Preferred Credit, Inc.

March 9,
Re: *** ***
Case No.: *** (Ref#19-18348-***-5-302)
Our Account No.: ***
Dear Mr***:
Thank you for your correspondence of February 29, 2016, regarding Mr***'s concernsI have taken the opportunity to review this matter and ask that you
include this statement of our position in your department's permanent record
Please note that Preferred Credit, Inc("PCI") is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship
Our records indicate that PCI is financing Mr***'s and his spouse, *** ***'s purchase of a RainSoft home water treatment system from Baltimore Water Treatment, Incof Essex, MarylandAccording to the ***'s agreement, they agreed to finance their purchase by making minimum monthly payments of $beginning January 28,
Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with his/her retail charge agreement was accurate, that he/she understood the terms of the agreement he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationThis verification procedure was conducted with Mr*** on January 4, at 6:pm (CST) and at no time did Mr*** express concern, dissatisfaction or doubt about the terms of his account
Mrand Mrs***'s agreement is similarly constructed to help ensure they understand the financing they are requestingAll relevant terms and conditions are provided with the agreement and separate actions were taken by Mrand Mrs*** to attest to the fact that they not only received a copy of those terms and conditions but that they read and agreed to them as well
The purchase order Mrand Mrs*** executed clearly states that in order to properly cancel the purchase, the ***'s would have had to mail or otherwise deliver written notice of their intent to cancel to Baltimore Water Treatment, Incno later than midnight of the third business day following the execution of the agreement (i.eJanuary 3, 2013)This does not appear to have been done as proof of such notice was never received by the original seller's office nor by our officeMr***'s own correspondence with the Revdex.com seems to indicate that only a phone call was madeBecause Mrand Mrs*** failed to cancel the agreement accordingly, the agreement remains in full force and effect, as intended, upon the ***'s signatures on the agreement and the passing of the appropriate rescission period
Also, because PCI is a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mrand Mrs***'s Rainsoft water softenerTo perfect our security interest in the Rainsoft water softener, we must file what is generally known as a fixture filing (also known as a financing statement)The nature of this security interest and how we go about securing our interest is explained in Section twelve (12), "Security Agreement" of Mrand Mrs***'s retail charge agreementThis provision, in relevant part, states the following:
"You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code)To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..."
This filing will generally be removed upon the satisfaction of the ***'s account
However, on November 19, 2015, our offices received a fax from a Curative Specialist with Boston National Title requesting that we subordinate our UCC-fixture filingOur offices responded on that same date advising Boston National Title of the conditions that must be met in order for us to agree to subordinate our lienWe have received no word since that time but would be happy to review the matter anew should that be necessary
Additionally, the documentation attached to Mr***'s correspondence to the Revdex.com indicates that a representative of Baltimore Water Treatment went to the *** residence on three occasions to service their merchandiseOn two of those occasions, February 2, and March 7, 2014, the representative noted that the ***'s laundry tub was overflowing due to a buildup of grease and food particles in the drain pipeThe representative checked the RainSoft water treatment system and noted the system to be properly workingOver one year later, on Mary 18, 2015, a representative returned to the ***'s residenceThe representative checked the RainSoft water softener system for any leaks and found none and noted that the water in the ***'s basement was caused by the failure of the ***'s hot water heater
Finally, there appears to be some confusion regarding the financing we are providing Mrand Mrs***, our relationship to the original seller and who they pay their water bill toPlease note that all three entities, PCI, Baltimore Water Treatment, Incand W.S.S.Care all wholly separate companies; we share no common ownership direction or controlWe therefore cannot speak as to what has occurred or not occurred between Mrand Mrs*** and the original seller or Mrand Mrs*** and the W.S.S.CWe can however apologize for any misunderstanding that may have resulted in Mrand Mrs***'s interaction with our company including those related to payment posting and fee application as there seems to be herePlease rest assured that we have not applied any fee in excess of those allowed by Mrand Mrs***'s agreement
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

March 28, Re: *** ***-*** Case # *** (Ref#19-18348-***-4-302) Our account # *** Dear Mr***: Thank
you for your correspondence of March 17, I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent recordPlease note that Preferred Credit, Inc(“PCI”) is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship. Our records indicate that PCI is financing Ms***-***’s purchase of a Kirby home cleaning system from Universal Systems, IncAccording to Ms***-***’s contract, she agreed to finance $2,over equal monthly installments of $through her checking account with Western Credit Union by automatic draft with the first payment due July 17, 2015. Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with his/her credit application was accurate, that he/she understood the terms of the retail installment contract he/she signed, that he/she was not a victim of identity theft (including verifying a line of credit), that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationThis verification procedure was conducted with Ms***-*** on May 27, at 9:pm (CST) wherein Ms***-*** was advised of the credit approval and at no time did Ms***-*** express concern, dissatisfaction or doubt about the terms of her accountWith that, the proceeds of the contract were paid to the original sellerAdditionally, on June 9, 2015, our offices sent two letters to Ms***-***One letter congratulated her on her purchase and provided confirmation of her automatic payment arrangementThe second correspondence was a notification of assignment of her contract to our office. Review of Ms***-***’s account reveals that her first installment in July was not honored by her bank due to non-sufficient fundsOver the course of the next four months our office sent six notices and four monthly statements to Ms***-***’s home address advising her of the status of her account. Having received no further payment from Ms***-***, our offices forwarded her account to a collection agency in January PCI’s policy, in regard to credit reporting, is reflective of proper legal and industry standards. PCI is entitled by law to report to the credit bureaus the positive or negative standing of any account established by virtue of the extension of creditIn turn, any credit reporting is indicative of the account’s performance and any misreporting to the credit bureau will be corrected upon valid evidence attesting to the contrary. As no such evidence has been provided by Ms***-*** nor does such exist in our records, we believe Preferred Credit has reported the account’s performance and standing appropriatelyIf Ms***-*** would like to listen to the May 27, 2015, telephone conversation we would ask that she contact our Customer Service Manager, Bridget *** to make the arrangements to listen to the callMs*** is available Monday through Friday from 8am to 5pm (CST) and can be reached at ###-###-####Additionally, our offices will forward to Ms***-*** a copy of the contract she executedShould there be any other questions or concerns, please do not hesitate to contact me at ###-###-####Sincerely, John *** Compliance Manager *** ** *** ***

Initial Business Response /* (1000, 5, 2015/09/28) */
September 28,
Re: *** ***
Case #: *** (Ref#19-18348-***-4-302)
Our account #***
Dear Mr***:
Thank you for your correspondence of September 21, regarding Ms***' concernsPreferred
Credit, Inc(PCI) is pleased to inform Ms*** and the Revdex.com that on September 16, our offices issued a new refund check in the amount of $to Ms*** in an effort to resolve the matterNonetheless, I have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Our records indicate we financed Ms***' purchase of a Kirby home cleaning system from JTEnterprises of Salt Lake City, UtahThis is evidenced by the retail installment contract Ms***' executed on November 9, According to that contract, Ms*** agreed to finance $1,over forty-eight equal installments of $commencing December 30,
Ms***' payment history shows that she was fully engaged in the repayment of her contractual obligationIn fact, because of the timing and amounts Ms*** paid, she has received three refunds from our offices: one in the amount of $(check number 95799) on May 29, 2015, for her early payoff and another two refunds, on June 5th (check number 96051) and July 9th (check number 97133) respectively, in the amount of $because her automatic bill pay continued to make payments to our office
PCI first became aware that Ms*** was having difficulty cashing check number when she contacted our offices on August 7, 2015, nine weeks after the check was issued to Ms***Our next contact with Ms*** occurred on August 16, 2015, when Ms*** forwarded to our office correspondence advising that her bank returned check number to her as it was unable to locate the account our check was issued fromMs*** provided a copy of her bank notice reflecting same
The information provided by Ms*** was reviewed by PCI's accounting departmentOur accounting department concluded there were no errors in regard to check number 95799; our correct bank account was listed and visible on the check that was issued to Ms***However, our accounting department did note that a portion of our bank account was not visible on the return check provided by Ms***' bankA PCI customer service representative spoke with Ms*** on August 19, and conveyed this information and advised Ms*** to re-present the check to her bank and ask them to rerun itWe also asked Ms*** to contact our office while she was at her bank if they had any difficulty in cashing the check so that we might speak directly to her bank
Ms*** contacted our offices next on September 8, and advised that she continued to encounter difficulty in cashing check number In an attempt to resolve the issue for Ms***, PCI's Customer Service Operations Assistant Manager, Megan Hedman, offered to make an ACH deposit of $in to the account information we had on file for Ms***After confirming her banking information, Ms*** provided the authority to proceed with the ACH deposited and MsHedman advised Ms*** that the money would be available to her on September 14,
Unfortunately, when PCI's account department attempted to process the ACH they determined that they were unable to complete the transaction as the account information we had on file for Ms*** had been set up as a "bill pay" through her bankTherefore, PCI was unable to access the necessary information to complete an ACH to that accountUpon realizing this, our office immediately called Ms*** and advised her of the situation apologizing for the inability to complete the ACH transaction and offered to forward to her a new refund checkOn September 16, 2015, our offices issued check number for the amount of $to Ms***
Lastly, we note that Ms*** was able to successfully cash, without incident, the two other refund checks that were previously forwarded to herThese checks were drafted from the same account that check number was drawn uponThis, combined with the fact that check does not contain any errors only reinforces our opinion that the issue rests with Ms***' bank
Nevertheless, as we are not without sympathy for Ms***' situation, we have re-issued a new check in hopes that this new refund check will resolve the matterWe therefore will not be refunding any additional moneys and, as a result, consider the matter closed
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

October 3, Re: *** *** Case ID: *** Our Account No.: *** Dear Mr***:
Please accept this correspondence in confirmation of the payment arrangement for *** ***’s account Preferred Credit, Incis willing to agree to monthly payments of $on Mr***’s account without reporting his account delinquentPCI is also willing to waive all late fees currently on Mr***’s account once Mr*** has paid the remaining amount of $288.50, either through monthly installments of $or in a lump sum, to satisfy his total amount financed Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John *** Compliance Manager

Initial Business Response /* (1000, 5, 2015/12/23) */
December 23,
Re: *** ***
Case # *** (Ref#19-18348-***-4-302)
Our Account No.: ***
Dear Mr***:
Thank you for your letter of December 17, regarding Mr***' concernsI have taken the
opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Our records indicate that Preferred Credit, Incfinanced Mr***'s purchase of a Kirby home cleaning system from All Star Marketing of Fremont, CaliforniaThis is evidenced by the credit application and retail installment contract executed by Mr*** on February 18,
According to the contract he signed, he agreed to a minimum monthly payment of $due on the 20th of each month commencing May 20, 2010, until paid in fullA review of Mr***'s account file indicates that he had in fact complied with these requirements and had even paid off his account early with his account being closed on March 25,
However, our investigation has been unable to find any errors in our credit reportingIn fact, we have been unable to find any reporting on Mr***'s account at all
In light of this fact, we request the help of Mr***We ask that Mr*** please provide us with a detailed account of the information he is disputing and all supporting documentation or other relevant information reasonably required to substantiate his dispute (e.ga copy of the relevant portion of the consume report that contains the erroneous information, etc.)With that, we will be able to identify whether any issues exist in our credit reporting
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/12/24) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I viewed my credit report again and noticed that you deleted all information regarding my account with your from my reportsI can no longer even see my credit history with you in my reports, thus providing seeming credibility to your contention that you never reported my credit with you to the agencies
However,I filed a dispute with Experian as soon as I saw your bad reporting, and I am including a screenshot of the result of that disputeContrary to your contention that you didn't report my credit with you, the dispute results clearly show that information regarding an account with you was indeed present but has been deletedIf you never reported my credit history, why does it show as being deleted?
The report number of the dispute with Experian regarding your reporting is:
Still, I am requesting a hardcopy letter from PCI stating that I paid my debt each month on time and closed out the account early by paying in full including the date of account closure -- something I never received from youFurthermore, I'd like to receive documentation showing the total amount borrowed as well as the total amount I paid to you after all payments were madeConsidering I was a good customer who paid on time, as you yourself state, and considering the hardship I've gone through due to your mistake, this isn't an unreasonable requestThank you
Final Business Response /* (4000, 9, 2015/12/31) */
December 31,
Re: *** ***
Case # *** (Ref#19-18348-***-8-3100)
Our Account No.: ***
Dear Mr***:
Thank you for your correspondence of December 28, 2015, providing Mr***'s comments regarding our initial responsePlease include this statement of our position in your department's permanent record
First, we wish to take this opportunity to thank Mr*** for providing the requested informationIt has been helpful in investigating the issues underlying Mr***'s concerns
In our initial response to Mr*** we informed Mr*** that we were unable to find any reporting on his account with the credit reporting agenciesWe therefore asked Mr*** to provide that information so that we could conduct our investigationIn so doing our subsequent investigation indicates that on December 7, our office updated Mr***'s reporting to reflect that his account was paid in fullHowever, we had made no request to delete our credit reporting
Rather, it appears the credit reporting agencies themselves appear to have taken independent action on Mr***'s credit report based on Mr***'s credit disputeThis explains why we were unable verify what we may have reported to the credit reporting agencies regarding Mr***'s account when we were conducting our initial investigation in response to Mr***'s dispute filed with the Revdex.com - the deletion occurred prior to our investigation
Second, we also wish to take this opportunity to inform Mr*** that we will be sending the information he has requestedWe therefore believe the matter to be closed
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

Initial Business Response /* (1000, 6, 2016/02/02) */
February 2,
Re: *** ***
Case# *** (Ref#19-18348-***-4-302)
Our account # ***
Dear Mr***:
Thank you for your correspondence of January 25, 2016, regarding Mr***'s concernsI have taken the
opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
First and foremost, Preferred Credit, Inc("PCI") is a great supporter of our military and its service membersWe understand that there is a great deal of sacrifice borne by our service men and women and we are thankful for their sacrifice
Please note that Preferred Credit, Inc("PCI") is a regulated lender whose business is limited to the purchase of sales finance contracts and receivables from third-party independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship
Prior to the assignment of any such sales finance contract and receivable, PCI verifies with the consumer that the information the consumer provided in applying for credit was accurate, that he/she understood the terms of the consumer sales finance contract he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase, that he/she received a copy of the financing paperwork and that the original seller fulfilled all of the promises made during the presentationThis account verification process was completed in the case of Mrand Mrs*** on September 13, 2014, with Mrs***At that time, Mrs*** did not express any concern, dissatisfaction or doubt about any of the aforementioned
The ***'s contract is similarly constructed to help ensure they understand the financing they are requesting in accordance with applicable state and federal lawOn the first page, under the heading "Federal Truth in Lending Disclosures," the ***'s were provided with the basic terms of the contract they executed - the amount they are financing (i.ethe Amount Financed), the amount in interest that they would pay should they take their contract to term (i.ethe Finance Charge), the total dollar amount they would pay should they take their contract to term (i.ethe Total of Payments), the total cost of the purchase (i.ethe Total Sale Price) as well as the applicable interest rate (i.eAnnual Percentage Rate)Additional terms, including those related payment, default, and prepayment were disclosed elsewhere in the contract along with all other relevant terms
Despite numerous conversations with our office and receiving monthly statements which indicate the balance owed each month, it was not until Mr*** filed this complaint with your offices that PCI was made aware that Mr*** had any concerns regarding the original sale or financingMr***'s correspondence to your office is in direct contradiction to both his and Mrs***'s earlier representations to PCI as well as the terms of the contract they both executed (i.ethey agreed to finance $1,over thirty-six (36) equal monthly installments commencing November 1, 2014)
Please note that through the use of policy, procedure, internal controls, training and auditing, our business operations have been structured to ensure that our account servicing meets all business and legal standardsMoreover, our account servicing is routinely reviewed through regularly scheduled examinations by the regulatory authorities under which we operateWe therefore stand by the accounting on the ***'s account
Additionally, please also note that PCI simply does not have sufficient information with which to either confirm or deny the assertions made by Mr*** regarding certain representations made by the original seller given our third-party statusTherefore, we will be unable to confirm or deny that the original seller represented to Mr*** that he could buy the product the sales person used to "model the job with for half the price after financing."
We thank Mr*** for his business and we hope we were able to bring further clarity to this matterAdditionally, we will forward to Mr*** a copy of his contract and payment history for his reviewIf he finds the information to be inaccurate, we would ask that he provide us with a detailed account of the information he disputes, the reason he believes it is incorrect and all supporting documentation or other relevant information reasonably required to substantiate his dispute
However, should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John Olmscheid
Compliance Manager

Initial Business Response /* (1000, 5, 2015/08/17) */
August 17,
Re: ***
Case #*** (Ref#19-18348-***-4-302)
Our account # ***
Dear Mr***:
Thank you for your letter of August 14, regarding Ms***'s concernsPreferred Credit, Inc
(PCI) has cancelled Ms***'s automatic payments and while we are not without sympathy for Ms***'s situation we are unable to accommodate her request to refund her for bank fees she may have incurredHowever, we do believe we can find an amicable resolutionI have therefore taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Our records indicate we are financing Ms***'s purchase of a Rainbow home cleaning system from NSTC, LLC of Joplin, MissouriThis is evidenced by the retail installment contract completed and executed by Ms*** on May 11,
Our records also indicate that, in conjunction with her retail installment contract, Ms*** completed and executed an "Authorization for Preauthorized Payments." According to the terms of Ms***'s authorization, Ms*** authorized Preferred Credit to draft payments from her banking account in the amount of $on the 11th of each month until "PCI is paid in full, or PCI and Bank/Financial Institution have received written notification from me of its termination at such time and in such a manner as to afford PCI and Bank/Financial Institution a reasonable opportunity to act on it." Ms***'s understanding of these terms were verified initially during our account verification process and further confirmation of these terms were sent to Ms***'s home by correspondence dated May 26,
Preferred Credit first became aware of Ms***'s interest to stop her automatic payments when Ms*** contacted PCI on August 11, at 5:p.m(CST)At that time, Ms*** was advised that the payment request had been sent to her bank earlier that day and was reminded of the cancellation procedures regarding her automatic payment authorization
Our next contact with Ms*** came on August 13, at 10:a.m(CST)Ms*** advised that the automatic payment attempted on August 11, will come back as insufficient funds and requested that we do not attempt a redepositMs*** was advised that we could not stop the redepositPCI received written notification via facsimile from Ms*** cancelling her automatic payments at 11:p.m(CST) on August 13, Pursuant to the Authorization for Preauthorized Payment Ms*** executed, our offices cancelled Ms***'s automatic payments
Nevertheless, in the spirit of compromise, PCI will waive the redeposit fee stemming from Ms***'s dishonored August paymentPreferred Credit believes this to be a fair resolutionShould you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

Initial Business Response /* (1000, 5, 2015/10/28) */
October 28,
Re: *** ***
Case No.: Case# *** (Ref#19-18348-***-4-300)
Our Account No.:***
Dear Mr***:
Thank you for your correspondence of October 23, 2015, regarding Mr***'s concernsI have taken the
opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Please note that Preferred Credit, Inc(PCI) is a sales finance company incorporated in the State of Minnesota and licensed in the states that we do businessOur business is limited to the purchase of sales finance contracts from third-party, independent sellers or various household goods
As an assignee lender, our business practices have been structured to ensure that any consumer PCI provides financing for understands the original sale, their underlying debt obligation as well as the financing relationshipThis is accomplished through an industry leading customer verification system that is designed, in part, to ensure we have the correct consumer information, to ensure we have the correct contract terms and to ensure we have a legally valid and binding contract
Our records indicate that Mr*** sought to purchase a Rainbow home cleaning system on December 22, Electing to finance his purchase, Mr*** sought financing by completing a credit application and retail installment contract that same dayAccording to the contract he signed, Mr*** agreed to finance $2,over thirty-six (36) equal installments of $due on the 22nd of each month commencing March 22, However, it also included a 12-month, same-as-cash option which would allow Mr*** to avoid paying any finance charges if her properly exercised this option prior to the expiration of the 12-month, same-as-cash period
On January 12, 2015, a PCI account representative spoke with Mr*** to verify that the information Mr*** provided in his credit application was accurate, that Mr*** understood the terms of the contract, that the payments fit into his monthly budget, that Mr*** was not a victim of identity theft, that Mr*** was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationAt no time during this call did Mr*** express concern, dissatisfaction or doubt about the terms of the contract he signed, including his same-as-cash optionWe subsequently informed Mr*** he had been approved for financing
On January 30, 2015, as part of our quality assurance program, our offices called Mr*** to review his account and payment arrangementAt that time the agent advised Mr***, incorrectly, that our records indicated that he was not currently not set up for automatic payment but rather was set up to receive statements in the mailOur agent asked Mr*** if he would rather sign up for automatic payments, to which Mr*** advised he would rather receive statements in the mail
Mr***'s election to not want automatic payments but rather to receive statements had certain negative consequencesFirst, it served to effectively revoke his automatic payment authorization that was originally authorized with his application and ultimately verified on January 27, with Mr*** as he was unable to complete that verification during our initial verify callSecond, when his March statement was sent, and no payment was received by his first due date, Mr***'s same-as-cash option ceased as well as he failed to make his regular monthly installment during the promotional period in accordance with the terms of the same-as-cash option disclosed in his contract
Following Mr***'s missed March installment, our offices made attempts to alert Mr*** to the fact that he had missed his first installment in hopes that he could avoid late fees and other adverse consequences on his accountOn March 27, 2015, Mr*** returned our call and we advised him of his missed March installmentOur customer service representative also inquired if Mr*** wanted to set up a new payment arrangement at that time to which Mr*** responded "no," and advised that he would call back to set up a payment arrangement
Twenty-six days later, on April 22, 2015, Mr*** contacted our offices and set up a payment arrangementMr*** inquired if any late fees incurred could be waived and if the 12-month, same-as-cash option was still in effectOur customer service representative discussed Mr***'s concerns with her supervisor and spoke with Mr*** on April 27, and advised that PCI would honor the same-as-cash option and that the waiver of the late fees would need to be addressed at the time the same-as-cash option ends in December
Mr*** first contacted our offices regarding his credit reporting concerns on October 22, At that time, we reviewed the history of Mr***'s account and confirmed that at the time of Mr***'s March installment was due, he was not enrolled in an automatic payment arrangement (per his request on January 30, 2015) and though our offices provided him sufficient notice of the missed installment to avoid late fees and negative credit reporting, Mr***'s installment was not received in a timely mannerThis was true despite Mr***'s additional contentions that he set up a separate automatic payment arrangement in February at his local Rainbow dealer's office with one of our agents
Nevertheless, we value Mr*** as a customer and we appreciate his dedication to honor his contractual obligationsPCI will therefore correct the past due credit reporting regarding Mr***'s March installment as this reporting was due, in part, to an error on our partThis will be taken care of in an expedited manner
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/10/29) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I appreciate the company honoring their word and removing the negative mark from my credit reportThe response is appreciated, but has several inaccuraciesI was never given an option of receiving statements in the mail instead of automatic draftsI did receive a quality assurance call and was asked for my account information at that timeI did not have it with me as I recently switched banks and needed to call backI spoke with a representative of Preferred Credit when I was at the office of Yadkin Valley Distributors in early February and set up my monthly draftThis was all confirmed by management at Preferred Credit when I contacted them on Oct 23rdI was contacted a week later in February to again confirm my account informationOver a month later I was informed of the missed paymentI was also informed that my same as cash option had been revoked and I was being penalized with a late paymentIt took weeks to get this resolved with your companyI had to get Yadkin Valley Distributors involved to fix the issueAfter conversations between Preferred and Yadkin Valley Distributors I was told my same as cash option was placed back in effect and that there would not be a missed payment reported to my credit bureausThe response you have given is completely different than the conversation I had with a manager of Preferred (Nick) last weekI am happy that you have agreed to removed the missed payment (as promised in April) from my report, but disappointed in the way this has been handled from the conversation with Nick last week, to the incorrect information in your response to the Revdex.comI was contacted by the distributor to join their team and market their products, but I can not in clear conscience offer financing from a company that has this type of business model and treats their customers poorlyAgain, thank you for your responseI will continue to honor my obligation as I have through our entire contact and once it is fulfilled we will go our separate ways

Initial Business Response /* (1000, 5, 2015/08/18) */
August 18,
Re: ***
Case # *** (Ref#19-18348-***-4-302)
Our Account No.: ***
Dear Mr***:
Thank you for your letter of August 11, regarding Ms***' concernsI have taken the opportunity
to review this matter and ask that you include this statement of our position in your department's permanent record
Our records indicate that PCI financed the purchase of a Kirby home cleaning system from Great Plains Team, LLC of Topeka, Kansas for *** *** and *** ***, n/k/a *** ***Mr*** and Ms*** completed an application for credit and entered into a retail installment contract on April 17, According to the contract they signed, they agreed to a minimum monthly payment of $due on the 1st of each month commencing June 1, 2011, until paid in full
A review of Mr*** and Ms***' payment history reflects that they were fully engaged in the repayment of their obligationUnfortunately, however, their payment history also reveals that three separate monthly installments (January, February and March 2015) were not made in a timely manner resulting in late payment reporting on their credit bureau reports, and, three others (September 2012, November 2012, and December 2014), were returned as dishonoredFortunately, Mr*** and Ms*** were able to bring their account up to date and payoff their account in April of An additional payment was made in May and refunded as noted in Ms*** correspondence
Further review of Mr*** and Ms*** account also reveals that our offices attempted to contact Mr*** and Ms*** regarding their past due accountUnfortunately, however, no telephone number we had on record proved viable as each number was either disconnected, no longer a good number to reach them at or would no longer accept incoming callsMoreover, we received returned mail at the address provided by Mr*** and Ms*** for contact purposesDespite our attempts, we had no contact with Ms*** from November 15, through April 28, 2015, when Ms*** finally called our offices to discuss the status of her account and to update us on her current address
Lastly, our records reveal that Ms*** contacted our offices on August 8, as noted in her correspondence to youOur notes regarding the conversation reflect that Ms*** inquired if we would change our credit bureau reporting on her account as she and Mr*** were now divorced and Mr*** was responsible for the repayment of the obligationMs*** was advised by PCI Collection Supervisor, Cassie ***, that both Mr*** and Ms*** are each liable for the outstanding debt as each of them signed the contract and that no reporting would be changed as PCI must report accurately to the credit reporting agencies the history on the account as it relates to both Mr*** and Ms***
Currently, Mr*** and Ms***' account is reported as "paid in full." Should Ms*** have evidence that her payments were made on time, we ask that she forward that documentation to our office and PCI will make any necessary correction immediately
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/08/18) */
(The consumer indicated he/she DID NOT accept the response from the business.)
These were unusual circumstances:
We were both unemployed
My ex-husband was released involuntarily from the military due to physical disability
I contacted PCI immediately upon finding out the account was deficient
Final Business Response /* (4000, 9, 2015/08/20) */
August 20,
Re: ***
Case # *** (Ref#19-18348-***-4-302)
Our Account No.: ***
Dear Mr***:
Thank you for your correspondence of June 3, We are sorry to hear that Ms*** did not accept our initial responsePlease include this statement in your department's permanent record
While we are not without sympathy for Ms*** or the circumstances which precipitated in having her account go past due, we are simply unable, at this point in time, to accommodate her request as our legal obligations under the Fair Credit Reporting Act prevent us from doing so
Please recall that despite our best efforts we had received no contact or communication with Mr*** or Ms***Had we been able to, we may have been able to prevent the situation that Ms*** finds herself in now as we have programs specifically designed to help people that find themselves in a difficult financial situationWe regret that this did not occur
Please also recall that the Fair Credit Reporting requires all creditor who report to the credit reporting agencies to accurately report the status and performance of the accountOur records indicate the Mr*** and Ms*** had failed to make timely payment when requiredWhen and where this occurred had been reported to the credit reporting agencies accordinglyAs there does not appear to be any facts to support that the account performed otherwise, the Fair Credit Reporting Act obligates us to report what in fact occurred
However, all hope is not lostAs Mr*** and Ms*** were able to bring their account current, and ultimately pay off their account, we have been able to report these favorable developments to the credit reporting agenciesIn fact, we have been reporting Mr***'s and Ms***' account as "paid in full" since May of
Should there be any further questions or concerns, please do not hesitate to contact our offices
Sincerely,
John ***
Compliance Manager

Initial Business Response /* (1000, 5, 2016/01/28) */
January 28,
Re: *** ***
Case No.: *** (Ref#19-18348-***-4-302)
Our Account No.: ***
Dear Mr***:
Thank you for your correspondence of January 27, 2016, regarding Ms***'s concernsI have taken the
opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Please note that PCI is a regulated sales finance company located in StCloud, MinnesotaAs such, our business is limited to the purchase of retail installment contracts and other forms of indebtedness from independent sellers of various goods
As a regulated sales finance company, our financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirementsHowever, we have not developed these programs to merely meet applicable state and federal regulationsRather, we have in addition tailored our programs in light our experiences as an indirect lender to better serve the individuals and markets we serveThis means we make special effort to manage our relationship with our customers as it is in the interests of both Preferred Credit, Incand the customer that payment is made on a timely basis as non-timely payments result in late fees and adverse credit reporting
A review of Ms***'s account file reveals that her November installment was not honored by her bank for non-sufficient funds and her December payment was received late
We attempted to reach Ms*** as a result in order to remind Ms*** of her past due payment, to alert Ms*** as to the current status of her account, to determine if payment would be forthcoming and whether Ms*** would like to make payment arrangements so Ms*** could avoid late fees and/or adverse credit reporting
Nevertheless, please note that we have removed Ms***'s account from our calling queues
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2016/01/29) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I agree but I had made payment arrangements in just confused why it not loggedI going pay $next month to get up to date with everythingOther than that I appreciate honouring my request

Initial Business Response /* (1000, 5, 2016/02/11) */
February 11,
Re: *** ***
Case No.: Case# *** (Ref#19-18348-***-4-302)
Our Account No.: ***
Dear Mr***:
Thank you for your correspondence of February 4, 2016, regarding Ms***'s concernsI have taken
the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Preferred Credit, Incconsiders ourselves to be a relationship-driven companyIt is for this reason that we have developed systems, processes and protocols to help ensure the best possible experience and level service for our customersThese efforts include:
The maintenance of a customer verification system which serves to not only help protect prospective customers against the potential of identity theft and fraud but also helps ensure our customers understand their underlying debt obligation and our financing relationship;
The maintenance of an account management system that is designed to help alert our customers to due dates, changes in account status, and other important account information in order to help prevent adverse credit reporting and fee application;
The maintenance of a diverse set of communication methods that allows our customers to choose the method of communication that is most convenient to them whether that be by phone, fax, email and mail; and
The maintenance of a diverse set payment methods that allows our customers to choose the method of payment delivery that is most convenient to them whether that be by automatic withdrawal, over the phone, online, via Western Union or MoneyGram or by mail
It is unfortunate then to hear that despite all our efforts to make it easy for our customers to work with us that this was not the experience of Ms***
We have therefore reviewed Ms***'s account in its entirety and researched the possible causes for the disputeWe believe Ms***'s displeasure is due in part to the circumstances surrounding her account:
Ms***'s first payment was due in May of By July, Ms*** requested that we limit our contact with her
Because our contact was limited, communication was largely limited to emailsThis is unfortunate as Preferred Credit, Incconsiders email communications as an unsecure form of communication and therefore limits the nature of those communications so as to help protect against the potential of identity theft and fraud
This limited ability to communicate may have then contributed to Ms***'s failure to make payment when payment was due as her account was ultimately charged off due to nonpayment in October of The charge off of an account also changes the dynamic of our interaction with our customers as all regular account servicing ceases including access to our online payment system
We therefore regret these circumstances as they appear to have contributed to the present situation and the filing of this dispute
Nevertheless, as a relationship-driven company we wish to do right by Ms***We are therefore willing to waive all fees and $1,in principal and interest to settle Ms***'s accountShe need only then send in $to our offices and we will consider the account settled in full
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

Initial Business Response /* (1000, 5, 2016/02/11) */
February 11,
Re: ***
Case No.: Case# ***
Our Account No.:***
Dear Mr***:
Thank you for your correspondence of February 3, 2016, regarding Ms***'s concernsWe wish to take this opportunity to
thank Ms*** for bringing this matter to our attention and for the opportunity to formally address her concerns in turn
Preferred Credit is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household productsAs such, we are examined on a regular basis regarding our financing operationsThese examinations verify Preferred Credit's compliance with applicable state and federal regulations including how interest accrues and payments are applied on retail installment contractsPlease rest assured that all accounting on Ms***'s account was accurate
Ms***'s concerns appear to have begun on January 28, when she noticed that her payment, which apparently was sent on January 21st, had not yet cleared her bankMs*** subsequently contacted our offices to find out whyOn that date our agent, on or around 2:25pm, informed Ms*** that we had not yet received her paymentMs*** was similarly informed of this fact when she called back later that day on or around 5:30pm
Ms*** followed up with our offices a couple of more times regarding the payment she sent on January 21, on February 1, On or around 8:54am, Ms*** spoke with our agent regarding the status of her accountMs*** advised our office that she had placed her January installment in the mail on January 21, Our agent, reviewed Ms***'s account and advised that her account did not reflect receipt of that paymentMs*** advised Ms*** that she intended to "cancel" the check with her bank and requested that should our offices receive the check she mailed on January 21, 2016, that we not present it for paymentOur agent advised Ms*** that our offices would present any check received for paymentA similar conversation took place on or around 9:31am with Ms*** however at that time Ms*** authorized a one-time payment in the amount of $which included payment of $for the late fee associated with her January installment
On February 2, 2016, Ms*** contacted our offices and advised that her bank had notified her that the check she mailed January 21, 2016, and made payable to PCI had been presented for payment and clearedMs*** requested a refund of the $payment she had madeAt that time Mr*** informed Ms*** of our payment policies and that no refund would be forthcomingHowever she did advise Ms*** that the additional payment would be applied to Ms***'s February installment
Nevertheless, because we are a relationship-driven company, PCI will waive the January late fee of $and refund her payment of $
Should there be any other questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager

(The consumer indicated he/she DID NOT accept the response from the business.)
Mr John ***, I read your email and did not agree in whole with youI have copies of bank draft from Sun trust that I had sent for your weekend late feesThis is when your company charge $when the 28th of the month charge days falls on a weekendYour company stopped my house refinancing in December, and I've obtained a copy of the Lien you put on my house without rightI personally spoke to your supervisor on the phone and he told me the machine is part of my house, because of these, my refinancing was stoppedMr John, look at this scenerio; WSSC charged $230,Preferred Credit is $for this month alone for seniors, we have spent about $on water aloneThis is not what the contract is inclusive of, because from the contract, this treatment is suppose to lower our water bill and electricity, but none is happeningWe were deceived into this contract and I will pay the penalty for early terminationI hope Revdex.com will be able to help before I proceed to further legal actionThis is a joint-slaughter because the one company push us to the other company

Initial Business Response /* (1000, 5, 2016/02/24) */
February 24,
Re: *** ***
Case #: *** (Ref#19-18348-***-4-302)
PCI Account #: ***
Dear MrLewis:
Thank you for your letter of February 17, regarding Mrs***'s concernsI have taken the
opportunity to review this matter and ask that you include this statement of our position in your department's permanent record
Our records indicate that Preferred Credit, Inc(PCI) financed Mrand Mrs***'s purchase of certain Filter Queen merchandise from Cyclonic Filtration, LLC of Ames, IowaThis is evidenced by the retail charge agreement and associated purchase order they completed and executed on October 7, to which they agreed to make minimum monthly payments of $by the 7th of each month
Please note that Mrand Mrs*** also executed an authorization for preauthorized payments at that same timeAccording to the terms of the authorization the ***'s executed, PCI was to draft their minimum monthly payment from their bank account on the 7th of each monthPCI subsequently sent confirmation of this arrangement to the ***s for their review on October 20,
PCI first became aware of the ***s' concerns on December 7, when Ms*** contacted our offices to discuss the payment arrangement on her accountOne of our Customer Service Supervisors reviewed the account with Ms*** informing her that the paperwork she completed indicated that the both the due date as well as the date from which we would draw her monthly payment was the 7th of each monthMoreover, that neither Ms*** nor Mr*** notified our offices that this was incorrect (despite having received confirmation of their arrangement and two previous statements)Nevertheless, our Customer Service Supervisor informed Ms*** that she would review our account verification call to determine whether the ***s had in fact requested a change to their due date and would inform them of the results of that review
Ms*** followed up with our offices regarding her account on January 24, Again, Ms*** spoke with a Customer Service Supervisor regarding the activities on her account including the application of a late fee from DecemberOur supervisor informed Ms*** that they would need to review the phone call from December 7th to determine whether a late fee was appropriate and would then inform her whether or not the late fee was waived
Ms*** then followed up with our offices on February 3, inquiring as to whether her account was currentMs*** was informed at that time that the late fee from December had been waivedMs*** was also informed at that time that we would be unable to remove our negative reporting for December as no payment was received for that month (Ms*** placed a stop payment on our draft scheduled for December 7th and failed to make any subsequent payment to make up that payment in a timely manner)
Nevertheless, consistent with the ***'s request, we will be requesting the credit reporting agencies to remove all derogatory marks on the ***'s credit bureauPlease note that the reporting agencies may take up to days or longer to update their reports and that this is beyond our controlWe therefore consider the matter closed
Should there be any other questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
John ***
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2016/02/24) */
(The consumer indicated he/she ACCEPTED the response from the business.)
As long as the credit report does not reflect a late payment on this account, I will accept the responseHowever, I would like to point out that I had given them permission to take the payment out on the 15th and that I would be placing a stop payment on the one for the 7thBut that is relatively irrelevant now since my request was resolvedThank you for your attention to this matter

Initial Business Response /* (1000, 5, 2015/05/22) */
May 22,
Re: Charles ***
Revdex.com Complaint # ***
Our account # ***
Dear Mr***:
Thank you for your letter of May 13, regarding Mr***'s concernsI have taken the opportunity to review this matter and ask
that you include this statement of our position in your department's permanent record
Preferred Credit, Inc(PCI) is a third-party regulated lender that finances the sale of various consumer goods by independent sellersAs a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mr***'s Rainsoft water softener
To perfect our security interest in the Rainsoft water softener, we must file what is generally known as a fixture filing (also known as a financing statement)The nature of this security interest and how we go about securing our interest is explained in Section twelve (12), "Security Agreement" of Mr***'s retail charge agreementThis provision, in relevant part, states the following:
"You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code)To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..."
This filing will be removed upon the satisfaction of Mr***'s account
In review of Mr***'s file it reveals that our office received authorization from Mr*** to speak with his mortgage company regarding Mr***'s accountOn April 23, 2015, at 10:a.m(CST) PCI representative *** spoke with Mr***'s mortgage companyMr*** advised at that time Mr***'s account did not meet the qualifications for PCI to remove or subordinate the UCC-fixture filing and informed the mortgage company of the factors that made Mr***'s account ineligibleOne of those factors included the delinquent status of the account - Mr***'s account was past due in the amount of $Mr***'s account also had a high balance and it lacked a consistent monthly payment historyThe mortgage company was informed of these factors during the conversation and was told that if payment of $2,was received, and Mr*** agreed to automatic withdrawal for the remainder of his obligation, PCI would re-evaluate their account but nothing could be done about the UCC-filing at the present time
It is common practice for mortgage companies to add an indebtedness, such as this, to the mortgage thereby satisfying the note which will release the UCC-Perhaps this is an option Mrand Mrs*** can explore with their banker as an alternative option mentioned aboveAn added benefit of this option to Mrand Mrs*** is that mortgage rates are often lower than what we can offer, therefore ultimately saving them money on interest
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
***
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/06/03) */
(The consumer indicated he/she DID NOT accept the response from the business.)
We have made our payments every month in full since we have had this accountYes, we have been making the payments later than the 1st when they are due but the payment plus the late fee is paid in full every month for that monthWe are trying to refinance our home to get on track with our finances and this request from PCI is causing us more hardshipWe will agree to the automatic withdrawal but we do not have 2,if we did we would not have late payments and the account would be paid down
Final Business Response /* (4000, 9, 2015/06/04) */
June 4,
Re: Charles ***
Revdex.com Complaint # ***
Our account # ***
Dear Mr***:
Thank you for your correspondence of June 3, We are sorry to hear that Mr*** did not accept our initial responsePlease include this statement in your department's permanent record
While we commend Mr*** for making regular monthly payments and taking care of any fees incurred, we are unfortunately unable to restructure Mr***'s account in the manner Mr*** requests under the present circumstancesWe therefore encourage Mr***, as we have previously, to work with his bank to address the matter
Nevertheless, please note that we are still willing to work with Mr*** according the guidelines we provided previouslyIf Mr***, in a show of good faith, is able to pay at least $towards his account, and agreed to automatic withdrawal for the remainder of his obligation, we would file the appropriate documents to remove our UCC-fixture filing
Should you have any questions or concerns, please do not hesitate to contact me at (320) ***
Sincerely,
***
Compliance Manager

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 rejecting this response because:
They out right lied in their responseAfter the initial phone call The supervisor on duty, a woman named Chandler, said she would contact the accounting department and call me back to resolve the issueI was NOT told the accounting department had left for the dayIn fact I received no response on to how they were proceedingWhich led to my second phone call, where I again talked with ChandlerAt that point I was told the accounting depart had already left that previous FridayTo which I responded, saying don't you think if you fraudulent took an extra $from an account and you couldn't resolve it that day you would call back as you had stated to inform someone of what was going on? She agreed that she should have notified meHer manager contacted me at approximately 8am to resolve the issue and inform me they would next day my moneyPreferred Credit records their phone calls so it is in their audio records....if they actually reviewed the information with this case they would easily be able to find I was not informed of any action they were taking until MY second phone call.The improper billing is also falsely described accountOn the bill they sent me they showed the payment of 3110.00, that the interest was waived but still applied...oddly enough the was more than the bill with the interestSo if their billing department was able to show they processed on April 13th on the bill they sent, it is a little odd that they would send a bill that had a total owed amount of less than the paid amount listed on the billIt did not show the $credited back at the end of AprilFurthermore they are a financing companyErgo basic accounting should not be difficultLet alone repeated, fraudulent actionsLet's take this from a statistical point of viewThe odds that any company fraudulently takes an additional $from a check is exceedingly lowNow take a company that incorrectly send out a bill after they credited the account paid in fullAlso exceedingly rareNow have a client that disagreed with their dishonest business practices, then paid the bill in full have two exceedingly rare occurrences happen weeks apartNow said company is a financing company so these occurrences should be even less Preferred Credits total response is a fraudulent narrativeThis only supports their dishonest, predatory lending practices

Initial Business Response /* (1000, 6, 2016/02/19) */
February 19, 2016
Re: [redacted]
Case # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account #[redacted]
Dear Mr. [redacted]:
Thank you for your letter of February 17, 2016 regarding Ms. [redacted]'s concerns. I have taken the opportunity to...

review this matter and ask that you include this statement of our position in your department's permanent record.
First and foremost, Preferred Credit, Inc. ("PCI") believes Ms. [redacted] to be a wonderful customer and we thank her for her business. With Ms. [redacted]'s recent payment on February 18, 2016, her account is closed and paid in full with a zero balance.
Our records indicate that PCI financed the purchase of a Kirby home cleaning system from Lionheart Investment of San Antonio, Texas for Ms. [redacted]. On September 16, 2015, Ms. [redacted] completed an application for credit and entered into a retail installment contract. According to her contract, Ms. [redacted] agreed to repay the total of payments over 36 installments of $51.55 due on the 16th of each month commencing December 16, 2015. Ms. [redacted]'s contract reflects that the original seller offered Ms. [redacted] a three month deferral until her first installment.
Please note that PCI is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household products. As such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship.
Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with his/her application was accurate, that he/she understood the terms of the contract he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentation. This verification procedure was conducted with Ms. [redacted] on September 17, 2015 at 1:05 p.m. (CST) and at no time did Ms. [redacted] express concern, dissatisfaction or doubt about the terms of her contract. Had there been any issue with the nature of the financing she was requesting, we would have clarified that matter with Ms. [redacted] and the original seller at that time. Our records indicate this to not be the case.
Our account verification program helps ensure, in part, that Ms. [redacted] understood the terms of her financing as well as the fact that she received a copy of those terms. Ms. [redacted]'s contract is similarly constructed to help ensure she understands the financing she is requesting in accordance with applicable state and federal law. On the first page, under the heading "Federal Truth in Lending Disclosures, Ms. [redacted] was provided with the basic terms of the contract she executed - the amount she is financing (i.e. the Amount Financed), the amount in interest that she would pay should she take her contract to term (i.e. the Finance Charge), the total dollar amount she would pay should she take her contract to term (i.e. the Total of Payments), the total cost of the purchase (i.e. the Total Sales Price) as well as the applicable interest rate (i.e. Annual Percentage Rate). Additional terms, including those related payment, default, and prepayment were disclosed elsewhere on the contract.
Review of Ms. [redacted]'s payment history reveals that we received payment totaling $1,474.71 (three monthly installments of $51.52 and a payment of $1,320.15 on February 18, 2016). Ms. [redacted] contacted our offices on February 3, 2016 and received a payoff quote of $1,369.09 which represented the principal balance of $1,320.00, plus $49.09 in interest accrued. Ms. [redacted] contacted our offices again on February 16, 2016, and received a payoff quote of $1,371.67 which represented the principal balance of $1,320.00, plus $49.09 in interest accrued and $2.58 in late fees. However, our agent, Nicholas [redacted], advised Ms. [redacted] that he would reduce the payoff amount to $1,320.15 due to an installment that was due to run that same date. As a result, Ms. [redacted] authorized a one-time ACH payment of $1,320.15 to be ran on February 18, 2016 to pay her obligation in full.
The prepayment provision in Ms. [redacted]'s retail installment contract discloses both how interest accrues as well as how it is earned. In precomputed retail installment contracts, the type of contract Ms. [redacted] entered into, interest accrues according to a predetermined amortization schedule which in turn is a function of the applicable interest accrual method (in this case the Rule of 78s method). Finance companies, like PCI, then earn interest on precomputed accounts on a monthly basis according to this predetermined schedule. Therefore, if a precomputed account has been open for 24 of the 36 months that the contract was originally scheduled to be open, we will only be entitled to those 24 periods of interest as determined by the amortization schedule. Such was the case regarding Ms. [redacted]'s account.

Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager

March 3, 2017   Re:       [redacted] M. [redacted]             ID #:  [redacted]             Our account # [redacted]   Dear Mr. [redacted]:   Thank you for...

your letter of February 27, 2017 regarding Mrs. [redacted]’s concerns.  I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record.   Preferred Credit, Inc. is a regulated sales finance company.  As such, our financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirements.   Despite these programs, Mrs. [redacted] has raised concerns about PCI’s phone contact practices. This issue appears to arise from Mrs. [redacted]’s attempts at payment in October and November of 2016 that were returned due to non-sufficient funds. Once Mrs. [redacted]’s October 2016 payment was returned, PCI began attempting to contact Mrs. [redacted] at the numbers she consented to be contacted at in her credit application.   On November 16, 2016 at 10:50 am (CST) PCI Senior Account Representative, Marneshia [redacted], placed a call to Mrs. [redacted]’s provided work phone number in an attempt to resolve Mrs. [redacted]’s past due account. During this call Mrs. [redacted] declined to set up a payment arrangement and requested that we remove her work phone number from the account. Our records indicate that, per her request, Mrs. [redacted]’s work phone number was removed from her account following this phone call. A further investigation of our records supports the fact that Mrs. [redacted]’s work phone number was removed from her account as no calls since November 16, 2016 have been placed to Mrs. [redacted] at any number other than her provided home and cell phone numbers.   Nevertheless, Mrs. [redacted], through this dispute, has requested that PCI stop calling her and only communicate with her via mail in the future. This has been done. Therefore, as our records indicate that we have complied with Mrs. [redacted]’s request regarding phone contact, PCI considers the matter closed.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager

April 25, 2016Re:       [redacted]            Case No.: [redacted]            Our Account No.: [redacted]Dear Mr. [redacted]: Thank you for your correspondence of...

April 22, 2016, regarding Ms. [redacted]’s concerns. I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record. Please note that PCI is a regulated sales finance company located in St. Cloud, Minnesota.  As such, our business is limited to the purchase of retail installment contracts and other forms of indebtedness from independent sellers of various goods. As a regulated sales finance company, our financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirements. However, we have not developed these programs to merely meet applicable state and federal regulations.  Rather, we have in addition tailored our programs in light our experiences as an indirect lender to better serve the individuals and markets we serve.  This means we make special effort to manage our relationship with our customers as it is in the interests of both Preferred Credit, Inc. and the customer that payment is made on a timely basis as non-timely payments result in late fees and adverse credit reporting. A review of Ms. [redacted]’s account file reveals that her November 2015 installment was not honored by her bank for non-sufficient funds though upon a second presentation, the installment was honored. However, as a result Ms. [redacted] incurred a redeposit fee, late fee and NSF fee totaling $63.86. Additionally, Ms. [redacted]’s December 2015 and January 2016 installments were late thereby incurring late fees of $7.72 and she withdrew from automatic monthly payments in January 2016 resulting in a premium service fee of $10.00 being accessed to her account for monthly statements she would begin receiving. Nevertheless, in the spirit of compromise, while PCI is entitled to all amounts due under her contract, we will agree to waive the $71.58 in fees Ms. [redacted] as incurred. PCI believes this to be a fair resolution.  Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.Sincerely, John [redacted]Compliance Manager [redacted]