June 22, 2016 Re: [redacted] M. [redacted] Complaint ID #: [redacted] Our account #: [redacted] Dear Mr. [redacted]: Thank...
you for your e-mail of June 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing the purchase of a Rainbow Home Cleaning System from D & H Quality Air in Manassas, VA for Ms. [redacted]. Ms. [redacted] completed an application for credit and entered into a retail installment contract on June 9, 2015. According to the contract Ms. [redacted] executed, she financed $2,993.35 to be repaid over 36 equal monthly installments of $118.38 to commence on September 15, 2015. Great care is taken in the proper servicing, management and collection of all Preferred Credit accounts. Prior to the extension of credit, on June 9, 2015, a senior account representative, spoke with Ms. [redacted] at 7:43 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. Ms. [redacted]’s present concerns arises from a call made by Ms. [redacted] on May 9, 2016 at 10:46 a.m. (CST) requesting that her payments be lowered due to recent economic hardship. A PCI representative informed Ms. [redacted] that her payment could potentially be cut in half for a three-month period, pending the approval of a supervisor. During the same call, the supervisor approved this arrangement, resulting in Ms. [redacted]’s payment being lowered to $60.00 per month for the next three months. Ms. [redacted] was then asked if she would like to set up a method of payment and Ms. [redacted] indicated that she would be paying online. Unfortunately, at no point during this call was Ms. [redacted] made aware that her election to make payments online would not remove her from our regular recovery efforts as she had not made a secured arrangement. If Ms. [redacted] had been informed of this fact and opted to set up some form of automatic payment, she would have been relieved from normal recovery activities during the three-month span in question. Therefore, by electing to pay manually online each month, her $60.00 payments were viewed as being insufficient and prompted those activities. In light of the foregoing, it appears there was a miscommunication between the PCI representative and Ms. [redacted] as to how her reduced payments would be made and the potential results of that choice. We sincerely apologize for not clarifying this with Ms. [redacted]. Please note that we have taken the appropriate corrective actions on Ms. [redacted]’s account to ensure her account reflects the arrangement she secured with our agent on May 9, 2016 both internally and with the credit bureaus; this includes the rewriting of Ms. [redacted]’s account and waiver of all fees. We have taken similar corrective actions with the agent who worked with Ms. [redacted] and took the opportunity to review our protocols so as to prevent this issue in the future. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/09/01) */
September 1, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Client No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of August 24, 2015 letter, regarding Mr. [redacted]'s concerns. While sufficient...
information to identify the specific accounts Mr. [redacted] refers to in his correspondence was not provided, 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. ("PCI") is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household products. PCI's credit policy is 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 gender, age, marital status, national origin, etc. are not taken into consideration by PCI.
To ensure our customers understand the contract they signed, PCI employs an industry leading contract verification process. As part of this verification procedure, a PCI senior account representative speaks with the customer to verify, among other things, that all information contained in the application was accurate. PCI also verifies employment and income. Any false personal information or acknowledgment of improper sales techniques found during the verification process will result in the turndown of the contract and no credit will be extended. Fundamental changes, depending on the nature and extent of those changes, in the original application may also serve as a basis for the application to be turned down.
If the customer's income reported on his/her application cannot be verified we notify the Client. We also advise the Client that if proof of additional income can be provided we will review the application again to determine if we can honor the original approval.
PCI considers itself to be a relationship-driven company. We therefore appreciate any and all feedback in order to ensure we provide the best possible experience and level of customer service. We encourage Mr. [redacted] to contact us directly so that his concerns may be specifically addressed.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Business Response /* (1000, 5, 2015/06/04) */
June 4, 2015
Re: [redacted]
Case No. [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No. [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence regarding Mr. [redacted]'s concerns. We are pleased to inform the Better...
Business Bureau and Mr. [redacted] that we will be refunding Mr. [redacted]'s last payment of $47.45. Nevertheless, we ask that you include this statement of our position in your department's permanent record.
First and foremost, Preferred Credit, Inc. (PCI) believes Mr. [redacted] to be a wonderful customer and we thank him for his business. While we cannot support his claim that he was erroneously charged interest on his loan, we can provide information that we believe can bring some clarity to this situation.
Our records indicate that PCI financed Mr. [redacted]'s purchase of a Kirby home maintenance system from [redacted], LLC of San Diego, California. Mr. [redacted] financed $1,200.00 over 36 equal installments of $47.45 due on the 3rd of each month with the first payment due February 3, 2015 under the revised terms of the contract he originally signed in October of 2014. Nevertheless, in both cases, Mr. [redacted] was provided a three-month-same-as-cash option which his contract states the following regarding that promotional option:
"If you make all your payments on time and pay the entire balance within the promotional period from the date of the Contract, we will waive all finance charges. Otherwise, you will pay all amounts due on this Contract as stated above on the front side of this Contract."
A review of Mr. [redacted]'s account indicates that he had failed to meet the terms of his same-as-cash option. As indicated previously, Mr. [redacted] needed to satisfy the following conditions in order to take advantage of his three-month-same-as-cash promotion:
1. Make all payments on time (i.e. in the amount and by the due date indicated in the contract); and
2. Pay the entire amount financed within the promotional period (i.e. the amount financed needed to be paid by April 3, 2015).
We commend Mr. [redacted] for making his payments on time, however, Mr. [redacted] failed to meet the second requirement. Our records indicate that Mr. [redacted] only made payments totaling $847.45 by April 3, 2015 thereby negating his same-as-cash option.
Our records also indicate that Mr. [redacted] called our offices on April 21, 2015 inquiring about the status of his account and his belief that his obligation had been paid in full. Our representative explained to Mr. [redacted] that the same-as-cash promotion ended three months following the date of the contract and therefore there was a balance due on this account.
Nevertheless, PCI, as a relationship-driven company, reached out to [redacted], LLC, the original independent seller, regarding Mr. [redacted]'s concerns. [redacted], LLC graciously offered to pay the balance of Mr. [redacted]'s obligation. Mr. [redacted] was advised on April 26, 2015 that the matter had been resolved and his account would be closed.
Unfortunately, our system was not yet updated with the payment from [redacted], LLC by the time Mr. [redacted]'s next monthly payment of $47.45 was due and an automatic withdrawal of his payment was completed on May 4, 2015. We regret any inconvenience this has caused Mr. [redacted] and strive to provide great care in the proper servicing, management and collection of all PCI accounts. We regret if Mr. [redacted] felt PCI was not responsive to his situation leaving him no choice but to file a complaint with the Revdex.com, but PCI was diligently working on addressing his concerns and working through the process of updating and closing his account.
As referenced above the original seller has taken care of the balance of Mr. [redacted]'s obligation with PCI, a refund of $47.45 will be forwarded to Mr. [redacted] and his account with PCI will be closed. We assume Mr. [redacted] will find this to be a suitable resolution to the matter and PCI will close his file regarding this matter.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/06/08) */
(The consumer indicated he/she DID NOT accept the response from the business.)
While I appreciate the company refunding the money that they should not have taken from me (after 22 days, numerous phone calls and getting the Revdex.com involved) there is some incorrect information in Mr. [redacted]'s response.
Let's start from the beginning with the initial purchase: I entered into a contract agreement with Kirby on 30 SEPT 2014. This contract agreement was voided and subsequently rewritten on 03 OCT 2014. Kirby stated that the terms of the new contract were to be 6 months no interest and 3 months no payments due. The contract reflected these terms by stating that our first payment was due on 03 JAN 2015 and that we had 3 months "same as cash" starting from 03 JAN 2015 as well. I was sent a "Federal Truth in Lending Disclosure" form from PCI dated 07 OCT 2014 for the initial, voided contract. I never received an updated form for the new contract so on 15 DEC 2015 I called PCI and requested to know why I had not received an updated copy and how I should go about paying on 03 JAN 2015. At this time it was also discovered that both my name and social security number were incorrect which caused me not to be able to log in to my account. I was told explicitly not to make payments until I received a new copy of the "Federal Truth in Lending Disclosure" form. PCI contacted me on 13 JAN 2015 to ask whether I had received the form yet, which I had not. They said that it would be there soon and to hold off on making any payments until 03 FEB 2015, explicitly stating this would be the new first payment date. I was informed that my "same as cash" option would not take effect until 03 FEB 2015. Please see attached that this form was not even generated until 27 JAN 2015. At this point my "same as cash" 3 month policy would be from 03 FEB 2015 to 03 MAY 2015. I fulfilled all payments between 03 FEB 2015 and 08 APR 2015, well within my 3 month limit. However, PCI had not adjusted this in their system when they verbally confirmed it with me which caused interest to generate starting on 03 APR 2015 when it shouldn't have until 03 MAY 2015. Assuming I had fulfilled my portion of the contract I called PCI on 21 APR 2015 to inquire about my account. During this conversation I was told that I had not made all of my payments and that a balance still remained (this is how I know they did not shift the "same as cash" dates). The associate was rather rude to me during this call and absolutely refused to acknowledge my complaint or help me in any way. Later that day I went to the local Kirby/Paradigm office to discuss this with them directly. Having come to the conclusion that I had completely fulfilled my contract, they contacted PCI to close my account. On 26 APR 2015 PCI called me to ensure my account was closed and all matters resolved and was assured that everything was fine. Which leads us to 04 MAY 2015 when my account wasn't closed and subsequently charged.
I counter that I did not fail to meet the "same as cash" stipulation as explained to me. Had PCI sent out the FTiLD form sooner (sometime between 03 OCT 2014 and 03 JAN 2015) and had they not shifted my new payment start date to 03 FEB 2015, none of this would have been an issue, as I was fully prepared to complete my payments between 03 JAN 2015 and 03 APRIL 2015. After calling 4 times and told every time that the matter would be resolved by some future date only to have that date pass by left me with no choice but to contact the Revdex.com. I do not appreciate being told that I failed to follow guidelines when PCI:
a) Did not update the FTiLD form expeditiously
b) Set up my account incorrectly so that I could not access it
c) Told me not to make payments until a later date
d) Did not shift the stipulations in the system when they told me verbally that the no interest would be shifted as well
e) Refused to assist me directly in closing my account
f) Did not close my account in a timely manner and then tell me it was closed when it was not
Please attach my follow up to the record as well and assert that I am glad my money is returned, but I do not accept the glib response from PCI. I can upload any further documents or clarify any points of contention.
Respectfully,
[redacted]
Final Business Response /* (4000, 9, 2015/06/15) */
June 15, 2015
Re: [redacted]
Case No. [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No. [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of June 9, 2015, regarding Mr. [redacted]'s further concerns. Please include this response in your department's permanent record.
It appears that an unfortunate set of circumstances have given rise to Mr. [redacted]'s original and ongoing concerns regarding his account at Preferred Credit, Inc. We regret these circumstances and apologize for any action on our part that may have contributed to the situation.
We regret that Preferred Credit, Inc. was not made aware that the September 20, 2014 contract that was executed by Mr. [redacted], and later verified with our offices on October 1, 2014 and again on October 29, 2014 during a quality assurance call with Mr. [redacted], had been rewritten until December 15, 2015 when Mr. [redacted] contacted our offices unable to access our online payment system. We further regret that we did not receive confirmation of this fact from Mr. [redacted]'s Kirby dealer until December 23, 2014, and that we did not receive a copy of Mr. [redacted]'s rewritten contract until January 9, 2015. Please note that it was only after that time that our records show that we had any contact with Mr. [redacted] since December 15, 2014, and this was done to verify, like we had done previously, the terms of the rewritten contract. We subsequently sent our welcome packet to Mr. [redacted] that included the Federal Truth-in-Lending Act letter on January 27, 2015 when all origination processes had been completed regarding Mr. [redacted]'s rewritten contract.
We also regret that due to these circumstances that this may have created confusion regarding the 3-month-same-as-cash option Mr. [redacted] received on his rewritten contract. The contract Mr. [redacted] originally signed on October 3, 2014 contained a 3-month-same-as-cash option. By the terms of the original contract Mr. [redacted] signed, this required Mr. [redacted] to pay off the original amount financed by January 3, 2015. However, Mr. [redacted]'s contract, as indicated previously, was not received by our offices until January 9, 2015. We verified this contract with Mr. [redacted] the next day and confirmed with him the updated terms of his new contract; including both the effective date of the rewrite as well as Mr. [redacted]'s new first payment date of February 3, 2015. Therefore, in light of these new terms, Mr. [redacted] had effectively until April 3, 2015, and at the latest April 9, 2015, with which to pay off the full balance of the amount financed in order to take advantage of his same-cash-option. While this unfortunately did not occur, his account was ultimately closed as if Mr. [redacted] had properly exercised his same-as-cash option. Mr. [redacted] will therefore be receiving a refund in the amount of $47.45 to cover the payment that was drafted due to the delayed payment by Mr. [redacted]'s dealer in closing out Mr. [redacted]'s account.
Again, we regret the circumstances that may have led to the filing of this complaint and we apologize for any action on our part that may have contributed to the situation.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
October 27, 2016 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you...
for your correspondence of October 17, 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, PCI audited on a regular basis by numerous state agencies. These examinations verify PCI’s compliance with state and federal regulations regarding our financing operations. A review of Mr. [redacted]’ account file reveals that his October 2014 installment was missed, and although he resumed his regular payments in November 2014, the missed October 2014 payment was never made up. Because of this, Mr. [redacted] was essentially always paying one month late and therefore was being charged a monthly late fee. In an October 18, 2016 conversation that Mr. [redacted] had with PCI Senior Account Supervisor Megan [redacted] PCI agreed to waive all of Mr. [redacted]’ late fees, making up his missed October 2014 payment, and bringing his account current. As of the date of this letter, Mr. [redacted]’ account is considered current with his next installment being due on November 10, 2016 in the amount of $95.00. PCI has reported these facts to the credit reporting bureaus. PCI will continue to favorably report on Mr. [redacted] credit as long as he continues to pay his monthly payments in a timely manner. Please note, however, that the reporting agencies may take up to 30 days or longer to update their reports and that this is beyond our control. Should you have any questions or concerns, please do not hesitate to our offices. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/09/16) */
September 16, 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 10, 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 Ms. [redacted]'s purchase of a Kirby home cleaning system from DC Distributors, Inc. of Wilmington, Massachusetts. This is evidenced by the application and retail installment sale agreement completed and executed by Ms. [redacted] on January 14, 2014 and the account verification that was completed with Ms. [redacted] that same day by phone. This phone call verified that the information that Ms. [redacted] provided on her credit application was accurate, that Ms. [redacted] understood the terms of the contract she signed, that Ms. [redacted] 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. With that, the proceeds of Ms. [redacted]'s agreement were sent to DC Distributors, Inc., the original seller.
Our records also indicate that, in conjunction with her retail installment sale agreement, Ms. [redacted] completed and executed an "Authorization for Preauthorized Payments." According to the terms of Ms. [redacted]'s authorization, Ms. [redacted] authorized Preferred Credit to draft payments from her banking account in the amount of $37.67 on the 14th 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. [redacted]'s understanding of these terms were verified during our account verification.
Ms. [redacted]'s present concerns appear to stem from a conversation she had with one of our agents back on June 30, 2015. On that date, Ms. [redacted] contacted our offices and advised our agent, LaDonna [redacted], that she wanted a "bill mailed to my address." Ms. [redacted] proceeded to clarify by asking Ms. [redacted], "You would like to receive a statement?" Ms. [redacted] responded affirmatively and provided the necessary authorization to receive monthly statements.
Unfortunately, this did not appear to be the result Ms. [redacted] intended. On August 19, 2015 Ms. [redacted] contacted our offices to discuss the automatic payment arrangement she believed she had cancelled on June 30, 2015. Our agent reviewed the notes from that date and advised Ms. [redacted] that our records showed no request to stop her automatic payment arrangement. Moreover, our agent advised Ms. [redacted] that in order do so she was required, under the terms of her authorization, to send in written notice of her cancellation. Ms. [redacted] then requested to listen to the recording of that call. Our agent informed Ms. [redacted] in turn that this request would require supervisor review and authorization and that someone would get back with her within 48 hours regarding her request. This did not appear to have occurred. We eventually cancelled Ms. [redacted]'s automatic payment arrangement when Ms. [redacted] sent her cancellation by fax a few days later.
On August 26, 2015, Ms. [redacted] followed up with our offices regarding whether we had reviewed the call recording from June 30th and to request reimbursement for the bank fees she incurred as a result of our drafts on August 17th. Our Customer Service Supervisor Monica [redacted] advised Ms. [redacted] that she would contact Ms. [redacted] after the June 30, 2015 call had been reviewed (which was reviewed that same date). This too did not appear to have been done even by the time Ms. [redacted] contacted our offices again on September 3, 2015 where Ms. [redacted] was again advised that our Customer Service Supervisor would follow up with her.
On September 10, 2015, Ms. [redacted] contacted our offices requesting to speak with Ms. [redacted]. Our agent advised Ms. [redacted] that Ms. [redacted] was not available and was transferred to another supervisor, Chandler [redacted]. Ms. [redacted] spoke with Ms. [redacted] and advised her that the June 30th call had been reviewed and advised that there was no request that had been made to cancel her automatic payments. Ms. [redacted] then requested to listen to the call to which Ms. [redacted] informed Ms. [redacted] that this would need to first get authorized. Our records reflect that at 12:09 p.m. (CST) on that same date our offices attempted to speak with Ms. [redacted] to play the call for Ms. [redacted] to no avail.
We value Ms. [redacted] as a customer and we regret any confusion that stemmed from the conversation that took place on June 30th. We also sincerely apologize for our failure to promptly follow up with her regarding her request. In light of this, Preferred Credit, Inc. will be crediting Ms. [redacted]'s account in the amount of $70, the amount which Ms. [redacted] claims she incurred from her bank related to our August 17th draft. Again, we apologize for these oversights and regret the circumstances which may have led to the present situation.
Finally, we wish to inform Ms. [redacted] and the Revdex.com that we will be reviewing our procedures to see where we may improve so as to avoid these issues 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 Business Response /* (1000, 5, 2015/09/24) */
September 24, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of September 15, 2015, regarding Mr. [redacted]'s cancellation...
concerns. I have taken the opportunity to review the matter and ask that you include this response in your permanent record.
Preferred Credit is please to inform the Revdex.com and Mr. [redacted] that we have reviewed Mr. [redacted]'s concerns with Total Systems, LLC and Preferred Credit will be cancelling Mr. [redacted]'s contract. As result, we have closed Mr. [redacted]'s account, we make no further demand for payment and Preferred Credit has updated all our credit reporting accordingly. For our end, we consider the matter closed.
Please note that Preferred Credit is a regulated lender whose business is limited to the purchase of retail installment contracts from independent sellers of various household products. Given the seller/finance company relationship, Preferred Credit relies on the independent seller in all matters relating to cancellation.
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 /* (2000, 7, 2015/09/24) */
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. We have decided we will choose the payoff within the next three months. Thank nk you for your assistance in this matter. [redacted]
Initial Business Response /* (1000, 5, 2015/10/07) */
October 7, 2015
Re: [redacted]
Case #: # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account #[redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of October 1, 2015 regarding Ms. [redacted]'s concerns. Preferred Credit, Inc....
(PCI) is pleased to inform Ms. [redacted] and the Revdex.com that on October 2, 2015 our offices issued check in the amount of $300.00 to Ms. [redacted] in an effort to resolve the matter. Nonetheless, 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. [redacted] and her spouse, [redacted]'s purchase of a Kirby home cleaning system from Gonzales Enterprise of Bakersfield, California. This is evidenced by the retail installment contract Mr. and Mrs. [redacted] executed on November 28, 2014. According to that contract, the [redacted]'s agreed to finance $2,000.00 over twenty-four equal installments of $103.73 commencing January 19, 2015.
PCI first became aware that the [redacted]'s had a concern regarding unauthorized transactions on their bank account when Mr. [redacted] called our offices on April 8, 2015 and advised that he was notified by his bank that our offices had made an ACH withdrawal of $100.00 from his account on that same date. One month later, on May 8, 2015, Mr. [redacted] called our offices again and advised that another $100.00 withdrawal had been made by PCI. On both occasions our customer representative reviewed the [redacted]'s account and found no ACH payment had occurred on their account. Our office advised Mr. [redacted] of this and requested that he confirm with his bank that such transactions were taken by our offices.
This issue was not raised again until approximately nine weeks later on September 23, 2015 when Mrs. [redacted] called our offices. Mrs. [redacted] advised that their bank account statement revealed that three $100.00 ACH payments (one each in February, March and April 2015) had been taken from their bank account by PCI. Our representative requested that Mrs. [redacted] forward to us a copy of her bank statement that represented the ACH withdrawals by our offices.
The following day on September 24, 2015, our offices received a copy of the [redacted]'s bank statement which indicated four ACH withdrawals, each for the amount of $100.00, were made on February 9, 2015, March 9, 2015, April 9, 2015 and May 11, 2015 taken by our offices. These withdrawals were not reflective in PCI's account for Mr. and Mrs. [redacted]. The bank statement also indicated that on May 27, 2015, the [redacted]'s disputed one of the $100.00 ACH withdrawals and the funds were reversed from our bank account and credited back to the [redacted]'s bank account. Therefore leaving $300.00 at issue.
The information provided by the [redacted]'s was immediately forwarded to our account department for review. Unfortunately, it appears that our customer service representative that assisted the [redacted]'s in scheduling a one-time ACH payment in February 2015, erroneously set up automatic ACH payments for another PCI account to be drawn upon the [redacted]'s bank account used in the February 2015 transaction. We sincerely apologize for this error and for any inconvenience this may have caused the [redacted]'s. On October 2, 2015 our offices mailed a check for $300.00, representing the three $100.00 transactions that were honored by the [redacted]'s bank.
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 /* (2000, 6, 2015/10/07) */
November 9, 2016 Re: [redacted] Case ID: [redacted] Our account #: Dear Mr. [redacted]: Thank you for your...
letter of November 8, 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) is financing the purchase of a $2708.64 Kirby home cleaning system from HNM Distributions, Inc. of Tucson, Arizona for [redacted]. This is evidenced by the retail installment contract and associated credit application he completed and executed on January 8, 2016 to which he agreed to make minimum monthly payments of $75.24 by the 20th of each month commencing February 20, 2016. A review of Mr. [redacted]’s payment history shows that Mr. [redacted] has remained current in his contractual obligation to repay his debt and has chosen to make payments over the minimum amount of $75.24 in an effort to pay off his account early. In fact, he has made nine payments totaling $1500.00. Mr. [redacted]’s complaint appears to have stemmed from a misunderstanding that occurred on November 7, 2016. On November 7, 2016, we now understand that Mr. [redacted]’s spouse contacted our offices seeking to pay off her account in 12 months. Our agent misunderstood this request as our agent thought Mrs. [redacted] was looking to convert a 36-month contract to a 12 month contract. This misunderstanding led our agent to inform Ms. [redacted] that the terms could not be changed and that only a one-time payoff amount could be provided. This was unfortunate. Once this matter was brought to our attention, PCI subsequently reached out to Mrs. [redacted] in an effort to clear up the confusion. Fortunately, on November 8, 2016, Mrs. [redacted] spoke with supervisor Cassie [redacted] regarding this confusion. During this call, Mrs. [redacted] was advised that if payments of $283.22 were made for the next three months, the account would be considered paid in full. This would essentially turn Mr. [redacted]’s 36 month contract into a 12 month contract as the [redacted]’s were requesting. Mrs. [redacted] then requested a onetime payoff quote for her November 20, 2016 payment. Mrs. [redacted] was advised that this amount would be $794.85. Mrs. [redacted] indicated she intends to pay off the entirety of the remaining balance at that time. We sincerely regret the circumstances which led to this complaint. Nevertheless, with the aforementioned actions, we 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
January 30, 2017 Re: [redacted] N [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for...
your letter of January 23, 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing Mrs. [redacted]’s purchase of a Kirby home cleaning system from Perseverance, Inc. of Layton, Utah. On June 10, 2016, Mrs. [redacted] completed a credit application and retail installment contract. According to her contract, Mrs. [redacted] agreed to make equal monthly installments of $99.16 due on the 1st of each month through automatic payments through her Mountain America Credit Union checking account ending in [redacted]. Please note that the salesperson advised our offices on that same date that Mrs. [redacted] was offered a 12 month same as cash promotional option. 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 a Senior Account Representative, by phone, with Mrs. [redacted], on June 10, 2016 at 7:35 pm (CST). At no time did Mrs. [redacted] express concern, dissatisfaction or doubt about her purchase. During the course of the conversation with Mrs. [redacted], she was advised that her agreement included a 12-month same as cash option. Mrs. [redacted] was asked if she understood what that meant, to which Mrs. [redacted] responded, “Yeah, I guess if I pay it off in the first 12 months the finance charge is waived, or something like that?” To which the PCI Senior Account Representative responded “Right.” Mrs. [redacted] then asked “And would that 12 months start from the first of August?” To which the PCI Senior Account Representative responded “No. It would start from the date of the signing of the contract.” If Mrs. [redacted] had any further questions regarding the promotional option, we would have clarified that matter with Mrs. [redacted] and the original seller at that time. Our records indicate this to not be the case. There was no further discussion regarding the promotional option. 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 agreement is similarly constructed to help ensure she understands the financing she is requesting in accordance with applicable state and federal law. The terms related to “Same as Cash Plan” were disclosed in paragraph 20 in Mrs. [redacted]’s contract. As part of our quality assurance program, we attempted to follow up with Mrs. [redacted] regarding her financing on multiple occasions beginning on June 20, 2016 and through December 15, 2016. Unfortunately, our offices were unsuccessful in reaching Mrs. [redacted] via telephone during this time. However, PCI was able to contact the co-buyer Ms. Aretta Butler who indicated that, to the best of her knowledge, everything was working fine with the products and that Mrs. [redacted] had received all of the products promised by the dealer. A review of Ms. [redacted]’s account file indicates that Mrs. [redacted]’s automatic payment on December 1, 2016, was returned due to non-sufficient funds. As a result, Mrs. [redacted]’s account was removed from the automatic payment program. Subsequently, her December 19, 2016 and January 3, 2016 attempts at payment were also returned due to non-sufficient funds. Her monthly statement provided Mrs. [redacted] detailed information regarding her account including the accrual of interest. Our offices also continued our efforts in attempting to reach Mrs. [redacted] by calling her on the telephone numbers she provided with her application. On December 15, 2016 at 8:12 pm (CST) Mrs. [redacted] called into PCI and made a promise to make a payment of $124.00, which was broken when her December 19, 2016 payment attempt was returned due to non-sufficient funds. Again, on December 23, 2016 at 4:49 pm (CST) Mrs. [redacted] called in to inform PCI that she had made her payment online. A Senior Account Representative informed Mrs. [redacted] that multiple attempts at payment had been returned due to non-sufficient funds and Mrs. [redacted] hung up. The first communication our offices had with Mrs. [redacted] regarding her “same as cash” option occurred on January 22, 2017 at 6:46 pm (CST). During this call a PCI Senior Account Supervisor advised Mrs. [redacted] that, per the “same as cash” clause on the back of her contract, because her December payment was late, she would no longer be eligible for the “same as cash” promotion. At this point, Mrs. [redacted] refused to make any further payments. Mrs. [redacted] reached out to PCI via e-mail on January 23, 2017 stating that it is wrong to take away her “same as cash” option when the year is not up and she is enduring hardship while her husband is deployed. She also claimed that the details of the “same as cash” option were never disclosed prior to signing the contract. This is in direct conflict with the June 10, 2016 verification call where Mrs. [redacted] indicated she understood what the “same as cash” option entailed. Nevertheless, PCI prides itself as being a relationship-driven company. PCI will reinstate Mrs. [redacted]’s same as cash option upon completion of the following conditions. First, Mrs. [redacted] must re-enroll in automatic payments. Additionally, she will need to bring her account current, including all currently applied fees, as soon as possible. As of the date of this letter, the amount needed to bring Mrs. [redacted]’s account current is $437.48. Once these conditions are satisfied, should Mrs. [redacted] continue to make at least her minimum monthly installment and pay off her amount financed before the expiration of her option, all interest will be waived. However, should Mrs. [redacted] fail to satisfy the previously stated conditions, or make her regular monthly installment in the future, her same as cash option will be voided. We believe this to be more than fair under the circumstances. As stated previously, Mrs. [redacted]’s account is currently not set up for recurring automatic payments. If Mrs. [redacted] would like to re-set her automatic payments, we would ask her to call our Customer Service department during normal operating hours, Monday through Friday from 7 a.m. to 11 p.m. (CST), on Saturdays from 8 a.m. to 5 p.m., and Sundays from 12 p.m. to 9 p.m. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/12/23) */
December 23, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of December 17, 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 Preferred Credit, Inc. (PCI) is a sales finance company incorporated in the State of Minnesota and licensed in the states that we do business. Our business is limited to the purchase of sales finance agreements 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 relationship. This 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 agreement terms and to ensure we have a legally valid and binding agreement.
Our records indicate that Ms. [redacted] sought to purchase a Rain Soft water treatment system on November 21, 2015 from [redacted] of Pompano Beach, Florida. Opting not to purchase the merchandise outright by cash, check or credit card, Ms. [redacted] elected to have her dealer seek out financing by completing and executing a purchase order and associated retail charge agreement that same day.
Our records also indicate that on or around August 12, 2015, PCI account representatives spoke with both Ms. [redacted], and her husband [redacted], regarding her request for financing and to verify that the information Ms. [redacted] provided with her agreement was accurate, that they understood the terms of the agreement she signed, that the monthly payments required under the agreement fit into their monthly budget, that Ms. [redacted] was not a victim of identity theft, that Ms. [redacted] was happy with the purchase, and that the original seller fulfilled all of the promises made during the presentation. Satisfied with their responses, we subsequently informed Ms. [redacted] she had been approved for financing.
In turn, as a relationship-driven company, special effort is made in order to help our customers manage their accounts. We do this as it is in both the financial interest of the customer as well as PCI that payment be made on a timely basis. We therefore employ special calling and letter campaigns to help alert customers as to their account status so that they can avoid unnecessary fees and adverse credit reporting; all within the standards provided under applicable state and federal law.
Finally, please note that Ms. [redacted] had until midnight of August 10, 2015, to cancel her purchase. The notice of cancellation provided that Ms. [redacted] could cancel her purchase by sending or delivering the cancellation notice provided with her paperwork or by sending any other written notice to the original seller, [redacted] 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, Ms. [redacted]'s own correspondence with the Revdex.com seems to indicate that only phone calls were made. Because Ms. [redacted] failed to cancel the agreement accordingly, the agreement remains in full force and effect, as intended, upon Ms. [redacted]'s signature on the agreement and the passing of the appropriate rescission period.
Nevertheless, PCI is pleased to inform Mrs. [redacted] and your office that PCI, as a relationship-driven company, has decided to close Mrs. [redacted]'s account with our offices and make no further demand for payment. Therefore, we will update our reporting with the credit reporting agencies accordingly and consider the matter closed. However, we understand that [redacted], will be contacting Mrs. [redacted] to coordinate the return of all merchandise.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Final Business Response /* (4000, 12, 2016/01/25) */
Mr. [redacted]:
We wanted to inform you as to an update on the below complaint. As you will note, Mrs. [redacted] had certain concerns regarding the sale, installation and service she received from [redacted] regarding the water treatment system she purchased from them. She therefore sought to have her account closed. We, in turn, fulfilled Mrs. [redacted]'s request and closed her account. The Revdex.com subsequently closed the complaint on January 13, 2016 as no further word had been received from Mrs. [redacted] regarding her concerns.
Since our initial response, it appears Mrs. [redacted] has had a change of heart. Now, instead of cancelling her account as originally intended, Mrs. [redacted] and her husband would like to keep the merchandise, albeit at half the price. The distributor subsequently contacted our offices to see if we could finance their purchase under the new terms. We stated we could provided that we could verify with the Mr. and Mrs. [redacted] that this is indeed their intent.
We have since received confirmation of their intent to purchase on January 19, 2016 when we spoke with Mr. [redacted] by phone. We therefore provided the financing they requested under the new terms of the deal they struck with the distributor. We now wish to inform the Revdex.com of this development in light of our previous response.
Should you have any questions or concerns, please do not hesitate to contact us.
Sincerely,
John [redacted]
Compliance Manager
Preferred Credit, Inc.
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 help and the business cooperation to resolve tgis issue in a professional and timely manner. I will resume paying monthly as agreed due to this outcome. Thanks I appreciate it. Just ensure the business mails me a documented copy of the waiver as proof.
I am rejecting this response because:According to the information provided by PCI, the information reported is incorrect.PCI has not reported the account as paid in full instead PCI is reporting the account as still being late according to several different credit trackers that I have. If the account was reported as anything else then it would be noted on the account. It is understood that the credit bureaus report usually within 30 days and pass this information to credit trackers etc. there is no reason that a late payment would be reported before the acct paid in full would. PCI knows they are in error of reporting accurately and they are intent on trying to prove different. While I am happy with the product,PCI has been anything less than the stellar company they claim to be.
April 3, 2017 Re: [redacted] A [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for your...
letter of April 3, 2017 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing Ms. [redacted]’ purchase of a Kirby home cleaning system from Denver Distributing, Inc. of Engelwood, Colorado. On March 12, 2017 Ms. [redacted] completed a retail installment contract and credit application. According to his contract, Ms. [redacted] agreed to make forty-eight (48) monthly payments of $63.93 due on the 2nd of each month beginning on May 2, 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 a Senior Account Representative, by phone, with Ms. [redacted], on March 12, 2017 at 6:05 pm (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about his purchase. Satisfied with her responses, we subsequently informed Ms. [redacted] she had been approved for financing. In addition, please note that Ms. [redacted] had until midnight of March 15, 2017, to cancel her contract. The notice of cancellation provided that Ms. [redacted] could cancel her purchase by sending or delivering the cancellation notice provided with her paperwork or by sending any other written notice to the original seller, Denver Distributing, 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, Ms. [redacted] own correspondence with PCI seems to indicate that the first time she notified us of her intention to cancel occurred on March 28, 2017, well outside of her cancellation period. Because Ms. [redacted] failed to cancel the contract accordingly, the agreement remains in full force and effect, as intended, upon Ms. [redacted]’ signature on the contract and the passing of the appropriate rescission period. Nevertheless, as a relationship driven company, PCI reached out to Denver Distributing, Inc. to determine an appropriate resolution, and received confirmation that because Ms. [redacted] did not provide written notice of her intention to cancel prior to midnight of March 15, 2017, the contract remains in full effect. Therefore, Ms. [redacted] will be responsible for complete repayment of her contractual obligation. As of the date of this letter, Ms. [redacted] has a balance of $3068.64 and, as a secured creditor, PCI expects full and complete repayment of the debt. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
I am rejecting this response because: As stated I provided the people selling the Kirby Vacuum cleaner with all of my information. At no point in time did I speak with anyone to authorize a contract. I will listen to the call however the call is not going to be me because I did not accept any contract or payment installments with anyone. I was told that the application for credit was denied.
Initial Business Response /* (1000, 5, 2016/02/02) */
February 2, 2016
Re: [redacted]
Case# # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of January 25, 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.
First and foremost, Preferred Credit, Inc. ("PCI") is a great supporter of our military and its service members. We understand that there is a great deal of sacrifice borne by our service men and women and we are thankful for the sacrifice.
Preferred Credit, Inc. ("PCI") is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household products. PCI'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 PCI.
Our records indicate that we financed Mr. [redacted]'s purchase of a Kirby home cleaning system from KLS & Associates of Louisville, Kentucky. This is evidenced by the credit application and retail installment contract completed and executed by Mr. [redacted] on November 7, 2007 and the account verification that was completed with Mr. [redacted] by phone on November 7, 2007 at 7:23 pm (CST). According to the contract he signed, Mr. [redacted] agreed to finance $1,500.00 over thirty-six equal installments of $58.52 commencing February 7, 2008.
An examination of Mr. [redacted]'s account file indicates that all reporting to the credit bureaus were rightfully submitted. A review of Mr. [redacted]'s payment history reveals that Mr. [redacted]'s bank did not honor his August 2009 installment for non-sufficient funds. Additionally, no installment was received for the months of September 2009 through January 2010. While Mr. [redacted] resumed making installments in late January 2010, the missed August 2009 installment was not addressed and therefore Mr. [redacted]'s account remained in arrears. Fortunately, however Mr. [redacted] was able to become current in January 2011 before paying his account in full in May 2011.
PCI's policy, in regard to credit report disputes, is reflective of proper legal and industry standards. PCI is entitled by law to report to credit bureaus the positive or negative standing of any account established by virtue of the extension of credit. In turn, any credit reporting is indicative of the account's performance and any misreporting of the credit bureau will be corrected upon valid evidence attesting to the contrary. To make any changes to our credit reporting without valid evidence to the contrary would violate the Fair Credit Reporting Act. As no such evidence has been provided by Mr. [redacted] nor does such exist in our records, Preferred Credit has reported the account's performance and standing appropriately.
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, 2016/02/03) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I do not have the name of who whe spoke with, but we were tod that if we pay the missed months the accoun would be current and there would be no late paymenst accessed to my account. Plus the item should hve been close to being paid off by the time you all were stating it was late. $1400 of the $1500 that was financiewd was paid during that time. Are you saying I was in the arrears for 19 months over $100 when I olny had 12 payments left on the loan? This does not add up to me. Please updated or delete my acount. In advance thank you.
Final Business Response /* (4000, 9, 2016/02/12) */
February 12, 2016
Re: [redacted]
Case# # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of February 4, 2016. In reviewing our response anew we now understand where the confusion lies. We hope therefore that we can clarify the matter for Mr. [redacted].
In our previous response, we stated that Mr. [redacted]'s August 2009 installment was dishonored by his bank thereby placing his account in arrears. We also stated that though Mr. [redacted] resumed making payments in late January 2010 he failed to make up this payment and therefore his account remained in arrears.
However, we also stated that Mr. [redacted] was able to become current in January 2011 thereby implying that Mr. [redacted] had made sufficient enough payments to make up for any past due amount before ultimately paying off his account in May of 2011. This is incorrect and we apologize for this oversight.
In reviewing Mr. [redacted]'s payment history anew, Mr. [redacted]'s payment history indicates that he was not actually able to bring his account current until May of 2011 when he ultimately paid off his account in full. This is due not only to the fact that Mr. [redacted] failed address his August 2009 installment but those scheduled installments from September 2009 through January 2010 as previously indicated. In fact, when Mr. [redacted] began making payments after his January installment was due, he failed to make any payment greater than his regular installment amount for the duration of his account (excluding his final payoff amount of course). Moreover, because he was only making, at most, his regular installment amount, his account ultimately reached maturity in February of 2011. Therefore, it initially appeared that Mr. [redacted] had brought his account current as all late fees ceased when the account reached maturity and Mr. [redacted] continued to make payment until his ultimate payoff in May of 2014.
Finally, in reviewing our files, we have been unable to find any record that would seem to indicate that by paying off his account we would ensure no late payments would be recorded on Mr. [redacted]'s account. In fact, to do so, would be violation of the Fair Credit Reporting Act. However, what our records do show is that our agent agreed to waive a number of late fees in exchange for a payoff Mr. [redacted] authorized in May. As indicated previously this act not only paid of his account but brought his account current. Perhaps that is the source for that misunderstanding.
Again, we sincerely apologize for our oversight and for the confusion it has caused.
Sincerely,
John [redacted]
Compliance Manager
Final Consumer Response /* (3000, 11, 2016/02/16) */
(The consumer indicated he/she DID NOT accept the response from the business.)
Because now you all are stating that now I was confused. No, You stated one thing before now you all are stating something else. Stating that you were incorrect and apologizing for an oversight? I think that Preferred Credit is being disingenuous. No, it is not a misunderstanding on my part. Although this file will come off my credit report in a matter of months, this still does not make the process and procedures that Preferred Credit are using correct. I will escalate this situation to the Federal Trade Commission and to the Consumer Financial Protection Bureau, referencing what was stated on the previous response and now what is being called a misunderstanding and oversight. The Fair Credit Reporting Act states Fair Credit Reporting Act does not demand that all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company does have legal discretion and permission to remove or update any account it chooses from the credit report. I'm hoping that I will not have to escalate this matter and Preferred Credit will do that in my case for this account.
I am rejecting this response because:
Good Evening Mr. [redacted], Before I am resigned to accept this offer I wanted to share with you additional evidence that further highlights the lack of clear and concise lending practices of PCI. I have attached for you two documents that in no way show, explain, or confirm we were notified or agreed to pay interest with this balance. As will find the checkbox for interest was not checked and the official assignment document did not include this information. Additionally I still am unclear as to why I am not being provided the recorded phone call that would allow me to hear if I agreed verbally to any interest rate. Please let me know if we need to further discuss, or if there are any additional options available to me. I have included my cell phone number below. Thank you in advance for your time and assistance. -[redacted]###-###-####
February 13, 2017 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you for your correspondence of February 10, 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. As a regulated sales finance company, PCI’s 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 ensure that our customer’s understand their obligations and our financing relationship. This includes taking the opportunity to review their request for financing with the individual personally as well as provide the consumer with complete and accurate disclosures, in the form of an agreement, pursuant to applicable law. Despite these efforts, there appears to be some lingering confusion as to nature of the agreement Ms. [redacted] reviewed and agreed. Ms. [redacted] presents two forms for the Revdex.com’s review: a welcome/assignment notice and the purchase order. Please note that neither were developed to address the concerns Ms. [redacted] has regarding her financing. The welcome/assignment notice simply informs Ms. [redacted] that PCI has purchased her contract from the distributor and the purchase order merely identifies what purchase is being applied to her agreement. The information relevant to Ms. [redacted]’s concerns is contained under the heading “Additional Terms and Disclosures” portion of her agreement. Attached you will find a copy of the “Additional Terms and Disclosures” that accompanied Ms. [redacted]’s executed retail charge agreement. Additionally, PCI generally records its calls for quality assurance purposes. They are not generally released for any other purpose. Nevertheless, if Ms. [redacted] would be willing to call into our customer service line at ###-###-####, and ask for either Bridget [redacted] or Megan [redacted] they could play the October 19, 2016 verification call for her over the phone. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. 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.
Sincerely,
[redacted]
June 22, 2016 Re: [redacted] M. [redacted] Complaint ID #: [redacted] Our account #: [redacted] Dear Mr. [redacted]: Thank...
you for your e-mail of June 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing the purchase of a Rainbow Home Cleaning System from D & H Quality Air in Manassas, VA for Ms. [redacted]. Ms. [redacted] completed an application for credit and entered into a retail installment contract on June 9, 2015. According to the contract Ms. [redacted] executed, she financed $2,993.35 to be repaid over 36 equal monthly installments of $118.38 to commence on September 15, 2015. Great care is taken in the proper servicing, management and collection of all Preferred Credit accounts. Prior to the extension of credit, on June 9, 2015, a senior account representative, spoke with Ms. [redacted] at 7:43 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. Ms. [redacted]’s present concerns arises from a call made by Ms. [redacted] on May 9, 2016 at 10:46 a.m. (CST) requesting that her payments be lowered due to recent economic hardship. A PCI representative informed Ms. [redacted] that her payment could potentially be cut in half for a three-month period, pending the approval of a supervisor. During the same call, the supervisor approved this arrangement, resulting in Ms. [redacted]’s payment being lowered to $60.00 per month for the next three months. Ms. [redacted] was then asked if she would like to set up a method of payment and Ms. [redacted] indicated that she would be paying online. Unfortunately, at no point during this call was Ms. [redacted] made aware that her election to make payments online would not remove her from our regular recovery efforts as she had not made a secured arrangement. If Ms. [redacted] had been informed of this fact and opted to set up some form of automatic payment, she would have been relieved from normal recovery activities during the three-month span in question. Therefore, by electing to pay manually online each month, her $60.00 payments were viewed as being insufficient and prompted those activities. In light of the foregoing, it appears there was a miscommunication between the PCI representative and Ms. [redacted] as to how her reduced payments would be made and the potential results of that choice. We sincerely apologize for not clarifying this with Ms. [redacted]. Please note that we have taken the appropriate corrective actions on Ms. [redacted]’s account to ensure her account reflects the arrangement she secured with our agent on May 9, 2016 both internally and with the credit bureaus; this includes the rewriting of Ms. [redacted]’s account and waiver of all fees. We have taken similar corrective actions with the agent who worked with Ms. [redacted] and took the opportunity to review our protocols so as to prevent this issue in the future. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/09/01) */
September 1, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Client No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of August 24, 2015 letter, regarding Mr. [redacted]'s concerns. While sufficient...
information to identify the specific accounts Mr. [redacted] refers to in his correspondence was not provided, 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. ("PCI") is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household products. PCI's credit policy is 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 gender, age, marital status, national origin, etc. are not taken into consideration by PCI.
To ensure our customers understand the contract they signed, PCI employs an industry leading contract verification process. As part of this verification procedure, a PCI senior account representative speaks with the customer to verify, among other things, that all information contained in the application was accurate. PCI also verifies employment and income. Any false personal information or acknowledgment of improper sales techniques found during the verification process will result in the turndown of the contract and no credit will be extended. Fundamental changes, depending on the nature and extent of those changes, in the original application may also serve as a basis for the application to be turned down.
If the customer's income reported on his/her application cannot be verified we notify the Client. We also advise the Client that if proof of additional income can be provided we will review the application again to determine if we can honor the original approval.
PCI considers itself to be a relationship-driven company. We therefore appreciate any and all feedback in order to ensure we provide the best possible experience and level of customer service. We encourage Mr. [redacted] to contact us directly so that his concerns may be specifically addressed.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Business Response /* (1000, 5, 2015/06/04) */
June 4, 2015
Re: [redacted]
Case No. [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No. [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence regarding Mr. [redacted]'s concerns. We are pleased to inform the Better...
Business Bureau and Mr. [redacted] that we will be refunding Mr. [redacted]'s last payment of $47.45. Nevertheless, we ask that you include this statement of our position in your department's permanent record.
First and foremost, Preferred Credit, Inc. (PCI) believes Mr. [redacted] to be a wonderful customer and we thank him for his business. While we cannot support his claim that he was erroneously charged interest on his loan, we can provide information that we believe can bring some clarity to this situation.
Our records indicate that PCI financed Mr. [redacted]'s purchase of a Kirby home maintenance system from [redacted], LLC of San Diego, California. Mr. [redacted] financed $1,200.00 over 36 equal installments of $47.45 due on the 3rd of each month with the first payment due February 3, 2015 under the revised terms of the contract he originally signed in October of 2014. Nevertheless, in both cases, Mr. [redacted] was provided a three-month-same-as-cash option which his contract states the following regarding that promotional option:
"If you make all your payments on time and pay the entire balance within the promotional period from the date of the Contract, we will waive all finance charges. Otherwise, you will pay all amounts due on this Contract as stated above on the front side of this Contract."
A review of Mr. [redacted]'s account indicates that he had failed to meet the terms of his same-as-cash option. As indicated previously, Mr. [redacted] needed to satisfy the following conditions in order to take advantage of his three-month-same-as-cash promotion:
1. Make all payments on time (i.e. in the amount and by the due date indicated in the contract); and
2. Pay the entire amount financed within the promotional period (i.e. the amount financed needed to be paid by April 3, 2015).
We commend Mr. [redacted] for making his payments on time, however, Mr. [redacted] failed to meet the second requirement. Our records indicate that Mr. [redacted] only made payments totaling $847.45 by April 3, 2015 thereby negating his same-as-cash option.
Our records also indicate that Mr. [redacted] called our offices on April 21, 2015 inquiring about the status of his account and his belief that his obligation had been paid in full. Our representative explained to Mr. [redacted] that the same-as-cash promotion ended three months following the date of the contract and therefore there was a balance due on this account.
Nevertheless, PCI, as a relationship-driven company, reached out to [redacted], LLC, the original independent seller, regarding Mr. [redacted]'s concerns. [redacted], LLC graciously offered to pay the balance of Mr. [redacted]'s obligation. Mr. [redacted] was advised on April 26, 2015 that the matter had been resolved and his account would be closed.
Unfortunately, our system was not yet updated with the payment from [redacted], LLC by the time Mr. [redacted]'s next monthly payment of $47.45 was due and an automatic withdrawal of his payment was completed on May 4, 2015. We regret any inconvenience this has caused Mr. [redacted] and strive to provide great care in the proper servicing, management and collection of all PCI accounts. We regret if Mr. [redacted] felt PCI was not responsive to his situation leaving him no choice but to file a complaint with the Revdex.com, but PCI was diligently working on addressing his concerns and working through the process of updating and closing his account.
As referenced above the original seller has taken care of the balance of Mr. [redacted]'s obligation with PCI, a refund of $47.45 will be forwarded to Mr. [redacted] and his account with PCI will be closed. We assume Mr. [redacted] will find this to be a suitable resolution to the matter and PCI will close his file regarding this matter.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (3000, 7, 2015/06/08) */
(The consumer indicated he/she DID NOT accept the response from the business.)
While I appreciate the company refunding the money that they should not have taken from me (after 22 days, numerous phone calls and getting the Revdex.com involved) there is some incorrect information in Mr. [redacted]'s response.
Let's start from the beginning with the initial purchase: I entered into a contract agreement with Kirby on 30 SEPT 2014. This contract agreement was voided and subsequently rewritten on 03 OCT 2014. Kirby stated that the terms of the new contract were to be 6 months no interest and 3 months no payments due. The contract reflected these terms by stating that our first payment was due on 03 JAN 2015 and that we had 3 months "same as cash" starting from 03 JAN 2015 as well. I was sent a "Federal Truth in Lending Disclosure" form from PCI dated 07 OCT 2014 for the initial, voided contract. I never received an updated form for the new contract so on 15 DEC 2015 I called PCI and requested to know why I had not received an updated copy and how I should go about paying on 03 JAN 2015. At this time it was also discovered that both my name and social security number were incorrect which caused me not to be able to log in to my account. I was told explicitly not to make payments until I received a new copy of the "Federal Truth in Lending Disclosure" form. PCI contacted me on 13 JAN 2015 to ask whether I had received the form yet, which I had not. They said that it would be there soon and to hold off on making any payments until 03 FEB 2015, explicitly stating this would be the new first payment date. I was informed that my "same as cash" option would not take effect until 03 FEB 2015. Please see attached that this form was not even generated until 27 JAN 2015. At this point my "same as cash" 3 month policy would be from 03 FEB 2015 to 03 MAY 2015. I fulfilled all payments between 03 FEB 2015 and 08 APR 2015, well within my 3 month limit. However, PCI had not adjusted this in their system when they verbally confirmed it with me which caused interest to generate starting on 03 APR 2015 when it shouldn't have until 03 MAY 2015. Assuming I had fulfilled my portion of the contract I called PCI on 21 APR 2015 to inquire about my account. During this conversation I was told that I had not made all of my payments and that a balance still remained (this is how I know they did not shift the "same as cash" dates). The associate was rather rude to me during this call and absolutely refused to acknowledge my complaint or help me in any way. Later that day I went to the local Kirby/Paradigm office to discuss this with them directly. Having come to the conclusion that I had completely fulfilled my contract, they contacted PCI to close my account. On 26 APR 2015 PCI called me to ensure my account was closed and all matters resolved and was assured that everything was fine. Which leads us to 04 MAY 2015 when my account wasn't closed and subsequently charged.
I counter that I did not fail to meet the "same as cash" stipulation as explained to me. Had PCI sent out the FTiLD form sooner (sometime between 03 OCT 2014 and 03 JAN 2015) and had they not shifted my new payment start date to 03 FEB 2015, none of this would have been an issue, as I was fully prepared to complete my payments between 03 JAN 2015 and 03 APRIL 2015. After calling 4 times and told every time that the matter would be resolved by some future date only to have that date pass by left me with no choice but to contact the Revdex.com. I do not appreciate being told that I failed to follow guidelines when PCI:
a) Did not update the FTiLD form expeditiously
b) Set up my account incorrectly so that I could not access it
c) Told me not to make payments until a later date
d) Did not shift the stipulations in the system when they told me verbally that the no interest would be shifted as well
e) Refused to assist me directly in closing my account
f) Did not close my account in a timely manner and then tell me it was closed when it was not
Please attach my follow up to the record as well and assert that I am glad my money is returned, but I do not accept the glib response from PCI. I can upload any further documents or clarify any points of contention.
Respectfully,
[redacted]
Final Business Response /* (4000, 9, 2015/06/15) */
June 15, 2015
Re: [redacted]
Case No. [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No. [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of June 9, 2015, regarding Mr. [redacted]'s further concerns. Please include this response in your department's permanent record.
It appears that an unfortunate set of circumstances have given rise to Mr. [redacted]'s original and ongoing concerns regarding his account at Preferred Credit, Inc. We regret these circumstances and apologize for any action on our part that may have contributed to the situation.
We regret that Preferred Credit, Inc. was not made aware that the September 20, 2014 contract that was executed by Mr. [redacted], and later verified with our offices on October 1, 2014 and again on October 29, 2014 during a quality assurance call with Mr. [redacted], had been rewritten until December 15, 2015 when Mr. [redacted] contacted our offices unable to access our online payment system. We further regret that we did not receive confirmation of this fact from Mr. [redacted]'s Kirby dealer until December 23, 2014, and that we did not receive a copy of Mr. [redacted]'s rewritten contract until January 9, 2015. Please note that it was only after that time that our records show that we had any contact with Mr. [redacted] since December 15, 2014, and this was done to verify, like we had done previously, the terms of the rewritten contract. We subsequently sent our welcome packet to Mr. [redacted] that included the Federal Truth-in-Lending Act letter on January 27, 2015 when all origination processes had been completed regarding Mr. [redacted]'s rewritten contract.
We also regret that due to these circumstances that this may have created confusion regarding the 3-month-same-as-cash option Mr. [redacted] received on his rewritten contract. The contract Mr. [redacted] originally signed on October 3, 2014 contained a 3-month-same-as-cash option. By the terms of the original contract Mr. [redacted] signed, this required Mr. [redacted] to pay off the original amount financed by January 3, 2015. However, Mr. [redacted]'s contract, as indicated previously, was not received by our offices until January 9, 2015. We verified this contract with Mr. [redacted] the next day and confirmed with him the updated terms of his new contract; including both the effective date of the rewrite as well as Mr. [redacted]'s new first payment date of February 3, 2015. Therefore, in light of these new terms, Mr. [redacted] had effectively until April 3, 2015, and at the latest April 9, 2015, with which to pay off the full balance of the amount financed in order to take advantage of his same-cash-option. While this unfortunately did not occur, his account was ultimately closed as if Mr. [redacted] had properly exercised his same-as-cash option. Mr. [redacted] will therefore be receiving a refund in the amount of $47.45 to cover the payment that was drafted due to the delayed payment by Mr. [redacted]'s dealer in closing out Mr. [redacted]'s account.
Again, we regret the circumstances that may have led to the filing of this complaint and we apologize for any action on our part that may have contributed to the situation.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
October 27, 2016 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you...
for your correspondence of October 17, 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, PCI audited on a regular basis by numerous state agencies. These examinations verify PCI’s compliance with state and federal regulations regarding our financing operations. A review of Mr. [redacted]’ account file reveals that his October 2014 installment was missed, and although he resumed his regular payments in November 2014, the missed October 2014 payment was never made up. Because of this, Mr. [redacted] was essentially always paying one month late and therefore was being charged a monthly late fee. In an October 18, 2016 conversation that Mr. [redacted] had with PCI Senior Account Supervisor Megan [redacted] PCI agreed to waive all of Mr. [redacted]’ late fees, making up his missed October 2014 payment, and bringing his account current. As of the date of this letter, Mr. [redacted]’ account is considered current with his next installment being due on November 10, 2016 in the amount of $95.00. PCI has reported these facts to the credit reporting bureaus. PCI will continue to favorably report on Mr. [redacted] credit as long as he continues to pay his monthly payments in a timely manner. Please note, however, that the reporting agencies may take up to 30 days or longer to update their reports and that this is beyond our control. Should you have any questions or concerns, please do not hesitate to our offices. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/09/16) */
September 16, 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 10, 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 Ms. [redacted]'s purchase of a Kirby home cleaning system from DC Distributors, Inc. of Wilmington, Massachusetts. This is evidenced by the application and retail installment sale agreement completed and executed by Ms. [redacted] on January 14, 2014 and the account verification that was completed with Ms. [redacted] that same day by phone. This phone call verified that the information that Ms. [redacted] provided on her credit application was accurate, that Ms. [redacted] understood the terms of the contract she signed, that Ms. [redacted] 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. With that, the proceeds of Ms. [redacted]'s agreement were sent to DC Distributors, Inc., the original seller.
Our records also indicate that, in conjunction with her retail installment sale agreement, Ms. [redacted] completed and executed an "Authorization for Preauthorized Payments." According to the terms of Ms. [redacted]'s authorization, Ms. [redacted] authorized Preferred Credit to draft payments from her banking account in the amount of $37.67 on the 14th 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. [redacted]'s understanding of these terms were verified during our account verification.
Ms. [redacted]'s present concerns appear to stem from a conversation she had with one of our agents back on June 30, 2015. On that date, Ms. [redacted] contacted our offices and advised our agent, LaDonna [redacted], that she wanted a "bill mailed to my address." Ms. [redacted] proceeded to clarify by asking Ms. [redacted], "You would like to receive a statement?" Ms. [redacted] responded affirmatively and provided the necessary authorization to receive monthly statements.
Unfortunately, this did not appear to be the result Ms. [redacted] intended. On August 19, 2015 Ms. [redacted] contacted our offices to discuss the automatic payment arrangement she believed she had cancelled on June 30, 2015. Our agent reviewed the notes from that date and advised Ms. [redacted] that our records showed no request to stop her automatic payment arrangement. Moreover, our agent advised Ms. [redacted] that in order do so she was required, under the terms of her authorization, to send in written notice of her cancellation. Ms. [redacted] then requested to listen to the recording of that call. Our agent informed Ms. [redacted] in turn that this request would require supervisor review and authorization and that someone would get back with her within 48 hours regarding her request. This did not appear to have occurred. We eventually cancelled Ms. [redacted]'s automatic payment arrangement when Ms. [redacted] sent her cancellation by fax a few days later.
On August 26, 2015, Ms. [redacted] followed up with our offices regarding whether we had reviewed the call recording from June 30th and to request reimbursement for the bank fees she incurred as a result of our drafts on August 17th. Our Customer Service Supervisor Monica [redacted] advised Ms. [redacted] that she would contact Ms. [redacted] after the June 30, 2015 call had been reviewed (which was reviewed that same date). This too did not appear to have been done even by the time Ms. [redacted] contacted our offices again on September 3, 2015 where Ms. [redacted] was again advised that our Customer Service Supervisor would follow up with her.
On September 10, 2015, Ms. [redacted] contacted our offices requesting to speak with Ms. [redacted]. Our agent advised Ms. [redacted] that Ms. [redacted] was not available and was transferred to another supervisor, Chandler [redacted]. Ms. [redacted] spoke with Ms. [redacted] and advised her that the June 30th call had been reviewed and advised that there was no request that had been made to cancel her automatic payments. Ms. [redacted] then requested to listen to the call to which Ms. [redacted] informed Ms. [redacted] that this would need to first get authorized. Our records reflect that at 12:09 p.m. (CST) on that same date our offices attempted to speak with Ms. [redacted] to play the call for Ms. [redacted] to no avail.
We value Ms. [redacted] as a customer and we regret any confusion that stemmed from the conversation that took place on June 30th. We also sincerely apologize for our failure to promptly follow up with her regarding her request. In light of this, Preferred Credit, Inc. will be crediting Ms. [redacted]'s account in the amount of $70, the amount which Ms. [redacted] claims she incurred from her bank related to our August 17th draft. Again, we apologize for these oversights and regret the circumstances which may have led to the present situation.
Finally, we wish to inform Ms. [redacted] and the Revdex.com that we will be reviewing our procedures to see where we may improve so as to avoid these issues 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 Business Response /* (1000, 5, 2015/09/24) */
September 24, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of September 15, 2015, regarding Mr. [redacted]'s cancellation...
concerns. I have taken the opportunity to review the matter and ask that you include this response in your permanent record.
Preferred Credit is please to inform the Revdex.com and Mr. [redacted] that we have reviewed Mr. [redacted]'s concerns with Total Systems, LLC and Preferred Credit will be cancelling Mr. [redacted]'s contract. As result, we have closed Mr. [redacted]'s account, we make no further demand for payment and Preferred Credit has updated all our credit reporting accordingly. For our end, we consider the matter closed.
Please note that Preferred Credit is a regulated lender whose business is limited to the purchase of retail installment contracts from independent sellers of various household products. Given the seller/finance company relationship, Preferred Credit relies on the independent seller in all matters relating to cancellation.
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 /* (2000, 7, 2015/09/24) */
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. We have decided we will choose the payoff within the next three months. Thank nk you for your assistance in this matter. [redacted]
Initial Business Response /* (1000, 5, 2015/10/07) */
October 7, 2015
Re: [redacted]
Case #: # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account #[redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of October 1, 2015 regarding Ms. [redacted]'s concerns. Preferred Credit, Inc....
(PCI) is pleased to inform Ms. [redacted] and the Revdex.com that on October 2, 2015 our offices issued check in the amount of $300.00 to Ms. [redacted] in an effort to resolve the matter. Nonetheless, 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. [redacted] and her spouse, [redacted]'s purchase of a Kirby home cleaning system from Gonzales Enterprise of Bakersfield, California. This is evidenced by the retail installment contract Mr. and Mrs. [redacted] executed on November 28, 2014. According to that contract, the [redacted]'s agreed to finance $2,000.00 over twenty-four equal installments of $103.73 commencing January 19, 2015.
PCI first became aware that the [redacted]'s had a concern regarding unauthorized transactions on their bank account when Mr. [redacted] called our offices on April 8, 2015 and advised that he was notified by his bank that our offices had made an ACH withdrawal of $100.00 from his account on that same date. One month later, on May 8, 2015, Mr. [redacted] called our offices again and advised that another $100.00 withdrawal had been made by PCI. On both occasions our customer representative reviewed the [redacted]'s account and found no ACH payment had occurred on their account. Our office advised Mr. [redacted] of this and requested that he confirm with his bank that such transactions were taken by our offices.
This issue was not raised again until approximately nine weeks later on September 23, 2015 when Mrs. [redacted] called our offices. Mrs. [redacted] advised that their bank account statement revealed that three $100.00 ACH payments (one each in February, March and April 2015) had been taken from their bank account by PCI. Our representative requested that Mrs. [redacted] forward to us a copy of her bank statement that represented the ACH withdrawals by our offices.
The following day on September 24, 2015, our offices received a copy of the [redacted]'s bank statement which indicated four ACH withdrawals, each for the amount of $100.00, were made on February 9, 2015, March 9, 2015, April 9, 2015 and May 11, 2015 taken by our offices. These withdrawals were not reflective in PCI's account for Mr. and Mrs. [redacted]. The bank statement also indicated that on May 27, 2015, the [redacted]'s disputed one of the $100.00 ACH withdrawals and the funds were reversed from our bank account and credited back to the [redacted]'s bank account. Therefore leaving $300.00 at issue.
The information provided by the [redacted]'s was immediately forwarded to our account department for review. Unfortunately, it appears that our customer service representative that assisted the [redacted]'s in scheduling a one-time ACH payment in February 2015, erroneously set up automatic ACH payments for another PCI account to be drawn upon the [redacted]'s bank account used in the February 2015 transaction. We sincerely apologize for this error and for any inconvenience this may have caused the [redacted]'s. On October 2, 2015 our offices mailed a check for $300.00, representing the three $100.00 transactions that were honored by the [redacted]'s bank.
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 /* (2000, 6, 2015/10/07) */
November 9, 2016 Re: [redacted] Case ID: [redacted] Our account #: Dear Mr. [redacted]: Thank you for your...
letter of November 8, 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) is financing the purchase of a $2708.64 Kirby home cleaning system from HNM Distributions, Inc. of Tucson, Arizona for [redacted]. This is evidenced by the retail installment contract and associated credit application he completed and executed on January 8, 2016 to which he agreed to make minimum monthly payments of $75.24 by the 20th of each month commencing February 20, 2016. A review of Mr. [redacted]’s payment history shows that Mr. [redacted] has remained current in his contractual obligation to repay his debt and has chosen to make payments over the minimum amount of $75.24 in an effort to pay off his account early. In fact, he has made nine payments totaling $1500.00. Mr. [redacted]’s complaint appears to have stemmed from a misunderstanding that occurred on November 7, 2016. On November 7, 2016, we now understand that Mr. [redacted]’s spouse contacted our offices seeking to pay off her account in 12 months. Our agent misunderstood this request as our agent thought Mrs. [redacted] was looking to convert a 36-month contract to a 12 month contract. This misunderstanding led our agent to inform Ms. [redacted] that the terms could not be changed and that only a one-time payoff amount could be provided. This was unfortunate. Once this matter was brought to our attention, PCI subsequently reached out to Mrs. [redacted] in an effort to clear up the confusion. Fortunately, on November 8, 2016, Mrs. [redacted] spoke with supervisor Cassie [redacted] regarding this confusion. During this call, Mrs. [redacted] was advised that if payments of $283.22 were made for the next three months, the account would be considered paid in full. This would essentially turn Mr. [redacted]’s 36 month contract into a 12 month contract as the [redacted]’s were requesting. Mrs. [redacted] then requested a onetime payoff quote for her November 20, 2016 payment. Mrs. [redacted] was advised that this amount would be $794.85. Mrs. [redacted] indicated she intends to pay off the entirety of the remaining balance at that time. We sincerely regret the circumstances which led to this complaint. Nevertheless, with the aforementioned actions, we 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
See attached.
January 30, 2017 Re: [redacted] N [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for...
your letter of January 23, 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing Mrs. [redacted]’s purchase of a Kirby home cleaning system from Perseverance, Inc. of Layton, Utah. On June 10, 2016, Mrs. [redacted] completed a credit application and retail installment contract. According to her contract, Mrs. [redacted] agreed to make equal monthly installments of $99.16 due on the 1st of each month through automatic payments through her Mountain America Credit Union checking account ending in [redacted]. Please note that the salesperson advised our offices on that same date that Mrs. [redacted] was offered a 12 month same as cash promotional option. 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 a Senior Account Representative, by phone, with Mrs. [redacted], on June 10, 2016 at 7:35 pm (CST). At no time did Mrs. [redacted] express concern, dissatisfaction or doubt about her purchase. During the course of the conversation with Mrs. [redacted], she was advised that her agreement included a 12-month same as cash option. Mrs. [redacted] was asked if she understood what that meant, to which Mrs. [redacted] responded, “Yeah, I guess if I pay it off in the first 12 months the finance charge is waived, or something like that?” To which the PCI Senior Account Representative responded “Right.” Mrs. [redacted] then asked “And would that 12 months start from the first of August?” To which the PCI Senior Account Representative responded “No. It would start from the date of the signing of the contract.” If Mrs. [redacted] had any further questions regarding the promotional option, we would have clarified that matter with Mrs. [redacted] and the original seller at that time. Our records indicate this to not be the case. There was no further discussion regarding the promotional option. 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 agreement is similarly constructed to help ensure she understands the financing she is requesting in accordance with applicable state and federal law. The terms related to “Same as Cash Plan” were disclosed in paragraph 20 in Mrs. [redacted]’s contract. As part of our quality assurance program, we attempted to follow up with Mrs. [redacted] regarding her financing on multiple occasions beginning on June 20, 2016 and through December 15, 2016. Unfortunately, our offices were unsuccessful in reaching Mrs. [redacted] via telephone during this time. However, PCI was able to contact the co-buyer Ms. Aretta Butler who indicated that, to the best of her knowledge, everything was working fine with the products and that Mrs. [redacted] had received all of the products promised by the dealer. A review of Ms. [redacted]’s account file indicates that Mrs. [redacted]’s automatic payment on December 1, 2016, was returned due to non-sufficient funds. As a result, Mrs. [redacted]’s account was removed from the automatic payment program. Subsequently, her December 19, 2016 and January 3, 2016 attempts at payment were also returned due to non-sufficient funds. Her monthly statement provided Mrs. [redacted] detailed information regarding her account including the accrual of interest. Our offices also continued our efforts in attempting to reach Mrs. [redacted] by calling her on the telephone numbers she provided with her application. On December 15, 2016 at 8:12 pm (CST) Mrs. [redacted] called into PCI and made a promise to make a payment of $124.00, which was broken when her December 19, 2016 payment attempt was returned due to non-sufficient funds. Again, on December 23, 2016 at 4:49 pm (CST) Mrs. [redacted] called in to inform PCI that she had made her payment online. A Senior Account Representative informed Mrs. [redacted] that multiple attempts at payment had been returned due to non-sufficient funds and Mrs. [redacted] hung up. The first communication our offices had with Mrs. [redacted] regarding her “same as cash” option occurred on January 22, 2017 at 6:46 pm (CST). During this call a PCI Senior Account Supervisor advised Mrs. [redacted] that, per the “same as cash” clause on the back of her contract, because her December payment was late, she would no longer be eligible for the “same as cash” promotion. At this point, Mrs. [redacted] refused to make any further payments. Mrs. [redacted] reached out to PCI via e-mail on January 23, 2017 stating that it is wrong to take away her “same as cash” option when the year is not up and she is enduring hardship while her husband is deployed. She also claimed that the details of the “same as cash” option were never disclosed prior to signing the contract. This is in direct conflict with the June 10, 2016 verification call where Mrs. [redacted] indicated she understood what the “same as cash” option entailed. Nevertheless, PCI prides itself as being a relationship-driven company. PCI will reinstate Mrs. [redacted]’s same as cash option upon completion of the following conditions. First, Mrs. [redacted] must re-enroll in automatic payments. Additionally, she will need to bring her account current, including all currently applied fees, as soon as possible. As of the date of this letter, the amount needed to bring Mrs. [redacted]’s account current is $437.48. Once these conditions are satisfied, should Mrs. [redacted] continue to make at least her minimum monthly installment and pay off her amount financed before the expiration of her option, all interest will be waived. However, should Mrs. [redacted] fail to satisfy the previously stated conditions, or make her regular monthly installment in the future, her same as cash option will be voided. We believe this to be more than fair under the circumstances. As stated previously, Mrs. [redacted]’s account is currently not set up for recurring automatic payments. If Mrs. [redacted] would like to re-set her automatic payments, we would ask her to call our Customer Service department during normal operating hours, Monday through Friday from 7 a.m. to 11 p.m. (CST), on Saturdays from 8 a.m. to 5 p.m., and Sundays from 12 p.m. to 9 p.m. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/12/23) */
December 23, 2015
Re: [redacted]
Case No.: [redacted] (Ref#19-18348-[redacted]-4-302)
Our Account No.: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of December 17, 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 Preferred Credit, Inc. (PCI) is a sales finance company incorporated in the State of Minnesota and licensed in the states that we do business. Our business is limited to the purchase of sales finance agreements 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 relationship. This 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 agreement terms and to ensure we have a legally valid and binding agreement.
Our records indicate that Ms. [redacted] sought to purchase a Rain Soft water treatment system on November 21, 2015 from [redacted] of Pompano Beach, Florida. Opting not to purchase the merchandise outright by cash, check or credit card, Ms. [redacted] elected to have her dealer seek out financing by completing and executing a purchase order and associated retail charge agreement that same day.
Our records also indicate that on or around August 12, 2015, PCI account representatives spoke with both Ms. [redacted], and her husband [redacted], regarding her request for financing and to verify that the information Ms. [redacted] provided with her agreement was accurate, that they understood the terms of the agreement she signed, that the monthly payments required under the agreement fit into their monthly budget, that Ms. [redacted] was not a victim of identity theft, that Ms. [redacted] was happy with the purchase, and that the original seller fulfilled all of the promises made during the presentation. Satisfied with their responses, we subsequently informed Ms. [redacted] she had been approved for financing.
In turn, as a relationship-driven company, special effort is made in order to help our customers manage their accounts. We do this as it is in both the financial interest of the customer as well as PCI that payment be made on a timely basis. We therefore employ special calling and letter campaigns to help alert customers as to their account status so that they can avoid unnecessary fees and adverse credit reporting; all within the standards provided under applicable state and federal law.
Finally, please note that Ms. [redacted] had until midnight of August 10, 2015, to cancel her purchase. The notice of cancellation provided that Ms. [redacted] could cancel her purchase by sending or delivering the cancellation notice provided with her paperwork or by sending any other written notice to the original seller, [redacted] 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, Ms. [redacted]'s own correspondence with the Revdex.com seems to indicate that only phone calls were made. Because Ms. [redacted] failed to cancel the agreement accordingly, the agreement remains in full force and effect, as intended, upon Ms. [redacted]'s signature on the agreement and the passing of the appropriate rescission period.
Nevertheless, PCI is pleased to inform Mrs. [redacted] and your office that PCI, as a relationship-driven company, has decided to close Mrs. [redacted]'s account with our offices and make no further demand for payment. Therefore, we will update our reporting with the credit reporting agencies accordingly and consider the matter closed. However, we understand that [redacted], will be contacting Mrs. [redacted] to coordinate the return of all merchandise.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Final Business Response /* (4000, 12, 2016/01/25) */
Mr. [redacted]:
We wanted to inform you as to an update on the below complaint. As you will note, Mrs. [redacted] had certain concerns regarding the sale, installation and service she received from [redacted] regarding the water treatment system she purchased from them. She therefore sought to have her account closed. We, in turn, fulfilled Mrs. [redacted]'s request and closed her account. The Revdex.com subsequently closed the complaint on January 13, 2016 as no further word had been received from Mrs. [redacted] regarding her concerns.
Since our initial response, it appears Mrs. [redacted] has had a change of heart. Now, instead of cancelling her account as originally intended, Mrs. [redacted] and her husband would like to keep the merchandise, albeit at half the price. The distributor subsequently contacted our offices to see if we could finance their purchase under the new terms. We stated we could provided that we could verify with the Mr. and Mrs. [redacted] that this is indeed their intent.
We have since received confirmation of their intent to purchase on January 19, 2016 when we spoke with Mr. [redacted] by phone. We therefore provided the financing they requested under the new terms of the deal they struck with the distributor. We now wish to inform the Revdex.com of this development in light of our previous response.
Should you have any questions or concerns, please do not hesitate to contact us.
Sincerely,
John [redacted]
Compliance Manager
Preferred Credit, Inc.
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 help and the business cooperation to resolve tgis issue in a professional and timely manner. I will resume paying monthly as agreed due to this outcome. Thanks I appreciate it. Just ensure the business mails me a documented copy of the waiver as proof.
I am rejecting this response because:According to the information provided by PCI, the information reported is incorrect.PCI has not reported the account as paid in full instead PCI is reporting the account as still being late according to several different credit trackers that I have. If the account was reported as anything else then it would be noted on the account. It is understood that the credit bureaus report usually within 30 days and pass this information to credit trackers etc. there is no reason that a late payment would be reported before the acct paid in full would. PCI knows they are in error of reporting accurately and they are intent on trying to prove different. While I am happy with the product,PCI has been anything less than the stellar company they claim to be.
April 3, 2017 Re: [redacted] A [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for your...
letter of April 3, 2017 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. Our records indicate that Preferred Credit, Inc. (PCI) is financing Ms. [redacted]’ purchase of a Kirby home cleaning system from Denver Distributing, Inc. of Engelwood, Colorado. On March 12, 2017 Ms. [redacted] completed a retail installment contract and credit application. According to his contract, Ms. [redacted] agreed to make forty-eight (48) monthly payments of $63.93 due on the 2nd of each month beginning on May 2, 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 a Senior Account Representative, by phone, with Ms. [redacted], on March 12, 2017 at 6:05 pm (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about his purchase. Satisfied with her responses, we subsequently informed Ms. [redacted] she had been approved for financing. In addition, please note that Ms. [redacted] had until midnight of March 15, 2017, to cancel her contract. The notice of cancellation provided that Ms. [redacted] could cancel her purchase by sending or delivering the cancellation notice provided with her paperwork or by sending any other written notice to the original seller, Denver Distributing, 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, Ms. [redacted] own correspondence with PCI seems to indicate that the first time she notified us of her intention to cancel occurred on March 28, 2017, well outside of her cancellation period. Because Ms. [redacted] failed to cancel the contract accordingly, the agreement remains in full force and effect, as intended, upon Ms. [redacted]’ signature on the contract and the passing of the appropriate rescission period. Nevertheless, as a relationship driven company, PCI reached out to Denver Distributing, Inc. to determine an appropriate resolution, and received confirmation that because Ms. [redacted] did not provide written notice of her intention to cancel prior to midnight of March 15, 2017, the contract remains in full effect. Therefore, Ms. [redacted] will be responsible for complete repayment of her contractual obligation. As of the date of this letter, Ms. [redacted] has a balance of $3068.64 and, as a secured creditor, PCI expects full and complete repayment of the debt. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
I am rejecting this response because: As stated I provided the people selling the Kirby Vacuum cleaner with all of my information. At no point in time did I speak with anyone to authorize a contract. I will listen to the call however the call is not going to be me because I did not accept any contract or payment installments with anyone. I was told that the application for credit was denied.
Initial Business Response /* (1000, 5, 2016/02/02) */
February 2, 2016
Re: [redacted]
Case# # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of January 25, 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.
First and foremost, Preferred Credit, Inc. ("PCI") is a great supporter of our military and its service members. We understand that there is a great deal of sacrifice borne by our service men and women and we are thankful for the sacrifice.
Preferred Credit, Inc. ("PCI") is a regulated lender whose business is limited to the purchase of sales finance contracts from third-party independent sellers of various household products. PCI'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 PCI.
Our records indicate that we financed Mr. [redacted]'s purchase of a Kirby home cleaning system from KLS & Associates of Louisville, Kentucky. This is evidenced by the credit application and retail installment contract completed and executed by Mr. [redacted] on November 7, 2007 and the account verification that was completed with Mr. [redacted] by phone on November 7, 2007 at 7:23 pm (CST). According to the contract he signed, Mr. [redacted] agreed to finance $1,500.00 over thirty-six equal installments of $58.52 commencing February 7, 2008.
An examination of Mr. [redacted]'s account file indicates that all reporting to the credit bureaus were rightfully submitted. A review of Mr. [redacted]'s payment history reveals that Mr. [redacted]'s bank did not honor his August 2009 installment for non-sufficient funds. Additionally, no installment was received for the months of September 2009 through January 2010. While Mr. [redacted] resumed making installments in late January 2010, the missed August 2009 installment was not addressed and therefore Mr. [redacted]'s account remained in arrears. Fortunately, however Mr. [redacted] was able to become current in January 2011 before paying his account in full in May 2011.
PCI's policy, in regard to credit report disputes, is reflective of proper legal and industry standards. PCI is entitled by law to report to credit bureaus the positive or negative standing of any account established by virtue of the extension of credit. In turn, any credit reporting is indicative of the account's performance and any misreporting of the credit bureau will be corrected upon valid evidence attesting to the contrary. To make any changes to our credit reporting without valid evidence to the contrary would violate the Fair Credit Reporting Act. As no such evidence has been provided by Mr. [redacted] nor does such exist in our records, Preferred Credit has reported the account's performance and standing appropriately.
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, 2016/02/03) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I do not have the name of who whe spoke with, but we were tod that if we pay the missed months the accoun would be current and there would be no late paymenst accessed to my account. Plus the item should hve been close to being paid off by the time you all were stating it was late. $1400 of the $1500 that was financiewd was paid during that time. Are you saying I was in the arrears for 19 months over $100 when I olny had 12 payments left on the loan? This does not add up to me. Please updated or delete my acount. In advance thank you.
Final Business Response /* (4000, 9, 2016/02/12) */
February 12, 2016
Re: [redacted]
Case# # [redacted] (Ref#19-18348-[redacted]-4-302)
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of February 4, 2016. In reviewing our response anew we now understand where the confusion lies. We hope therefore that we can clarify the matter for Mr. [redacted].
In our previous response, we stated that Mr. [redacted]'s August 2009 installment was dishonored by his bank thereby placing his account in arrears. We also stated that though Mr. [redacted] resumed making payments in late January 2010 he failed to make up this payment and therefore his account remained in arrears.
However, we also stated that Mr. [redacted] was able to become current in January 2011 thereby implying that Mr. [redacted] had made sufficient enough payments to make up for any past due amount before ultimately paying off his account in May of 2011. This is incorrect and we apologize for this oversight.
In reviewing Mr. [redacted]'s payment history anew, Mr. [redacted]'s payment history indicates that he was not actually able to bring his account current until May of 2011 when he ultimately paid off his account in full. This is due not only to the fact that Mr. [redacted] failed address his August 2009 installment but those scheduled installments from September 2009 through January 2010 as previously indicated. In fact, when Mr. [redacted] began making payments after his January installment was due, he failed to make any payment greater than his regular installment amount for the duration of his account (excluding his final payoff amount of course). Moreover, because he was only making, at most, his regular installment amount, his account ultimately reached maturity in February of 2011. Therefore, it initially appeared that Mr. [redacted] had brought his account current as all late fees ceased when the account reached maturity and Mr. [redacted] continued to make payment until his ultimate payoff in May of 2014.
Finally, in reviewing our files, we have been unable to find any record that would seem to indicate that by paying off his account we would ensure no late payments would be recorded on Mr. [redacted]'s account. In fact, to do so, would be violation of the Fair Credit Reporting Act. However, what our records do show is that our agent agreed to waive a number of late fees in exchange for a payoff Mr. [redacted] authorized in May. As indicated previously this act not only paid of his account but brought his account current. Perhaps that is the source for that misunderstanding.
Again, we sincerely apologize for our oversight and for the confusion it has caused.
Sincerely,
John [redacted]
Compliance Manager
Final Consumer Response /* (3000, 11, 2016/02/16) */
(The consumer indicated he/she DID NOT accept the response from the business.)
Because now you all are stating that now I was confused. No, You stated one thing before now you all are stating something else. Stating that you were incorrect and apologizing for an oversight? I think that Preferred Credit is being disingenuous. No, it is not a misunderstanding on my part. Although this file will come off my credit report in a matter of months, this still does not make the process and procedures that Preferred Credit are using correct. I will escalate this situation to the Federal Trade Commission and to the Consumer Financial Protection Bureau, referencing what was stated on the previous response and now what is being called a misunderstanding and oversight. The Fair Credit Reporting Act states Fair Credit Reporting Act does not demand that all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company does have legal discretion and permission to remove or update any account it chooses from the credit report. I'm hoping that I will not have to escalate this matter and Preferred Credit will do that in my case for this account.
I am rejecting this response because:
Good Evening Mr. [redacted], Before I am resigned to accept this offer I wanted to share with you additional evidence that further highlights the lack of clear and concise lending practices of PCI. I have attached for you two documents that in no way show, explain, or confirm we were notified or agreed to pay interest with this balance. As will find the checkbox for interest was not checked and the official assignment document did not include this information. Additionally I still am unclear as to why I am not being provided the recorded phone call that would allow me to hear if I agreed verbally to any interest rate. Please let me know if we need to further discuss, or if there are any additional options available to me. I have included my cell phone number below. Thank you in advance for your time and assistance. -[redacted]###-###-####
February 13, 2017 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you for your correspondence of February 10, 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. As a regulated sales finance company, PCI’s 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 ensure that our customer’s understand their obligations and our financing relationship. This includes taking the opportunity to review their request for financing with the individual personally as well as provide the consumer with complete and accurate disclosures, in the form of an agreement, pursuant to applicable law. Despite these efforts, there appears to be some lingering confusion as to nature of the agreement Ms. [redacted] reviewed and agreed. Ms. [redacted] presents two forms for the Revdex.com’s review: a welcome/assignment notice and the purchase order. Please note that neither were developed to address the concerns Ms. [redacted] has regarding her financing. The welcome/assignment notice simply informs Ms. [redacted] that PCI has purchased her contract from the distributor and the purchase order merely identifies what purchase is being applied to her agreement. The information relevant to Ms. [redacted]’s concerns is contained under the heading “Additional Terms and Disclosures” portion of her agreement. Attached you will find a copy of the “Additional Terms and Disclosures” that accompanied Ms. [redacted]’s executed retail charge agreement. Additionally, PCI generally records its calls for quality assurance purposes. They are not generally released for any other purpose. Nevertheless, if Ms. [redacted] would be willing to call into our customer service line at ###-###-####, and ask for either Bridget [redacted] or Megan [redacted] they could play the October 19, 2016 verification call for her over the phone. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. 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.
Sincerely,
[redacted]