Matco Tools Corporation

Initial Business Response /* (1000, 11, 2016/02/26) */
Mr. A[redacted] purchased a toolbox from Matco Distributor Craig on or about January 9, 2015, and Matco accepted assignment from Distributor Craig.
The Purchase Money Security Agreement (the "Contracts") that Mr. A[redacted] signed warrants...

"that all Goods are purchased primarily for the use in the commercial operation of his trade or business and not for personal, family or household use." As stated, these contracts are commercial in nature, not consumer; and, as such, there is no return-for-credit policy as may be provided in some consumer financing agreements.
On or about February 18, 2015, Mr. A[redacted] approached Distributor Craig in order to arrange for the surrender of his toolbox because he had lost his job and could not financially afford to make the required payments. Distributor Craig advised Matco Tools regarding Mr. A[redacted]'s intentions, and a voluntary repossession process was initiated by Matco.
A notice of sale letter was mailed on February 18, 2015 to Mr. A[redacted] for delivery to the address provided by Mr. A[redacted] on his credit application dated January 9, 2015. After the prescribed waiting period, the toolbox was sold, and the Fair Market Value was credited to Mr. A[redacted]'s account less any cost of sale.
After all adjustments, Mr. A[redacted] owes a deficiency balance in the amount of $3,382.72.
Matco Tools was unable to make contact with Mr. A[redacted] since we did not have his current address or telephone number.
I suggest that Mr. A[redacted] contact the Commercial Financial Services department at (800) 472-0012 to discuss payment options.

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 16 weeks past due at which time the account is transferred in-house to Matco’s PSA Department for collection purposes.   Mr. [redacted] purchased product from Matco Distributor Benjamin K[redacted] 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. [redacted]’s account became 16 weeks past due on October 26, 2016 at which time the account was transferred in-house, and Matco recourse 50% of the account balance back to Distributor K[redacted].    Matco has made numerous phone calls to Mr. [redacted] 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[redacted] is for purchases made outside of this Tech Assured account.   I suggest that Mr. [redacted] contact the Commercial Financial Services department at ([redacted] to discuss payment arrangements to settle this account.

I am rejecting this response because: The response provided was not even related to the complaint. Yes the acct was past due. But he was being charged for a service instead of the tool. All month refunded would be going to the tool. The charges incurred were matcos error.

Initial Business Response /* (1000, 5, 2015/07/29) */
Mr. B. is an independent contractor, and not an agent or employee of Matco Tools.
Matco Tools does not consider the situation described in Mr. [redacted]'s complaint as attaching any degree of liability to Matco Tools. Mr. [redacted]'s complaint has...

been forwarded to Matco's Sales Department for further investigation or discussion with Mr. B., if deemed appropriate.
Initial Consumer Rebuttal /* (3000, 7, 2015/08/05) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I do not accept this response because this person is a representative of Matco and ad such should be required to conduct himself in a professional manner. Is this the image Matco is setting that their representative can harass and threaten customers. As a company you decide who will represent you company and there for have a responsibility to stand behind the people you chose to represent your company whether it's positive or negative.
Final Business Response /* (4000, 9, 2015/08/11) */
As stated previously, Mr. B. is not an agent or employee of Matco Tools. By legal definition, an Agent is "a person authorized by another to act for him, one intrusted with another's business. One who acts for or in place of another by authority from him; a substitute, a deputy, appointed by principal with power to do the things which the principal may do. One who deals not only with things, as does a servant, but with persons, using his own discretion as to means, and frequently establishing contractual relations between his principal and third persons." (Black's Law Dictionary) Further, by legal definition, a Representative is "one who represents or stands in the place of another. One who represents others or another in a special capacity, as an agent, and term is interchangeable with 'agent'." (Black's Law Dictionary) Mr. B. does not have authority to act on behalf of nor stand in the place of Matco Tools. On the basis of Mr. B.'s franchise relationship with Matco Tools, Matco's District Business Manager located in Mr. B.'s area spoke to him regarding your harassment claim and the manner in which he addresses his customers. Matco Tools does not have anything further to provide in this claim.

I am rejecting this response because:My retailer give you a receipt for the day you pay for it but doesn't turn the payment in on time to Matco Tools

Unfortunately, Matco Tools has been experiencing product fill issues with our Supplier for these products.  We have since secured an alternate source for these items, and backorders are slowly being filled.   One of Matco’s Customer Care representatives will contact Mr. [redacted] in order...

to obtain a credit card number so that a credit may be issued for these products, and the replacement backorders/repair will be cancelled.   My apologies to Mr. [redacted] if this matter has caused him distress.

Matco Tools sells products through commercial sales representatives directly to educational institutions and students.  Mr. [redacted] was a student at Eastfield College in Dallas Texas at the time that he entered into a purchase agreement with Matco Tools on or about June 2, 2017 for the...

purchase of a various tools totaling $1,996.12.   The Purchase Money Security Agreement (“Agreement”), enclosed for your reference, contains a provision that permits Matco Tools, in the event that any item on the contract which remains on backorder for 45 days, to either (1) substitute with like product of an equal or greater value for the same price, or (2) cancel the product from the contract causing the amount of the contract and payment due to be adjusted accordingly.    As previously stated, the Agreement was executed on June 2, 2017.  The tool order was held for 46 days due to a backorder of 2 tools (14 piece socket set and a 12 piece socket set) which totaled $224.15, and which were removed from the order, pursuant to the provisional clause stated above.  The order was finalized on July 18, 2017, and Mr. [redacted] was advised of the revision to his order and was provided with a revised contract indicating that the backorder-items were removed.   Mr. [redacted] contacted Matco on August 9, 2017 upset that he did not received the backordered items and accused Matco of breaching the contract.  Matco explained the contract’s 45-day backorder provision and advised that he could re-order the two backorder-items from the Matco Vo-tech Representative.  These are very popular socket sets and Matco is expecting another shipment of these items next week.  Mr. [redacted] should contact his Vo-tech Representative to order these items if he is still interested in them.   Matco expects Mr. [redacted] to fulfill his obligation to Matco pursuant to his binding Agreement.

I am rejecting this response because:[redacted] FEELS MATCO SHOULD HONOR IT'S AGREEMENT AS WELL. 2 WAY STREET. YOU CAN'T EXPECT A CUSTOMER TO HONOR AGREEMENTS FROM WHICH YOU YOURSELF CAN NOT HONOR. GTFO.

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 26 items with outstanding balances on Mr. W[redacted]'s TP account that was transferred to a Purchase Money Security Agreement ("PSA") on July 10, 2014. According to the Matco Distributor, Mr. W[redacted] purchased these items over the course of several years but had not paid in full. Mr. W[redacted] is now disputing the balances reflected in the TP transfer, specifically for the following items:
MST1225 and PFC440 - duplicated
MTJS1222P - didn't receive from Distributor
4225R-BC - toolbox bought in 2009
In response to Mr. W[redacted]'s allegations, Matco Tools reconciled the items and balances with the Matco Distributor. The Distributor states that Mr. W[redacted] 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 MST1225 and PFC440 may have been duplicated on the transfer. Matco will make an adjustment in the amount of $262.45 to account for the duplication.

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 11/19/14 and 3/12/15.  He was consistently past due by 1-4 weeks during the months of September, October, and November of...

2015.  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 30 days past due, neither do we make collection calls until an account is 30 days past due.  Accordingly, Matco Tools reported a 30-day past due status to the credit bureau for Mr. [redacted]’s account in our monthly reporting on November 30, 2015 since his account became 5 weeks past due as of that date.  Matco Tools also made automated collection calls to Mr. [redacted] on November 30, December 1, and December 2.  Mr. [redacted] brought his account current on December 3, 2015.   The terms of Mr. [redacted]’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, 2015.

As previously stated, these contracts were entered into with a local Matco Distributor and Matco Tools then financed the sale.  Although local distributors are independent agents they are provided with extensive training on the Matco Tools Business System before they start their franchise.  Additionally, a review of the PSA system notes does not show any conversation between Mr. [redacted] and Matco Tools where Mr. [redacted] is alleging that the price of an item or the balance was not what he agreed to.  This complaint, almost 4 years after the contract was signed, was the first Matco Tools was made aware of Mr. [redacted]’s claim that the contract was not what he agreed to.    Attached is the last Contract and the Terms and Conditions of the loans signed by Mr. [redacted].   The contract of July 23, 2014 provides an itemization of that purchase as well as the rollover from the July 15, 2014 purchase.  The principal balance of both purchases ($7,125.71) is listed on Line H, and the expected interest to be paid for the duration of the Agreement ($2,845.81), if only minimum payments are made, is listed on Line I.  These amounts total $9,971.52.  Mr. [redacted] signed the Agreement right below the stated balance due acknowledging receipt of the goods and the amount he agreed to pay for them according to the listed terms and conditions.  Per section 9 of the terms and conditions, the contract represents the entire agreement between the parties on this subject.  Therefore, no prior conversations with the Distributor would have any effect on the terms of this sale.  As stated in Item 3 of the Master Agreement, if Buyer pays the full amount due before the last scheduled payment is due, he would be entitled to that portion of interest, if any, to which Matco has not then become entitled as calculated pursuant to the Rule of 78’s calculation.  Because of the commercial nature of the Agreement, the interest rate is not required to be disclosed on the Agreement.   Per Matco Tools’ original response, there is no provision for a “cooling-off” period or return-for-credit as may be provided in consumer lending.

For clarification purposes, Matco Tools Distributors are franchisees and are not employees of Matco Tools Corporation.   Matco Tools financed four purchases for Mr. [redacted] – on April 12, 2016, April 15, 2015, April 3, 2013, and January 23, 2013.  Mr. [redacted] contends that Matco incorrectly...

reported a delinquent payment status of his account to the credit bureau beginning for the month of August 2016.   Matco Tools does not report a delinquency to the credit bureaus until an account is 30 days past due, neither do we make collection calls until an account is 30 days past due.  Accordingly, Matco Tools reported a 30-day past due status to the credit bureau for Mr. [redacted]’s account in our monthly reporting for August 2016, November 2016, January 2017 and February 2017.    Matco Tools Corporation will change the reported account status if Mr. [redacted] can provide documentation, such as receipts, that contradicts the accuracy of the 30-day delinquencies.

I spoke with Jason C., the operator of mobile store for Richard C..  Jason assured me that he has every intention of servicing the shop associated with Mr. [redacted] complaint.  Jason advised that he has encountered scheduling issues that have prevented him from arriving at this shop before...

the shop’s closing.   In the meantime, if Mr. [redacted] has tools that require immediate attention before Jason visits the shop, Mr. [redacted] may contact Matco Tools’ Customer Service Department by calling [redacted] to receive assistance with his warranty needs.

[redacted] - Revdex.com response 2/6/17     Matco Tools offers a limited product warranty against materials and workmanship defects for any tool that is branded with the Matco label (see below).  Since you indicated that you purchased this tool nearly 10 years ago, it would be a safe...

assumption that the tool is free from defects in materials and workmanship.  Additionally, the Statute of Repose in Ohio provides that a tool’s useful life extends 10 years from the date of purchase, unless a manufacturer’s warranty provides for an extended time, which Matco Tools does not.  Your Distributor’s offer of a $31 truck credit seems more than fair.       MATCO TOOLS LIMITED PRODUCT WARRANTY Any tool or part branded with the Matco Tools (MATCO) name is warranted against defects in materials and workmanship. Matco, or one of its authorized representatives, will, at Matco's option, repair, or replace, any tool or part bearing the MATCO name, without charge, if the defective or malfunctioning tool or part is returned to Matco or one of its authorized representatives. Please be sure to include your name and address with the tool or part, and describe the nature of the problem. To return a product through matcotools.com you must first Register as a user. You can then Login. Once registered and logged in, returns can be processed through the Your Account link in the upper right corner of any matcotools.com page. Matco shall have no obligation pursuant to the Matco Warranty with respect to any tools or parts which in Matco's sole judgement have been altered damaged, misused, abused, badly worn, lost or improperly maintained. This Warranty is null and void if the customer, or any other person other than an authorized representative of Matco, has made any attempt to service or modify the tool prior to its return to Matco under this Warranty. All products sold by Matco to its Distributors are assigned a warranty code in the Matco Price List. The limited warranty provision with respect to each such product shall be the limited warranty designated in this warranty code agreement and may be amended by Matco from time to time in its sole discretion. Matco Tools reserves the right to make periodic changes in construction or tool design at any time. Matco specifically reserves the right to make these changes without incurring any obligation or incorporating such changes or updates in tools or parts previously distributed. The Matco Warranty is in lieu of all other warranties, expressed or implied, including any warranty of merchantability or fitness for a particular purpose, and sets forth the sole and exclusive remedy in contract, tort, strict liability, or otherwise. Under no circumstances shall Matco be liable for any special, incidental, or consequential damages. Note: Some states do not allow the exclusion or limitation of incidental or consequential damages. The Matco Warranty confers specific legal rights. The purchaser may have other rights which vary from state to state or outside the United States of America. No Matco employee, distributor or other person, other than an authorized officer of Matco, may extend the Matco Warranty. Any such alteration must be in writing and signed by such officer. MISUSED AND ABUSED PRODUCT Over time, Matco's hand tools and service equipment have earned a reputation for world-class quality, superior workmanship, and professional-grade durability. When properly used and conscientiously maintained, Matco tools can provide you their full lifetime of reliable service. However, this is not to say that our tools are indestructible. When subjected to intentional physical misuse and abuse, even Matco tools can break or fail prematurely. Matco Tools and our Matco Distributors recognize that the warranty coverage which we offer on our tools and equipment has a significant influence on your decision to purchase and use Matco products. We also recognize that the intentional misuse and abuse of hand tools continues to be a common concern to us all. As a result of both considerations, Matco has structured our warranty policies and product guarantees accordingly. While eminently fair by industry standards, Matco's Warranty reserves the right to exclude products which have been obviously and intentionally misused and abused. IMPORTANT NOTICES Product Changes: Matco reserves the right to make changes in design, appearance and construction of any and all products listed herein without incurring any obligation in making such changes in products previously sold or transferred. MATCO also reserves the right to discontinue the availability of any products at such time as such action is considered necessary. Liability: Matco cannot accept the responsibility for the results of using tools which have been abused or badly worn. MATCO also cannot accept responsibility for results of using tools incorrectly or using tools which have been improperly repaired or maintained. Safety Tips: Matco encourages tool safety and proper tool use. We have provided various safety tips and proper tool usage tips throughout our on-line catalog. These tips are provided only as a convenience to our customers and we in no way imply that it is a complete list of all tool safeguards and precautions. We suggest you refer to the manufacturer's instructions when provided.

For clarification purposes, Matco Tools Distributors are franchisees and are not employees of Matco Tools Corporation.   Matco Tools financed purchases for Mr. [redacted] for over 10 years and most recently on or about February 26, 2014.  Mr. [redacted] contends that Matco incorrectly reported a...

delinquent payment status of his account to the credit bureau for March 2017.   After further review, Matco will remove the credit bureau rating for March.  Mr. [redacted]’s account is currently past due.  I urge him to bring his account current before the end of the month to avoid another negative credit bureau rating.

Mr. [redacted] entered into the initial contract with Matco Tools on June 18, 2014 and entered into 2 additional contracts on July 16, 2014 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. [redacted] 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. [redacted]’s account became in default and Matco Tools attempted to work with him.  Mr. [redacted] ultimately contacted Matco Tools on October 8, 2014 to set up voluntary repossession of the secured collateral.   The collateral was picked up at Mr. [redacted]’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. [redacted]’s account was credited for the repossession $4,114.17 leaving a deficiency balance of $5,809.41.    Calls were made to Mr. [redacted] in attempt to settle the deficiency balance on his account with no response.   Matco Tools is willing to work with Mr. [redacted] 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 $0 balance.  Mr. [redacted] may contact Matco Tools Financial Services at 800-472-0012 to discuss settlement of the account.

Initial Business Response /* (1000, 8, 2015/10/01) */
Matco Tools sells products through commercial sales representatives directly to educational institutions and students. Mr. [redacted] 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, 2015 for the purchase of an impact wrench and socket set totaling $431.22.
The Purchase Money Security Agreement ("Agreement") that Mr. [redacted] signed is a commercial loan because these professional tools are purchased primarily for use in Mr. [redacted]'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. [redacted]'s compliance conditions under the Agreement.
According to Matco's records, the purchased goods were mailed on June 5 to the address provided on the Agreement, which is the address for Lincoln Tech. The parcel was delivered on June 9 and received by "[redacted]". 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. [redacted] claims that he cancelled his order; however, Matco has no record that Mr. [redacted] 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. [redacted]'s failure to deliver or collect this parcel after it was delivered to the school, as instructed, on June 9. Matco Tools fulfilled its obligation by delivering the goods to the address provided by Mr. [redacted], and Matco expects Mr. [redacted] to fulfill his obligation to Matco pursuant to his binding Agreement. As yet, Mr. [redacted] has not made a payment on this account. I suggest he contact Matco at [redacted] to make payment arrangements.

Matco Tools did enter into a settlement agreement with Mr. [redacted] on or about December 2011.  According to account records, the last time Matco Tools updated its reporting to the credit bureau regarding Mr. [redacted]’ account was on or about September 29, 2012 with instructions to delete...

the account entirely.   Apparently, the bureau failed to do so.   Matco resubmitted an electronic correction to all three credit bureaus on October 3, 2016.  Be advised, however, that credit bureaus typically process updates within 30 days from the date of notification.  If this process does not correct the error on Mr. [redacted]’ credit report, he should file a dispute with Equifax, Transunion and Experian directly.  This is the best and most efficient method to correct information on his credit bureau report.

I am rejecting this response because: when Matco's reps sell these tools they are sold with a lifetime warranty.  Much like the more reputable companies Snap on, Cornwell, Mac, and even Craftsman. This item has failed under the lifetime warranty. I am due a similar like, kind,quality item.

Matco Tools confirmed with Mr. [redacted] that he and Distributor [redacted] met on July 3rd in order for Distributor Parker to return the tools to him.  According to Matco’s telephone conversation with Mr. [redacted] today (7/19/2017), Mr. [redacted] has no further complaints and Matco...

considers this matter closed.