to provide them with the statue that a negitive or delinquent account will be removed after 7.5 yrs from the date of collections. At this time I was told they can keep it on my record for as long as they please and they did nothing Illegal. I Have reported this to the Credit Agencies As Re-Aging is illegal Practice. I would like a report on this from the Revdex.com so that I may take legal actions against this company and their tactics esspecially against Disabled Vets as I am one.Desired Settlement: Irronious Debt Removed From All 3 of my credit reports within 60 days of Revdex.com Outcome

Business

Response:

Dear [redacted] - We investigated Mr. [redacted]'s complaint regarding reporting his obligation to the credit bureaus. During this review, it was noted that the obligation signed by Mr. [redacted] was dated January 6, 2008, which is still within the seven year reporting period.However, we will still honor Mr. [redacted]s request and delete this account from all three credit bureaus. If you need any other information, please contact me.Sincerely,[redacted]

SO this was the finance company that backed a crooked contractor that did work on my house. The contractor did horrible work. The put in new doors and windows that still leak to this very day and never finished the job. They were all done wrong the ones they so called finished. Carmel Financial paid the contractor and never followed up with us on if the work was completed. I had to hire another contractor to finish putting in the windows that were left on my back porch. I refused to pay them and now thye report this on my credit every month.

Review: Carmel Financial placed a lean on my home without my knowlege, nor have I recieved any correspondace to the fact. When I signed my closing papers on my homes refinance. I was told to skip Febuarys payment. Which has been spent. A week later I wa called on a lean. I told my mortgage co, there is no lean another week goes by and I am informed it was Carmel Financial. I asked how can that been the 1st payment is not even due. My mortgage Co. informe3d me Carmel refuses to sign in 2nd position which is normal. They want to be in the #1 position, like they are the primary lean holder on my house. I called Carmel financial and was treated rudly. I was told talk to my mortgage co, had it there policy to be primary. I cant find any where on my paperwork where I agreed or this was told to me, or I never would have done the bathroom instalation. I now have had to make up an additional house payment of 1259.54. Also stopped my VA loan refinance.Desired Settlement: 1)The 1259.54 take off of my bill at Carmel Finance, for the hardship they caused me and not informing me by letter, e-mail, or explaination of contract. 2) Sign the mortgage refinance in the 2nd position under my mortgage co which is normal bussiness practice

Business

Response:

Dear[redacted] - There are two aspects of this complaint. The first is whether we had the contractual authority to file a UCC-1 Fixture Filing related to Mr. [redacted] purchase of a walk-in shower. The second is whether Carmel Financial will subordinate its position to a new mortgagor with respect to Mr. [redacted] attempt to refinance his mortgage.The Retail Installment Contract and Security Agreement signed by Mr. [redacted] contains two provisions related to security. The first, on the front of the contract states "Security: I am giving you and your assigns a purchase money security interest in the goods I am purchasing." The second, in the Additional Terms and Conditions on the reverse side of the contract states "Security: To secure the payment and performance under the terms of this Contract, you give us a security interest in the Goods purchased and any other collateral described above, and all accessions, attachments, and equipment placed in the Goods or other collateral, together called Property, and the proceeds of the Property." Based on the above, a UCC-1 Financing Statement was filed as a fixture filing in accordance with applicable laws.With regard to the second aspect of this complaint, Carmel Financial will subordinate its position with regard to a mortgage re-finance to no less than a second position after the mortgage has been re-financed. Mr. [redacted] request that we pay his mortgage payment will not be granted.Please contact me with any questions.Sincerely,[redacted], CFO