Preferred Credit, Inc.

March 20, 2017   Re:       [redacted] K [redacted]             ID #:  [redacted]             Our account # [redacted]   Dear Mr. [redacted]:   Thank...

you for your letter of March 15, 2017 regarding Mr. [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.   Our records indicate that PCI financed the purchase of a Kirby home cleaning system from DT and Factory Promotions, Inc. of Eagan, Minnesota for [redacted] and [redacted]. Opting to not purchase the merchandise outright, the [redacted]s sought financing by completing a retail installment contract and credit application. The retail installment contract that the [redacted]s signed on January 18, 2017, and we approved, indicates the [redacted]s agreed to make eighteen (18) monthly payments in the amount of $84.74 with the first being due on March 1, 2017.   Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with their request for financing 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 presentation. This verification procedure was conducted by our Senior Account Representative, Audrey [redacted], by phone, with [redacted], January 18, 2017 at 7:41 pm (CST).  At no time did Mr. [redacted] express concern, dissatisfaction or doubt about his purchase.   The current issue appears to arise out of a misunderstanding of payment and interest application. On March 1, 2017 the [redacted]s made two payments. One payment was for $84.74 that was automatically drafted from their checking account based on their original payment authorization and the other was a lump sum payment of $1280.00 which was equal to the amount financed. Thus, the automatic draft caused the [redacted] to overpay and on March 2, 2017 at 11:09 am (CST) [redacted] called PCI and spoke with our agent Al [redacted] to confirm that his account was paid in full and closed. Mr. [redacted] indicated this was the case, that a refund was being processed, and that the refund would be sent to Mr. [redacted]. At this point, Mr. [redacted] also advised Mr. [redacted] that the refund would be in the amount of $60.23 and not $84.74 due to the fact that interest had been accruing since the date the contract was signed.   On March 15, 2017 at 10:57 am (CST) PCI supervisor Casey [redacted] reached out to Mr. [redacted] to advise him that his refund would be sent on April 7, 2017. Upon learning the expected date of the refund, Mr. [redacted] requested that he receive the full $84.74 because PCI was “holding his money.” Mr. [redacted] advised Mr. [redacted] that he would speak with our accounting department to try and expedite the process but that the check would be in the amount of $60.23 because interest had been accruing since the date the contract was signed.   On March 16, 2017 at 12:20 pm (CST) PCI assistant manager Megan [redacted] contacted Mr. [redacted], went over his contract with him, and explained that interest began accruing the date that the contract was signed and not the first payment date. Ms. [redacted] then informed Mr. [redacted] that PCI had expedited his refund and that he could expect to receive it sometime around March 22, 2017 or March 23, 2017. This conversation ended with Mr. [redacted] indicating that he understood and thanking Ms. [redacted].   Based upon the March 16, 2017 phone conversation between Ms. [redacted] and Mr. [redacted], PCI feels this issue has been resolved, and considers the matter closed.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager

July 5, 2016   Re:       [redacted]             Case No.: [redacted]             Our Account No.: [redacted]   Dear Mr. [redacted]:   Thank you for...

your correspondence of July 1, 2016, regarding Mr. [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.   Our records indicate that Preferred Credit, Inc. (PCI) financed Mr. [redacted]’s purchase of certain SaladMaster cookware from Lonestar Health Systems, Inc. This is evidenced by the retail charge agreement and associated purchase order he completed and executed on March 8, 2015 to which he agreed to make minimum monthly payments of $154.00 by the 23rd of each month.   A review of Mr. [redacted]’s account file indicates that Mr. [redacted]’s account had initially gone past due in November of 2015. In November, Mr. [redacted]’s regularly scheduled payment was not honored by his bank for non-sufficient funds upon its initial presentation to Mr. [redacted]’s bank. Mr. [redacted]’s account, as a result, incurred an NSF fee totaling $25.00 which had not ultimately been paid when his payment later cleared nor when Mr. [redacted] made his regular monthly payment amount of $154.00 the following month despite being alerted to this fact on his monthly statement.   Our account file also indicates that Mr. [redacted]’s account remained past due, as he failed to bring his account current in a timely manner. This was explained to Mr. [redacted] during the call that took place between Mr. [redacted] and a PCI representative on December 27, 2016 when he called inquiring as to the reason for his past due status.  At that time, there was no dispute as to the reason for being past due (i.e. the NSF fee) and Mr. [redacted] agreed to add the fee onto his following January 2016 payment bringing that monthly payment to a total of $179.00. Unfortunately, this neither brought his account current nor addressed the late fee that he would incur as a result of making payment in this fashion.   The issue of past due account status was again addressed with Mr. [redacted] when he placed a call to PCI and spoke with a Customer Service Representative on January 20, 2016. Mr. [redacted] had recently received a letter that he was past due and was inquiring as to why, when he thought the issue had been resolved during his December 27, 2015 call. Mr. [redacted] was again informed as to reason for his account being past due (i.e. outstanding fees). He was also informed that as of that date, the amount necessary to bring his account current would be $35.00 ($25 in NSF fees and $10 in late fees). Mr. [redacted] did agree that the $25.00 fee was scheduled to be applied to his January 2016 installment. However, the amount remained at $179.00 and did not account for the $10.00 late fee.   This issue, unfortunately, failed to be addressed when Mr. [redacted] ultimately attempted to make his January 2016 payment. Though Mr. [redacted] attempted to make payment in the amount of $179.00 as initially indicated, this payment was ultimately not honored by his bank for non-sufficient funds; thereby causing Mr. [redacted] to incur additional fees. Though Mr. [redacted] did make a payment of $225.00 on February 8, 2016 this failed to cover all payments and fees that had come due to date.   Mr. [redacted] again calls and speaks with a PCI Customer Service Representative on March 16, 2016. During this call Mr. [redacted] is informed that his January 2016 installment was not honored due to non-sufficient funds. He is also informed that his February 8, 2016 payment was received, but no mention of the amount received being enough to bring his account current is made. The PCI Customer Service Representative asked if Mr. [redacted] would like to speak with a supervisor and was placed on hold. When no supervisor could be reached, Mr. [redacted] was informed that an e-mail would be sent to a supervisor indicating that he would like a call back. At this time, it appears that no supervisor has since reached out to Mr. [redacted] and we sincerely apologize for this oversight.   Despite Mr. [redacted]’s claims of never paying late, he has in fact paid late both and as recently as January 2016. However, as of February 2016, Mr. [redacted]’s account has brought his account current and he has been able to make timely monthly installments for the agreed upon amount of $154.00 ever since.   Nevertheless, in the spirit of customer services, while PCI is entitled to all amounts due under his contract, we will agree to waive all late fees Mr. [redacted] has 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

April 3, 2017   Re:       [redacted]             Case No.: [redacted]             Our Account No.: [redacted]   Dear Mr. [redacted]:   Thank you for...

your correspondence of March 29, 2017, 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. The programs extend to our account servicing operations.   A review of Ms. [redacted]’s account file reveals that she was set up to make automatic monthly payments of $71.04 on the first of each month. These payments began on June 1, 2014 and were scheduled to run until her balance was paid in full. It appears that Ms. [redacted]’s concerns arise from a lump sum payment of $234.16 that she made on February 21, 2017 to pay off her account in full.   On February 21, 2017 Ms. [redacted] chose to make a lump sum of payment of $234.16 to fulfill her contractual obligation. Due to the fact that an automatic draft of $71.04 was scheduled for March 1, 2017, Ms. [redacted] called into PCI on March 1, 2017 at 9:23 am (CST) and spoke with PCI Senior Account Representative Josie [redacted] to confirm that her account was paid in full, and that an additional draft would not be taken from her account. Ms. [redacted] informed Ms. [redacted] that she would stop the automatic drafts, however, it was too late to stop the draft that took place on March 1, 2017. Ms. [redacted] informed Ms. [redacted] that she would be issued a refund in the amount of $71.04, and that she would receive it in three to six weeks.   On April 3, 2017 at 10:56 am (CST) Ms. [redacted] called PCI to inquire about her refund and spoke with Senior Account Representative Karen [redacted]. Ms. [redacted] advised Ms. [redacted] that a refund in the amount of $71.04 had been issued and mailed out on March 30, 2017, and that she should be receiving it soon.     Based upon this April 3, 2017 phone call between Ms. [redacted] and Ms. [redacted], PCI feels that this issue has been resolved, and considers the matter closed.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager

May 9, 2015 Re:       [redacted]             ID #: [redacted]             PCI Account #: [redacted] Dear Mr. [redacted]: Thank you for your letter of May 2, 2016...

regarding Mr. [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. It appears that an unfortunate set of circumstances have given rise to Mr. [redacted]’s concerns regarding his account at Preferred Credit, Inc. (PCI). We regret these circumstances and apologize for any inconvenience this may have caused Mr. [redacted]. Our records indicate that PCI financed Mr. [redacted]’s purchase of certain Filter Queen merchandise from Minnesota Health Systems, LLC of Cloquet, Minnesota. This is evidenced by the retail charge agreement and associated purchase order he completed and executed on October 16, 2015 to which he agreed to make minimum monthly payments of $64.00 by the 16th of each month. Mr. [redacted]’s agreement also provided for a six month same-as-cash option which expired on April 16, 2016. PCI first became aware of Mr. [redacted]’s concerns on Friday, April 22, 2016 at 4:18 p.m. (CST) when Mr. [redacted] contacted our offices and advised that though he issued a check to PCI in the amount of $2,110.00, the check was actually cashed for $3,110.00. Our agent advised Mr. [redacted] that our Accounting Department had left for the weekend and would return on Monday, April 25th, and that she would need to speak to them regarding issuing a refund to Mr. [redacted]. Mr. [redacted] contacted our offices again on Sunday, April 24th, again to discuss the matter. Our agent advised Mr. [redacted] again that our Accounting Department was gone for the weekend and that we would have a supervisor contact him first thing on Monday morning. Our offices called Mr. [redacted] on Monday, April 25th at 8:15 a.m. (CST), apologizing for the error and advised Mr. [redacted] that we would overnight a check for $1,000.00 to him that same day. This check was placed in the mail for overnight delivery on Monday, April 25th as promised to Mr. [redacted].  However, unfortunately, in the interim, a monthly statement was generated on Monday, April 25th at 7:57 a.m. invoicing Mr. [redacted] for the interest that had accrued on his account since its inception. We regret that Mr. [redacted]’s check in the amount of $2,110.00 was incorrectly read by our check scanner and cashed for $3,110.00.  We further regret that while our office was in the process of issuing a refund check to Mr. [redacted] a computer generated invoice was created for [redacted] invoicing him for interest that had accumulated on his account. We sincerely apologize to Mr. [redacted] for this error and for any inconvenience it may have caused him.  In fact, we have taken steps to work with Mr. [redacted]’s dealer to provide him the replacement wraps for his air purifiers that are scheduled to be replaced at six months. Should there be any other questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager [redacted]Final Response:It is unfortunate to hear that Mr. [redacted] has found our
response unacceptable. This is unfortunate as we feel we have made every effort
to be responsive to Mr. [redacted] concerns and to bring clarity to the matter.   However, we would like to take this opportunity to once
again share our regrets over the series of unfortunate events that have taken
place on Mr. [redacted] account.  We have, in turn, to do right by Mr.
[redacted], ensured that all necessary steps to correct Mr. [redacted] account has in
fact been undertaken; this includes the prompt refunding of all moneys owed.
Moreover, we wish to clarify for Mr. [redacted] that he has paid his account in
full.

February 15, 2017   Re:       [redacted]             ID #:  [redacted]             Our account # [redacted]   Dear Mr. [redacted]:   Thank you for...

your letter of February 14, 2017 regarding Mr. [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.   Our records indicate that Preferred Credit, Inc. (PCI) is financing [redacted] and [redacted]’s purchase of a Filter Queen home cleaning system from Minnesota Health Systems LLC dba Northland Health Filtration of Cloquet, Minnesota. On April 25, 2015, the [redacted]s completed a retail charge agreement and associated purchase order.  According to their agreement, the [redacted]s agreed to make equal monthly installments of $92.16 due on the 15th of each month, beginning on June 15, 2015.   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 credit 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 presentation. This verification procedure was conducted by Senior Account Representative, Francisco [redacted], by phone, with Mr. [redacted], on April 25, 2015 at 1:40 pm (CST).  At no time did Mr. [redacted] express concern, dissatisfaction or doubt about her purchase.   A review of the [redacted]s’ account shows that four separate payment attempts were returned due to non-sufficient funds, and five separate payments were made for less than the agreed upon amount of $92.16. This caused the [redacted]s’ account to go past due and PCI reported accordingly to the credit bureaus. As of the date of this letter, the [redacted]s are currently $866.60 and 214 days past due.   However, we are not without sympathy for the [redacted]’s. In fact, PCI has already agreed to restructure the [redacted]s’ contract. While this restructure will both lower their minimum monthly payment amount and will allow the [redacted]s’ to become current, we will be unable to change what was has already happened including what has been reported to the credit reporting agencies as doing so would be a violation of law. Mr. [redacted] has been made aware of these facts and agreed to the restructure. As an agreement is in place, we consider this matter closed.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager

Initial Business Response /* (1000, 6, 2015/11/27) */
November 27, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-5-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of November 18, 2015, 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 sales finance company whose business is limited to the purchase of sales finance contracts from various third-party, independent sellers of household goods. Moreover, it is PCI's credit policy to grant credit to all buyers who are qualified by virtue of creditworthiness. Creditworthiness is determined by income, credit history, stability of employment, assets, and liabilities. Factors such as age, gender, marital status, national origin, etc. are not taken into consideration by PCI.
Our records indicate that PCI financed Ms. [redacted]'s purchase of a Kirby home cleaning system on June 8, 2013 from GPD Promotions Systems, Inc. of Topeka, Kansas. Opting to not purchase the item by cash, check, or credit card, Ms. [redacted] sought financing by signing both a credit application and a retail installment contract that same day. According to the contract she executed, Ms. [redacted] agreed to finance $2,897.00 over equal monthly installments of $92.82 utilizing ACH payments.
As an assignee lender, our business practices have been structured to ensure that any consumer for whom PCI provides financing understands the original sale, their underlying debt obligation, and the financing relationship. To that end, a PCI Senior Account Representative spoke with Ms. [redacted] over the phone on June 8, 2013 at 9:20 p.m. (CST), to verify, among other things, that the information Ms. [redacted] provided on her credit application was accurate, that Ms. [redacted] understood the terms of the contract, that the payments required under the contract fit into her monthly budget, that Ms. [redacted] was not a victim of identity theft, that Ms. [redacted] was happy with the purchase, that Ms. [redacted] retained a copy of her contract, and that the original seller fulfilled all of the promises made during the presentation. At no time during this call did Ms. [redacted] express concern, dissatisfaction, or doubt about the purchase or her financing. We subsequently informed Ms. [redacted] that she had been approved for financing and sent the proceeds of her contract to GPD Promotions Systems, Inc., the original seller.
Our offices were first made aware that Ms. [redacted] had concerns regarding the method of interest calculation on her account when she contacted our offices on October 27, 2015. It seems Ms. [redacted] believed her interest was being calculated based on a simple interest basis where interest is accrued on a daily basis based on the outstanding principal balance and thus requested clarification regarding the method by which the interest was in fact accruing. Our customer service representative advised Ms. [redacted] on that day that the interest on her account was being calculated utilizing the Rule of 78's method. Unfortunately, this information was incorrect and for this we sincerely apologize to Ms. [redacted].
Rather, according to the contract Ms. [redacted] signed, interest is figured in accordance with the "actuarial method" of interest accrual. To determine the interest charged under the actuarial method we apply the interest rate, on a monthly basis, to the scheduled outstanding balance each month. The resulting amortization schedule then becomes the basis from which actual payments are allocated to both principal and interest.
This amortization schedule dictates when prepayment occurs. Once we have received payments sufficient enough to cover the original principal amount we then only earn such interest in such amounts for the term the contract is actually open according to this schedule. In general, then, if a contract is open for only 24 of the 36 months it was scheduled to be open, then we only earn interest on those 24 months according to the previously described amortization schedule.
We thank Ms. [redacted] for her business and we hope we were able to bring clarity to this matter. However, should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Consumer Rebuttal /* (3000, 8, 2015/12/10) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I want to note that I STILL have not received the entire contract. The supposed information regarding the finance charge "located on page 6", they sent me the same page that they sent prior but this time included a copy of the payments that I have made up to the time of mailing.
"Moreover, it is PCI's credit policy to grant credit to all buyers who are qualified by virtue of creditworthiness. Creditworthiness is determined by income, credit history, stability of employment, assets, and liabilities. Factors such as age, gender, marital status, national origin, etc. are not taken into consideration by PCI. " Not sure why this would matter, only to point out why they charged me the highest possible interest. The Facebook page they have claims they are associated with Kirby vacuums.
" Ms.[redacted] agreed to finance $2,897.00 over equal monthly installments of $92.82 utilizing ACH payments." I was mislead into thinking that 2 years at 92.82 was the agreement. I am interested to know if there is a recording of this phone conversation?
I also want to know why when I took the paper work into my bank, the pages that were sent to me, the loan officer at the bank is concerned to why she has not heard of the "actuarial method".
Final Business Response /* (4000, 10, 2015/12/17) */
December 17, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-5-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of December 11, 2015. We are sorry to hear that Ms. [redacted] did not accept our initial response. We hope in providing this response that we can allay any residual concerns Ms. [redacted] might have.
First, 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 standards. Moreover, our account servicing is routinely reviewed through regularly scheduled examinations by the regulatory authorities under which we operate. We therefore believe our interest accrual methods are both legal and accurate.
Second, please recall that Preferred Credit, Inc. is a sales finance company whose business is limited to the purchase of sales finance contracts from independent sellers of various household products from across the nation. As such, we do not originate any of the financing that is arranged by the dealers we serve. Rather, we receive credit applications and retail installment contracts executed by consumers and dealers and review them for purchase. This process often involves these dealers initially sending potential deals en masse to our offices electronically which transmissions get stamped with the date, time and number of pages be sent to us for our review. That notation has no bearing on the actual pages the consumer should have received. In fact, Ms. [redacted]'s contract consists of only two pages, front and back. We wholeheartedly apologize for any confusion that may have come in fulfilling Ms. [redacted]'s request to receive a complete copy of her contract. We will therefore be sending out a complete copy of Ms. [redacted]'s contract immediately.
Please also note that as a sales finance company our knowledge of the events and circumstances surrounding the original sale is necessarily limited. We can therefore only comment on our actions as it relates to the financing of Ms. [redacted]'s purchase. We therefore apologize if in our attempt to describe our business and our actions relating to the financing of Ms. [redacted]'s purchase that this came off as insincere. That was not our intent.
Third, please recall that as an assignee lender, we have taken actions to ensure that any consumer for whom PCI provides financing understands the original sale, their underlying debt obligation, and the financing relationship. We therefore took the opportunity to review the original terms of Ms. [redacted]'s contract with her on June 8, 2013. We can provide that recording to Revdex.com should the Revdex.com request it.
Finally, we wish to take this opportunity to inform Ms. [redacted] that we have agreed to accept her suggested resolution. She will therefore be receiving a credit to her account in the amount of $864.75. However, should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Final Consumer Response /* (2000, 12, 2015/12/18) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I will accept the response from Preferred Credit, Inc. I personally feel that a company that does:
1. "the bare minimum" to comply with the law
2. Preferred Credit, Inc. are the individuals whom told me the 'explanation of the financing were on page 6 of the contract' also note during this process of complaint, the previous statement was that they were sending it to me'
3. I wonder if ALL the conversations with ALL of the false and misdirecting information has been recorded and available for review.

I will wait for a final bill to arrive in the mail so that I can pay the remaining $640. I do appreciate that this was taken care of, I just question to why it couldn't have been done during the beginning conversation.

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

of April 18, 2016, regarding Mr. [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. Our records indicate that Preferred Credit, Inc. (“PCI”) financed Mr. [redacted]’s purchase of a Hydro-Quad system from United Distributors, Inc. of Jacksonville, Florida. According to the retail installment contract he executed on June 13, 2011, he agreed to finance $5,673.00 and repay his obligation by making seventy-two equal monthly installments of $129.34 commencing August 15, 2011. Mr. [redacted]’s interest accrual concerns appear to stem from a misunderstanding regarding the nature of his retail installment contract. It seems Mr. [redacted] believes his finance charges (interest) were being calculated based on a simple interest basis where interest is accrued on a daily basis based on the outstanding principal balance. This is incorrect. Instead, Mr. [redacted] entered into a precomputed retail installment contract where the finance company is only entitled to those finance charges that we have actually earned under the contract according to that contract’s amortization schedule.  Using Mr. [redacted]’s contract amortization schedule as guide, Mr. [redacted]’s current payoff amount can be itemized as follows (assuming payoff by next installment date of May 15): Amount Financed:                                          $          5673.00 Earned Finance Charge:                                  $          3452.90 (August, 2011 – May, 2016) Fees Earned:                                    �...⇄ $          20.00 Charges Earned:                                    �...⇄ $          15.00   Principal, Interest, Fees & Charges Earned = $          9160.90 Less Payments                                              - $          7392.38 Payoff Amount                                               $          1768.52 Finally, please note that Preferred Credit is a regulated sales finance company and licensed to conduct business in the states in which conduct business. As such, we are examined on a regular basis regarding our financing operations. We thank Mr. [redacted] for his business and we regret any confusion there may have been regarding the financing of his purchase. We hope we were able to bring clarity to this matter. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager [redacted]

July 20, 2016   Re:       [redacted]             Case ID: [redacted]             Our account #: [redacted]   Dear Mr. [redacted]:   Thank you for...

your letter of July 12, 2016 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.   Our records indicate that Preferred Credit, Inc. (PCI) is financing the purchase of a $7980 Rainsoft water system from Atlantic Water & Air of New Castle, Delaware for [redacted] L. [redacted] and [redacted]. This is evidenced by the retail charge agreement and associated purchase order they completed and executed on September 27, 2011 to which they agreed to make minimum monthly payments of $159.60 by the 28th of each month commencing December 28, 2011.   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 Mrs. [redacted] on September 27, 2011 and at no time did Mrs. [redacted] express concern, dissatisfaction or doubt about the terms of her agreement.  Had there been any issue with the nature of the financing she was requesting (e.g. the way interest accrues), we would have clarified that matter with Mrs. [redacted] at that time. Our records indicate this to not be the case.   Our account verification program helps ensure, in part, that Mrs. [redacted] understood the terms of her financing as well as the fact that she received a copy of those terms. Mrs. [redacted]’s contract is similarly constructed to help ensure she understands the financing she is requesting in accordance with applicable state and federal law.  Beginning on page one, under the heading “Additional Terms and Disclosures,” Mrs. [redacted] was provided with the basic terms of the agreement she executed including the applicable interest rate, how to avoid paying interest, the applicable fees and how interest accrues. All these terms, are further explained elsewhere in the agreement.   A review of the [redacted]’s payment history reveals that the Mr. and Mrs. [redacted] fell well behind in the repayment of their debt. The [redacted]'s failed to have made payment in any of the first six months of their agreement, three of which were initially deferred, thereby accruing substantial interest and fees. Further, Mr. and Mrs. [redacted] were unable to bring their account current under the original terms of their agreement, and, as a courtesy to Mr. and Mrs. [redacted], PCI agreed to restructure their account in August of 2013 in exchange for a recurring monthly payment of $200.  In doing so, PCI waived $500 in fees and brought forward the unpaid balance.  This provided the [redacted]’s the opportunity to start over with a clean slate (i.e. brought them current and removed all negative reporting).   Additionally, our records indicate that the balance has been correctly shown on the [redacted]’s monthly statements. The [redacted]’s have been making their monthly $200.00 payments as stated and their balance has dropped accordingly. For example, as of the date of this letter, their balance is $5,964.84. Whereas, six months ago it was $6,603.09 and one year ago it was $7075.36   Lastly, please be aware that PCI is a regulated lender and is therefore audited on a regular basis by numerous state agencies. These examinations verify PCI’s compliance with state and federal regulations regarding our financing operations. Please rest assured that all interest accruals, application of payments and fees are applied in accordance with these laws.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager

March 25, 2016 Re:       [redacted]             Case No.: [redacted] (Ref#19-18348-[redacted]-5-302)             Our Account No.: [redacted] Dear Mr. [redacted]: Thank you for your correspondence of March 15, 2016. We are sorry to hear that Mr. [redacted] did not accept out initial response. Please include this statement in your department’s permanent record. As stated in our initial response, Preferred Credit is a secured lender and therefore maintains a purchase money security interest in the item Mr. and Mrs. [redacted] purchased: namely their water system. To perfect that security interest we file a fixture filing.  This fact was disclosed pursuant to applicable law in the agreement Mr. and Mrs. [redacted] executed and will be removed either upon satisfaction of Mr. [redacted] debt.  Moreover, that on November 19, 2015, our offices received a fax from a Curative Specialist with Boston National Title requesting that we subordinate our UCC-1 fixture filing. Our 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 lien. We did not receive any response from Boston National Title on that matter. Also, as indicated in our initial response, no fees have been charged that have not otherwise been disclosed in the agreement.  All fees applied were the result of the activities on the account and include late fees, in the amount of $10 and phone pay fees in the amount of $11.75.  No other fees have been applied. Nevertheless, we consider ourselves to be a relationship-driven company.  Therefore, in line with Mr. [redacted]’s request, we would be willing to waive all interest and fees on Mr. [redacted]’s account provided that he pay us $1,908.05 which constitutes the unpaid principal balance after accounting for all payments made.  Mr. [redacted] would then be able to keep the merchandise, realize the capital investment he has made and ultimately save money on his purchase.  We believe this to be more than fair under the circumstances. Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted]. Sincerely, John [redacted] Compliance Manager

March 17, 2016
Re: [redacted]
Case #: [redacted] (Ref#19-18348-[redacted]-4-302)
Our account #: [redacted]
Dear Mr. [redacted]:
Thank you for your letter of March 14, 2016 regarding Ms. [redacted] 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 is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household products. Preferred Credit's credit policy is to grant credit to all buyers who are qualified by virtue of credit worthiness. Credit worthiness is determined by income, credit history, stability of employment, assets, and liabilities. Factors such as gender, age, marital status, national origin, etc. are not taken into consideration by Preferred Credit.
Preferred Credit financed the purchase of a Kirby home cleaning system from E.G. Marketing of Fairfield, California for Ms. [redacted]. Ms. [redacted] completed an application for credit and entered into a retail installment contract on September 16, 2010. According to the contract Ms. [redacted] executed, she financed $2,000.00 to be paid by 36 equal monthly installments of $76.36 to commence on October 31, 2010.
Great care is taken in the proper servicing, management and collection of all Preferred Credit accounts. Prior to the extension of credit, on September 17, 2010, our senior account representative, Cheryl [redacted], spoke with Ms. [redacted] at 11:05 p.m. (CST) to verify the information that Ms. [redacted] provided on her credit application was accurate that Ms. [redacted] was not a victim of identity theft, that the terms of the contract were understood, that she was happy with the purchase and that the dealer fulfilled all of the promises made during the presentation. At no time did Ms. [redacted] express concern, dissatisfaction or doubt about any of the aforementioned.
A review of Ms. [redacted]'s payment history reveals that Ms. [redacted]'s first installment was not honored by her bank due to non-sufficient funds and no further payment was received until March 2011 wherein Ms. [redacted] began making monthly payments of $30.00. Ms. [redacted]'s account was charged off in June 2012 due to late payments and payment received at less than the contractually agreed upon installment amount. As a result, Ms. [redacted]'s account was turned over to a collection agency. Subsequently, Ms. [redacted] entered into a payment plan with the agency making monthly payment of $30.00 through present with a current outstanding balance of $1,158.96.
Additionally, we are sorry to hear that Ms. [redacted]'s Kirby is not functioning properly. PCI has reached out to the original seller, E.G. Marketing now doing business as 3TAC Distributions, Inc., and requested that they contact Ms. [redacted] regarding the matter.
If Ms. [redacted] would like a copy of her payment history or the contact information for 3TAC Distributions, Inc., we would ask that she contact our customer service department at 1 (800) [redacted] where any of our agents would be happy to assist her.
Lastly, please be aware that PCI is a regulated lender and is therefore audited on a regular basis by numerous state agencies. These examinations verify PCI's compliance with state and federal regulations regarding our financing operations. Please rest assured that all interest accruals, application of payments and fees are applied in accordance with these laws.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager

October 26, 2016   Re:       [redacted]             Case No.: [redacted]             Our Account No.: [redacted]   Dear Mr. [redacted]:   Thank...

you for your correspondence of October 26, 2016, regarding Ms. [redacted]’ 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]’ account file reveals that her October 2016 installment was not honored by her bank for non-sufficient funds. Ms. [redacted] therefore incurred NSF fees totaling $20.00. Moreover, Ms. [redacted] made a separate payment of $87.44 that was applied on October 12, 2016, outside of her ten day grace period. Thus, this payment was past due and incurred a late fee.   On October 10, 2016 Ms. [redacted] was contacted by PCI Senior Account Representative Isis Molina [redacted] in an attempt to alert Ms. [redacted] to the fact that her previous attempt at payment had been returned due to non-sufficient funds and to attempt to secure her October installment. At this point, Ms. [redacted] indicated that her credit card had been stolen which caused the installment to be returned. She also indicated that she was now willing to make a payment to satisfy her October installment. Ms. [redacted] was then advised that any payment she attempted to make on October 10th would not be processed until October 12th due to the Columbus Day holiday. Ms. [redacted] was advised that once this payment was posted, it would fall outside of her 10 day grace period and she would incur a late fee in addition to her NSF fee. Ms. [redacted] became unhappy and asked if PCI could waive the fees due to the hardship of her card being stolen. After speaking with a supervisor, Ms. Molina [redacted] informed Ms. [redacted] that PCI would be willing to waive the late fee but the NSF fee would still need to be paid. Ms. [redacted] then attempted to make a payment over the phone via a credit card but was unwilling to pay the service fee and chose to pay online via her checking account. At no point during this call did Ms. Molina [redacted] indicate that the NSF fee would be waived. In fact, she made it quite clear to Ms. [redacted] that only the late fee would be waived.   On October 26, 2016 Ms. [redacted] placed a call to PCI and spoke initially with Senior Account Representative Jackie [redacted] regarding payment of the previously applied NSF fee. During this October 26, 2016 phone call Ms. [redacted] was transferred to PCI Senior Account Supervisor Cassie [redacted]. Speaking with Ms. [redacted], Ms. [redacted] claimed that she was previously told that all fees would be waived and she never paid late, as she was within the 10 day grace period. Ms. [redacted] reviewed what happened with Ms. [redacted]’ account and why she was being charged the $20.00 NSF fee. Ms. [redacted] then requested to be taken off automatic payments and Ms. [redacted] offered to do so but advised Ms. [redacted] that there would be a onetime $10.00 fee to provide mailed statements. Ms. [redacted] declined to pay this fee and chose to remain on automatic payments.   Nevertheless, as a relationship-driven company, PCI reached out to Ms. [redacted] to discuss her concerns.  In speaking with Ms. [redacted], we have agreed to waive the $20.00 in NSF fees Ms. [redacted] has incurred. We therefore believe the matter to be closed.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely, John [redacted] Compliance Manager

Initial Business Response /* (1000, 8, 2015/05/27) */
May 15, 2015
Re: Ronald [redacted]
Case #: [redacted]
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your letter of May 13, 2015 regarding Mr. [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.
PCI is a licensed regulated lender and undergoes routine extensive examinations from various state agencies. These examinations verify PCI's compliance with state and federal regulations regarding our financing operations. Please rest assured that all interest accruals, application of payments and fees are applied in accordance with these laws. All accounting on Mr. [redacted]'s account was and remains accurate.
Preferred Credit, Inc. (PCI) is pleased to inform you that, while we stand by the accounting and actions taken on Mr. [redacted]'s account, a refund in the amount of $50.00 is forthcoming to Mr. [redacted] because of his efforts to make good on his obligation. Therefore, we have closed Mr. [redacted]'s account as paid in full with a zero balance.
Please note that our records indicate that Mr. [redacted] had enrolled in Preferred Credit's automatic draft program for his monthly payment of $145.24 to be withdrawn on the 20th of each month until such time the account had a zero balance or until he provided Preferred Credit with an advance notice to cease those payments.
Our records reflect that on March 26, 2015, Mr. [redacted] spoke with PCI representative [redacted] regarding his account. Mr. [redacted] was advised that a payoff amount of $1,891.69 would be honored through March 27, 2015. . Mr. [redacted]'s account continued to accrue additional interest charges until we received his payment of $1,891.69 on March 30, 2015 thereby leaving an outstanding balance of $3.16. This triggered Mr. [redacted]'s April 20, 2015 automatic draft. PCI received notice on April 22, 2015 from Mr. [redacted]'s bank that Mr. [redacted]'s April 20th payment was denied as his account had been closed. Correspondence was sent to Mr. [redacted] advising him of same.
Again, Mr. [redacted]'s account has been closed as "paid in full" and a refund is forthcoming. To that end, we believe this matter to be closed. Should there be any other questions or concerns, please do not hesitate to our office at (320)[redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 10, 2015/05/29) */
(The consumer indicated he/she ACCEPTED the response from the business.)

May 2, 2016 Re:       [redacted]             Case No.: [redacted]             Our Account No.: [redacted] Dear Mr. [redacted]: Thank you for your correspondence of April 26, 2016. Please include this statement in your department’s permanent record. Please note that Preferred Credit, Inc. takes all consumer concerns seriously. That is why with each consumer concern we receive we take the opportunity to review the consumer’s account file in its entirety, researching for the possible causes for the dispute, and then provide a thorough yet concise response. We therefore apologize that in doing so we have come across as condescending. That was not our intent. Our intent was to clarify for Mr. [redacted] the actual amount due while at the same time accounting for any potential confusion which may have led to his dispute. To that end, please rest assured that as a regulated sales finance company whose operations are routinely examined for compliance with applicable law that the accounting in our initial response to Mr. [redacted] is indeed accurate, that there is no prepayment penalty his account as this is not allowed under Florida law, and that our agent merely informed Mr. [redacted] that he would save less on finance charges the longer he had his account open.  Moreover, that contrary to Mr. [redacted]’s assertions, our accounting indicates that should Mr. [redacted] payoff before May 15, 2016 he will have saved nearly $200 in finance charges. Nevertheless, we consider ourselves to be a relationship-driven company. Therefore, in line with Mr. [redacted]’s resolution, we are willing to reduce Mr. [redacted]’s current payoff amount by $387.11. This reduction represents one-half the difference between Mr. [redacted]’s calculation ($1,064.31) and his actual account payoff ($1,768.52); including the waiver of $35.00 in fees and other charges. Therefore, we are willing to accept $1,381.41 (assuming payoff by next installment date of May 15, 2016) in satisfaction of Mr. [redacted]’s contract thereby saving Mr. [redacted] nearly $600 on his financing. We believe this to be more than fair under the circumstances. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager [redacted]

Initial Business Response /* (1000, 8, 2016/03/07) */
March 7, 2016
Re: [redacted]
Case # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account # [redacted]
Dear Mr. [redacted]:

Thank you for your correspondence of February 22, 2016 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 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 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.

Our records indicate that PCI is financing Mr. [redacted]'s purchase of a Rainbow home cleaning system from Premier Air, LLC of Acworth, Georgia. According to Mr. [redacted]'s contract, he agreed to finance $2,499.00 with monthly payments of $96.47 with the first payment due February 8, 2013.
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 presentation. This verification procedure was conducted with Mr. [redacted] on December 18, 2013 at 8:38 pm (CST) and at no time did Mr. [redacted] express concern, dissatisfaction or doubt about the terms of his account. With that, the proceeds of the contract were paid to the original seller.
Review of Mr. [redacted]'s account reveals that on February 13, 2014, our offices spoke with Mr. [redacted] regarding his account as his scheduled payment was not honored by his bank. Mr. [redacted] updated our offices with his current address located in Jackson, Mississippi and advised that his "account got caught up in some fraudulent activity" and would need to provide us with new account information.
During the next few months, Mr. [redacted] made payments towards his account with some periodic late installments. Also during this time, Mr. [redacted] called our offices and expressed concern regarding our credit bureau reporting regarding his account. On October 24, 2014. Mr. [redacted] filed a complaint with the Revdex.com regarding those same concerns and we responded to them. We can provide a copy of our previous reply to the Revdex.com should that be necessary.
Mr. [redacted] continued to make installment payments. On December 17, 2015, Mr. [redacted] called our offices requesting to make a payment towards his account. However, four days later, on December 21, 2015, Mr. [redacted] called our offices and claimed he was victim of identity left. During this telephone conversation, our office requested Mr. [redacted] send us a copy of police report regarding the same and upon receipt our fraud department would investigate the matter.
On January 27, 2016, our offices received faxed correspondence consisting of a front page of the City of Jackson's police investigative report, dated January 7, 2016, regarding False Pretense, as well as five pages of an Identify Theft Victim's Complaint and Affidavit. This affidavit is a standard affidavit available through credit bureau reporting agencies. Upon receipt of the information provided, our fraud department began investigating the matter.
PCI takes all assertions of fraud seriously. Given the results of this investigation PCI believes the contract to be valid. However, should Mr. [redacted] obtain additional documentation supporting his claim of identity theft, we ask he forward same to our office. Upon receipt, PCI will re-evaluate the matter.
Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager

Initial Business Response /* (1000, 5, 2015/09/28) */
September 28, 2015
Re: [redacted]
Case No.: Case# # [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No.:[redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of September 23, 2015, regarding Ms. [redacted]'s concerns. As we...

strive to provide the best possible customer service, 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 that we are financing the purchase of a Kirby home cleaning system for [redacted] and [redacted] from Metro Rhino Distributors, LLC of Alpharetta, Georgia. This is evidenced by the credit application and retail installment contract completed and executed by Mr. and Ms. [redacted] on June 15, 2013 and the account verification that was completed with Mr. [redacted] that same day by phone. According to the contract they signed, Mr. and Ms. [redacted] agreed to finance $2000 over thirty-six equal installments of $77.22 starting July 21, 2013.
PCI makes available to our customers the option of making payments online. For online payments, PCI employs a fully integrated and automated system serviced by US Bank. When a customer opts to pay online, PCI directs the customer through a link at our website to the processing center at US Bank. US Bank then takes all appropriate actions securing the transaction: i.e. verifying the customer with their account, ensuring that there are sufficient funds, etc. Upon completion of this process, US Bank then coordinates withdrawal of all associated payments authorized by the consumer. The fact that this payment system runs independently of all other payment systems appears to have contributed to the circumstances which led to the filing of this complaint.
On June 12, 2015, Ms. [redacted] contacted our offices to establish a new payment arrangement and proceeded to do so by providing the relevant banking information and authorization in order to draft the necessary payment on the 21st of each month commencing June 21, 2015. However, Ms. [redacted] already had an existing payment authorization which was previously established online on April 21, 2014 for the same amount and on the same date. Therefore, when Ms. [redacted] established the new payment arrangement on June 12, 2015, this had the practical consequence of having two concurrent automatic payments set up on her account - one payment through the online system Ms. [redacted] set up on April, 21, 2014 (through what we now know is her "old" bank account) and a second monthly payment that Ms. [redacted] set up directly with our offices on June 12, 2015 (through her current bank account). It now appears evident that this was not Ms. [redacted]'s intention as her intention had been to update the bank account from which the automatic payments would be withdrawn on her existing automatic payment arrangement.
This issue appears to have re-presented itself on June 19, 2015, when Ms. [redacted] logged onto the US Bank website and attempted to cancel her June 21st payment and reschedule it to be withdrawn on June 25, 2015. While the automated system does allow for our customer's to make changes to their payment dates, it does need to be done in a timely manner so as to afford US Bank a reasonable opportunity to act on it. Unfortunately, Ms. [redacted]'s request on June 19th to reschedule the payment did not allow a reasonable amount of time for the payment to be rescheduled and the payment was attempted on June 21st pursuant to the online recurring payment plan Ms. [redacted] set up in April 2014 which was not honored by Ms. [redacted]'s bank due to non-sufficient funds. As a result Ms. [redacted] incurred associated fees for the dishonored payment on their PCI account. The recurring payment set up with our offices on June 12, 2015, however, did successfully go through.

Nevertheless, PCI is pleased to inform Ms. [redacted] and the Revdex.com that PCI, as a relationship-driven company, we will be waiving the $30 fee Ms. [redacted] incurred for the dishonored payment. We wish to inform Ms. [redacted] and the Revdex.com that we will be reviewing our procedures internally and the automated system serviced by US Bank online to see where we may improve so as to avoid this issue in the future.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/09/29) */
(The consumer indicated he/she DID NOT accept the response from the business.)
Preferred Credit has not resolved the issue of my bank being overdrafted due to the second incident. All I am asking is them to credit my bank account the $35 that was charged to my account from being overdrawn due to their online payment system not honoring the change of draft date.
Final Business Response /* (4000, 9, 2015/09/30) */
September 30, 2015
Re: [redacted]
Case No.: Case# #[redacted] (Ref#19-18348-[redacted]-8-3100)
Our Account No.:[redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of September 29, 2015. We are sorry to hear that Ms. [redacted] did not accept our initial response. Please include this statement in your department's permanent record.
As you may recall, in our initial response Preferred Credit, Inc. had agreed to waive the $30.00 fee Ms. [redacted] incurred with our office for the dishonored payment. However, pursuant to Ms. [redacted]'s request, Preferred Credit, Inc. will instead make a one-time ACH deposit of $35.00 into Ms. [redacted]'s bank account on file with our office. With that, we believe the matter to be closed.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager

I am rejecting this response because: THAT IS A LIE. THE FIRST DOCUMENT I SENT IS FOR THE $118 THAT I DID AND AFTER A COUPLE OF MINUTES LATER. I RECEIVED AND EMAIL SAYING I DID A PAYMENT FOR $218. I CALL THE COMPANY AND TOLD THEM WHAT HAPPENED. ONE PERSON TOLD ME I WAS ABLE TO CANCEL IT BECAUSE IT WASNT POSTED DATE FOR THE 16TH IT HAD A POSTED DATE FOR THE 17TH. SO I WENT ONLINE.. IT HAD A OPTION TO CANCEL THE $118 AND NOT THE $216. SO I CALLED AGAIN THE COMPANY TOLD ME THEY CANT DO NOTHING ABOUT IT BECAUSE I CLICKED ON IT TO PAY THE WHOLE AMOUNT. SO IF I CLICKED ON TO PAY FOR THE $216.. HOW DID I GET TWO EMAILS FOR 2 DIFFERENT THINGS. SO I WAS ABLE TO CANCEL THE $118 SO IT WANT CHARGE MY CARD FOR BOTH PAYMENTS. THIS COMPANY IS A LIE!! DOCUMENT ARE ENCLOSED WITH THIS EMAIL

Initial Business Response /* (1000, 5, 2015/10/12) */
October 12, 2015
Re: [redacted]
Case # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account #[redacted]
Dear Mr. [redacted]:
Thank you for your letter of October 2, 2015 regarding Mr. [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 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 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 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 presentation. This verification procedure was conducted with Mr. [redacted] on February 6, 2015 at 11:52 am (CST) and at no time did Mr. [redacted] express concern, dissatisfaction or doubt about the terms of his account or the fact that an interest free promotional option may have been agreed to with the seller. Had there been any issue on either front, we would have clarified that matter with Mr. [redacted] and the original seller at that time. Our records indicate this to not be the case on either count.
Our account verification program helps ensure, in part, that Mr. [redacted] understood the terms of his financing as well as the fact that he received a copy of those terms. Mr. [redacted]'s agreement is similarly constructed to help ensure he understands the financing he is requesting. All relevant terms and conditions are provided with the agreement and separate actions were taken by Mr. [redacted] to attest to the fact that he not only received a copy of those terms and conditions but that he read and agreed to them as well. Noticeably absent from Mr. [redacted]'s attested to paperwork was any reference to interest free promotional option. Unfortunately, the same cannot be said regarding the fixture filing we filed to secure our interest in the goods.
Please recall that PCI is a third-party, regulated lender that finances the sale of various consumer goods by independent sellers. As a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mr. [redacted]'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. [redacted]'s retail charge agreement. This 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 $200 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..."
Generally, this filing will be removed upon the satisfaction of Mr. [redacted]'s account.
Our records indicate that on September 28, 2015, our offices received a telephone call from a representative of Wells Fargo requesting that we subordinate our UCC-1 fixture filing in this matter. We requested that the bank forward to us an authorization from Mr. [redacted] requesting the subordination and we advised that we would provide them our requirements.
Upon receipt of the requested authorization it was determined that Mr. [redacted]'s account did not meet the qualifications for PCI to remove or subordinate the UCC-1 fixture filing. One of those factors was that Mr. [redacted]'s account had a high balance and he was not set up on automatic monthly payments. However, because we are a relationship-driven company, our offices did advise Mr. [redacted] on October 5, 2015 that should payment of $500.00 be received and he agreed to automatic withdrawal for the remainder of his obligation, PCI would re-evaluate his account.
On October 8, 2015, Mr. [redacted] contacted our offices regarding our offer. He subsequently authorized a single payment in the amount of $500 as well as authorized recurring payments for his monthly installment therefore fulfilling our requirements. We now only need Wells Fargo to provide us with the appropriate paperwork to complete the subordination.

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

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.I appreciate your time and willingness to work with me on this issue.

March 22, 2016
Re: [redacted]
Case# # [redacted] (Ref#19-18348-[redacted]-5-302)
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of March 14, 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 be advised that Preferred Credit, Inc. has requested that the credit reporting agencies remove all of our reporting from Ms. [redacted]'s credit files. Please be advised that once this request is relayed to the credit reporting agencies, the time in which the information is actually removed from your client's report is out of Preferred Credit's hands as it will be up to the credit reporting agencies to complete the removal.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager

February 7, 2017   Re:       [redacted]             ID #:  [redacted]             Our account # [redacted]   Dear Mr. [redacted]:   Thank you for your...

letter of January 31, 2017 regarding Mr. [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.   Our records indicate that Preferred Credit, Inc. (PCI) is financing Mr. [redacted]’s purchase of a Kirby home cleaning system from McGall Equipment Company Inc. of Slidell, Louisiana. On January 19, 2017 Mr. [redacted] completed a retail installment contract and credit application.  According to his contract, Mr. [redacted] agreed to make thirty-six (36) monthly payments of $71.41 due on the 3rd of each month beginning on March 3, 2017.   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 on his/her credit 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 by Senior Account Representative, Eva [redacted], by phone, with Mr. [redacted], on January 19, 2017 at 1:00 pm (CST). At no time did Mr. [redacted] express concern, dissatisfaction or doubt about his purchase. Satisfied with his responses, we subsequently informed Mr. [redacted] he had been approved for financing.   In addition, please note that Mr. [redacted] had until midnight of January 23, 2017, to cancel his contract. The notice of cancellation provided that Mr. [redacted] could cancel his purchase by sending or delivering the cancellation notice provided with his paperwork or by sending any other written notice to the original seller, McGall Equipment Company, Inc. This does not appear to have been done as proof of such notice was never received by the original seller’s office or by our office. In fact, Mr. [redacted]’s own correspondence with PCI seems to indicate that he contacted the distributor via phone to convey his wish to cancel on January 20, 2017 but did not ever provide written notice. Because Mr. [redacted] failed to cancel the contract accordingly, the agreement remains in full force and effect, as intended, upon Mr. [redacted]’s signature on the contract and the passing of the appropriate rescission period.   Nevertheless, as a relationship driven company, PCI reached out to McGall Equipment Company, Inc. to determine an appropriate resolution, and is pleased to inform Mr. [redacted] and your office that McGall Equipment Company, Inc. made the decision to cancel Mr. [redacted]’s account on January 31, 2017.  Therefore, PCI will also be cancelling Mr. [redacted]’s account with us, will make no further demand for payment, will update our reporting with the credit reporting agencies accordingly, and consider the matter closed.    Additionally, through previous conversations with PCI, Mr. [redacted] has indicated that he is willing to send the merchandise back to McGall Equipment Company, Inc. The cancellation of Mr. [redacted]’s account is contingent on the merchandise being returned to the distributor. It is the responsibility of Mr. [redacted] to coordinate the return of the merchandise.   Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####.   Sincerely,   John [redacted] Compliance Manager