Matco Tools Corporation

Unfortunately, Matco Tools has been experiencing product fill issues with our Supplier for this product.? We have since secured a new Supplier but there has been a lag time for them to come up to full production; however, backorders on this item are slowly being filled? Matco has offered an alternate tool replacement to Mr [redacted] which he has accepted.? Matco is in the process of shipping this like-ratchet to him at no charge, and the backordered tool also will be shipped to him once available? My apologies to Mr [redacted] if this matter has caused him distress, and I ask for his continued patience and understanding as Matco Tools works through this supply chain issue

Initial Business Response / [redacted] (1000, 6, 2015/08/20) */ This debt arose from two transactions where Mr [redacted] purchased tools, while at his place of business, for use in his trade or business On the Purchase Money Security Agreement - Master Agreement signed by Mr***, he warranted with his signature that "all Goods are purchased primarily for use in the commercial operation of this trade and business and not for personal, family or household use" As such, this is a commercial debt, not a consumer debt Per the terms and conditions of the Sale/Security Agreement, removing the goods purchased from the place of business, failure to pay all Obligations when due, and suffering a material adverse change in business or financial condition, among other provisions, would constitute a "Default" under the agreement which among other things would cause an acceleration of the debt making it due and payable immediately Mr [redacted] stated that he would not be returning to his place of employment, and his return to gainful employment in the near future was in question due to his medical condition Additionally, Mr [redacted] had already expended Matco's 26-week medical bypass provision Early in July, Mr [redacted] authorized Matco to run payments through his credit card; however, several weeks later, the credit card company declined to process further payments As of the date of this letter, Mr***'s account is weeks past due As stated above, the Sale/Security Agreement does not permit the removal of the Goods from the place of business While Matco will permit the Goods to be moved to a new place of employment, Matco does not permit the Goods to be moved to a private residence Since Mr [redacted] stated that he would not be returning to work and that any future employment was questionable, it was evident to Matco that its Collateral was in jeopardy Matco repossessed its Collateral on or about July 31, 2015, and a notice of sale letter was mailed to Mr [redacted] There are some personal items that were contained in the toolbox at the time of repossession The local Matco attempted to contact Mr [redacted] so that they could be returned; however, Mr [redacted] has not returned his calls Unless Mr [redacted] makes other arrangements with the Matco Distributor by September 3, these personal items will be left with Mr***'s employer ( [redacted] ) Because of the is situation involving the on-going location of the Collateral and Mr***'s ability to provide on-going payment method, Matco must reject his suggested resolution Once the Collateral is sold, Matco will advise Mr [redacted] regarding the status of his account

First of all, Matco Tools Distributors are franchisees and are not employees of Matco Tools Corporation Matco Tools financed two purchases for Mr [redacted] – on 11/19/and 3/12/ He was consistently past due by 1-weeks during the months of September, October, and November of On November 30, 2015, his account became five weeks past due Matco Tools does not report a delinquency to the credit bureaus until an account is days past due, neither do we make collection calls until an account is days past due Accordingly, Matco Tools reported a 30-day past due status to the credit bureau for Mr***’s account in our monthly reporting on November 30, since his account became weeks past due as of that date Matco Tools also made automated collection calls to Mr [redacted] on November 30, December 1, and December Mr [redacted] brought his account current on December 3, The terms of Mr***’s financing contract with Matco Tools requires Mr [redacted] to make weekly payments When Matco Tools reported the delinquency to the credit bureau, Mr [redacted] had missed five payments The Matco Tools Distributor is not required to ensure that you comply with your financial obligations to Matco Tools Corporation Matco Tools Corporation cannot change the reported account status unless Mr [redacted] can provide documentation to dispute the accuracy of the 30-day delinquency as reported on November 30,

Mr*** financed professional tools with Matco Tools on May 18, through a local distributorMatco Tools accepted assignment of the purchase agreements from the Distributor on May 22, Mr*** made payments directly to the local distributor. Matco Distributors are
franchisees and not employees of Matco ToolsBecause of this, Matco Tools does not have record of payments made directly to the local distributor until he or she remits the payment weekly through Matco Tools Distributor Global Pay system. When a payment is made to a local distributor the customer can expect the payment to post to their account in 5-business days. To account for this, Matco Tools does not report a customer late to the Credit Bureau until the account is behind weeks. Automated calls will also be made and late notice letters sent to a customer when their account is behind weekly payments and their credit is at risk A review of the account shows that the only late payment notice Mr*** received was at the end of March 2018/ beginning of April when his account was past due weeksA Matco Tools representative spoke with Mr*** on April 13, and Mr*** advised that he made his final payment to his local distributorThe representative could see the payment in the local distributor’s pending batch and she let Mr*** know that the funds would post to his account shortly. She also advised she would review the matter with the distributor and we would correct the credit reporting if necessaryThe representative was not able to make contact with the local distributor on that date Mr*** spoke with another representative on April 23, who advised that the account was reported as past due as only payment was received in the month of March, causing the account to be weeks behind when Matco Tools reported to the credit reporting. Unfortunately, the matter was not reviewed further at that time. Although the account was weeks past due at the end of the month when the account was reported to the Credit Bureau the account balance was only $15.19. Also, the customer has good pay history with Matco Tools. Additionally, this matter has since been reviewed with the local Matco Tools distributor who advised that this account was set up on automated payments. An unknown glitch in his computer system caused the payments to stop. Because of Mr***’s great pay history and the glitch with the local distributor’s system Matco Tools has since removed the late reporting from March Mr***’s Credit Bureau will be updated to reflect this change and that the account is paid in full when Matco Tools reports to the Credit Bureau at the end of April

Initial Business Response /* (1000, 5, 2016/03/10) */
On March 7, it appears that Matco Tools changed our reporting on this account to the credit bureauMrG***'s account should reflect a current rating from 7/through 1/
Initial Consumer Rebuttal /* (2000, 7, 2016/03/15) */
(The
consumer indicated he/she ACCEPTED the response from the business.)
They corrected the wrong

Unfortunately, Matco Tools has been experiencing product fill issues with our Supplier for this product. We have since secured a new Supplier but there has been a lag time for them to come up to full production; however, backorders on this item are slowly being filled Matco has offered
an alternate tool replacement to Mr*** which he has accepted. Matco is in the process of shipping this like-ratchet to him at no charge, and the backordered tool also will be shipped to him once available My apologies to Mr*** if this matter has caused him distress, and I ask for his continued patience and understanding as Matco Tools works through this supply chain issue

Matco Tools sells franchises to individuals who wish to be in business for themselves. Therefore, Matco distributors are independent businessmen and authorized distributors of Matco Tools, but are neither employees nor agents of Matco Tools. In order to assist its distributors,
Matco provides several financing plans to customers of qualified distributors. One of these plans is a Tech Assured program which a distributor can offer to his customer who does not qualify for Matco’s standard Purchase Money Security financing program because of challenging credit history. Matco purchases the customer’s contract from the distributor; however, the distributor agrees to collect weekly payments from the customer and remit such payments to Matco since the distributor would see the customer every week. Because of the credit risk, the Tech Assured program provides Matco with the ability to recourse 50% of the account balance back to the Distributor in the event the customer’s account becomes weeks past due at which time the account is transferred in-house to Matco’s PSA Department for collection purposes Mr*** purchased product from Matco Distributor Benjamin K*** on January 8, 2016, and took advantage to the Tech Assured financing program. The last payment received by Matco on this account was on June 17, 2016. Mr***’s account became weeks past due on October 26, at which time the account was transferred in-house, and Matco recourse 50% of the account balance back to Distributor K***. Matco has made numerous phone calls to Mr*** in an attempt to collect payment on this account but has not received additional payment since June 17, 2016. It is possible that any payment made to Distributor K*** is for purchases made outside of this Tech Assured account I suggest that Mr*** contact the Commercial Financial Services department at (***) *** to discuss payment arrangements to settle this account

Aaron *** applied for Mato Tools financing on October 18, and entered into his first contract on that same day. Since then Mr*** has entered into additional contracts dated November 8, 2017, December 19, and March 28, The total cash price for the contracts from
October 18, and November 8, were $3,and $1,404.40. The other contracts were for $and $696.95. Mr*** entered into these contracts through a local distributor. Matco Tools then accepted assignment of the purchase agreements from the Distributor. Matco Distributors are franchisees and not employees of Matco Tools Matco Tools requires a total cash price of $for initial contracts. Any additional contacts which are rolled into the initial contract would require a minimum of $total cash price. Although local distributors are independent agents they are provided with extensive training on the Matco Tools Business System before they start their franchise. However, there is a lot of information to know and it is possible that the local distributor was confused as to what the minimum total cash price for the contract would be. This was not done with malicious intent Additionally, Mr*** purchased the total cash price worth in professional tools. The distributor did not inflate the pricing of the items to achieve a certain dollar amount. Matco Tools hopes that Mr*** can use all of tools that he signed for and received in his line of work as a mechanic. Unfortunately, Mr***’s request to receive a $refund cannot be met because there is no basis for the request

Without Mr*** properly identifying the exact tools in question, it is difficult for Matco to reply specifically. Matco Tools has been experiencing product fill issues from our Supplier for a particular product lines, but, without identification of Mr***’s tools, it is impossible to
determine if this is the cause for the delay in warranty I suggest that Mr*** discuss his warranty needs with his Matco Tools Distributor or contact Matco Tools’ Customer Service Department by calling 866-BUYTOOL (866-289-8665) to receive assistance with his warranty needs

I am rejecting this response because: this is not a matter of what I understand or don't understand I had problems with their distributor which I called them about with no resolution about something he sold me and the price he gave me was $1,more than what we agreed on but my main issue is they're distributor said if it ever became too hard for me to handle that it was easy as returning the equipment with no consequences never was I told that it would still affect me years down the roadAnd then I have a lawyer that says they work for Matco calling threaten me

I am sorry that Mr*** is having service issues in getting his tools warrantied. Since Matco Distributors are franchisees and not employees of Matco Tools, any given shop may not have a Matco Distributor operating within that Territory. Matco certainly attempts to keep these
situations to a minimum; however, it does occur from time to time Until there is a Matco Distributor servicing Mr***’s shop, I suggest that he contacts Matco Tools’ Customer Service Department by calling 866-BUYTOOL (866-289-8665) to receive assistance with his warranty needs I have contacted a Matco Tools Customer Care representative who also will be contacting Mr*** to assist in getting his tools warrantied

Mr*** entered into the initial contract with Matco Tools on June 18, and entered into additional contracts on July 16, and July 23, 2014. These contracts were entered into with a local Matco Distributor and Matco Tools accepted assignment of the purchase agreements from the
Distributor. Per the Terms and Conditions signed at the time of the sale, the ‘Buyer grants to Seller and any Holder hereof a purchase money security interest and lien’ It appears that Mr*** does not understand that the financing agreement is a commercial contract, not a consumer contract. As such, commercial lending laws do not require the interest rate to be disclosed on the agreement and there is no provision for a “cooling-off” period or return-for-credit as may be provided in consumer lending Shortly after the last contract was entered, Mr***’s account became in default and Matco Tools attempted to work with him. Mr*** ultimately contacted Matco Tools on October 8, to set up voluntary repossession of the secured collateral. The collateral was picked up at Mr***’s place of employment on or about November 4, 2014. A waiver was signed allowing the repossession to finalize without a Notice of Sale. Mr***’s account was credited for the repossession $4,leaving a deficiency balance of $5,809.41. Calls were made to Mr*** in attempt to settle the deficiency balance on his account with no response Matco Tools is willing to work with Mr*** and will agree to settle this matter for $3,400. His credit would reflect that the charge off account was paid and closed as a charge off account with a $balance. Mr*** may contact Matco Tools Financial Services at 800-472-to discuss settlement of the account.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to me

Initial Business Response /* (1000, 8, 2015/10/01) */
Matco Tools sells products through commercial sales representatives directly to educational institutions and students Mr*** was a student at Lincoln Tech in Philadelphia, PA at the time that he entered into a purchase agreement with Matco
Tools on June 2, for the purchase of an impact wrench and socket set totaling $
The Purchase Money Security Agreement ("Agreement") that Mr*** signed is a commercial loan because these professional tools are purchased primarily for use in Mr***'s commercial trade and not for personal, family or household use as explicitly stated on the Agreement The Agreement, enclosed for your reference, contain detailed information on shipping address, goods sold, payment schedule, and terms of sale Additionally, Matco Tools provides the other terms and conditions to the Agreement on a separate form named Purchase Money Security - Master Agreement, also enclosed for your reference The Master Agreement provides information regarding Mr***'s compliance conditions under the Agreement
According to Matco's records, the purchased goods were mailed on June to the address provided on the Agreement, which is the address for Lincoln Tech The parcel was delivered on June and received by "***" The delivery detail report is also attached for your reference According to Lincoln Tech, it is their practice to accept delivery on behalf of students
Mr*** claims that he cancelled his order; however, Matco has no record that Mr*** made such a request, and commercial lending laws do not provide for a "cooling-off" period as may be provided in consumer lending
Matco Tools cannot be held responsible for either Lincoln Tech's or Mr***'s failure to deliver or collect this parcel after it was delivered to the school, as instructed, on June Matco Tools fulfilled its obligation by delivering the goods to the address provided by Mr***, and Matco expects Mr*** to fulfill his obligation to Matco pursuant to his binding Agreement As yet, Mr*** has not made a payment on this account I suggest he contact Matco at *** to make payment arrangements

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to me

I am sorry that Mr*** is having service issues in getting his tools warrantied. Since Matco Distributors are franchisees and not employees of Matco Tools, any given shop may not have a Matco Distributor operating within that Territory. Matco certainly attempts to keep these
situations to a minimum; however, it does occur from time to time Until there is a Matco Distributor servicing Mr***’s shop, I suggest that he contacts Matco Tools’ Customer Service Department by calling 866-BUYTOOL (866-289-8665) to receive assistance with his warranty needs I have contacted a Matco Tools Customer Care representative who also will be contacting Mr*** to assist in getting his tools warrantied

Unfortunately, Matco Tools has been experiencing product fill issues with our Supplier for this product. We have since secured an alternate source for this item, and the backorders are slowly being filled One of Matco’s Customer Care representatives will contact Mr*** in order to
obtain a credit card number so that a credit may be issued for the ratchet (CFR248LFTG). The replacement backorder will be cancelled My apologies to Mr*** if this matter has caused distress

Initial Business Response /* (1000, 10, 2015/12/18) */
It is customary for a Matco Distributor to "flip" a customer's Time Payment Account ("TP") into one of the financing plans provided by Matco Tools to creditworthy customers of qualified distributors
At the time of the TP balance
transfer, the customer has the opportunity to review the financing contract prior to executing the agreement There were items with outstanding balances on MrW***'s TP account that was transferred to a Purchase Money Security Agreement ("PSA") on July 10, According to the Matco Distributor, MrW*** purchased these items over the course of several years but had not paid in full MrW*** is now disputing the balances reflected in the TP transfer, specifically for the following items:
MSTand PFC- duplicated
MTJS1222P - didn't receive from Distributor
4225R-BC - toolbox bought in
In response to MrW***'s allegations, Matco Tools reconciled the items and balances with the Matco Distributor The Distributor states that MrW*** received both the MTJS1222P and the 4225R-BC, and Matco will not make an account adjustment for these items; however, it does appear that the MSTand PFCmay have been duplicated on the transfer Matco will make an adjustment in the amount of $to account for the duplication

Initial Business Response /* (1000, 5, 2016/03/10) */
On March 7, it appears that Matco Tools changed our reporting on this account to the credit bureauMrG***'s account should reflect a current rating from 7/through 1/
Initial Consumer Rebuttal /* (2000, 7, 2016/03/15) */
(The
consumer indicated he/she ACCEPTED the response from the business.)
They corrected the wrong

Initial Business Response /* (1000, 6, 2015/08/20) */
This debt arose from two transactions where Mr*** purchased tools, while at his place of business, for use in his trade or businessOn the Purchase Money Security Agreement - Master Agreement signed by Mr***, he warranted with his
signature that "all Goods are purchased primarily for use in the commercial operation of this trade and business and not for personal, family or household use"As such, this is a commercial debt, not a consumer debt
Per the terms and conditions of the Sale/Security Agreement, removing the goods purchased from the place of business, failure to pay all Obligations when due, and suffering a material adverse change in business or financial condition, among other provisions, would constitute a "Default" under the agreement which among other things would cause an acceleration of the debt making it due and payable immediately
Mr*** stated that he would not be returning to his place of employment, and his return to gainful employment in the near future was in question due to his medical conditionAdditionally, Mr*** had already expended Matco's 26-week medical bypass provisionEarly in July, Mr*** authorized Matco to run payments through his credit card; however, several weeks later, the credit card company declined to process further paymentsAs of the date of this letter, Mr***'s account is weeks past due
As stated above, the Sale/Security Agreement does not permit the removal of the Goods from the place of businessWhile Matco will permit the Goods to be moved to a new place of employment, Matco does not permit the Goods to be moved to a private residenceSince Mr*** stated that he would not be returning to work and that any future employment was questionable, it was evident to Matco that its Collateral was in jeopardy
Matco repossessed its Collateral on or about July 31, 2015, and a notice of sale letter was mailed to Mr***There are some personal items that were contained in the toolbox at the time of repossessionThe local Matco attempted to contact Mr*** so that they could be returned; however, Mr*** has not returned his callsUnless Mr*** makes other arrangements with the Matco Distributor by September 3, these personal items will be left with Mr***'s employer (*** ***)
Because of the is situation involving the on-going location of the Collateral and Mr***'s ability to provide on-going payment method, Matco must reject his suggested resolutionOnce the Collateral is sold, Matco will advise Mr*** regarding the status of his account