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. My mom's account was credited in the amount of $154.66 today. Thank you so much for assisting her with this...
situation and doing so quickly. Happy Holidays to you and yours.Sincerely,[redacted]'s daughter
Initial Business Response /* (1000, 5, 2015/05/11) */
May 11, 2015
Re: [redacted]
Case #: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of May 7, 2015, regarding Mr. [redacted]' concerns. I have taken the opportunity to review this matter and ask that you include this...
statement of your position in your department's permanent record.
Preferred Credit, Inc. (PCI) is a third-party regulated lender that finances the sale of various consumer goods by independent sellers. As a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mr. [redacted]' Rainsoft water softener.
To perfect our security interest in the Rainsoft water softener, we must file what is generally known as a fixture filing (also known as a financing statement). The nature of this security interest and how we go about securing our interest is explained in Section twelve (12), "Security Agreement" of Mr. [redacted]' retail charge agreement. This provision, in relevant part, states the following:
"You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $200 or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code). To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..."
This filing will be removed upon the satisfaction of Mr. [redacted]' account.
In review of Mr. [redacted]' file it shows that our office did inform Mr. [redacted] on May 7, 2015, that PCI may be able to work with his title and mortgage company in filing a subordination agreement (a legal document making our filing subordinate to the mortgage) for the fixture filing. It is common practice for mortgage companies to add a debt obligation, such as this, to the mortgage thereby satisfying the note which will in turn release the fixture filing. Perhaps this is an option Mr. [redacted]' may explore with his banker as an alternative option to the one mentioned above.
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, 2015/05/11) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I would like to keep this complaint open until I receive a copy of the signed contract with PCI which I just requested via phone. I was told that it would take 7-10 business days to receive the requested document.
The paragraph that Mr. [redacted] referenced does not specify that a lien will be placed against my home nor was that explained to me (as best that I can remember). I am not aware of the Applicable Law (including the Uniform Commercial Code) and doubt very seriously that the average consumer would read this reference and understand a lien would be placed against their home.
February 6, 2017 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you...
for your correspondence of February 2, 2017, regarding Ms. [redacted]’s concerns. I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record. Please note that Preferred Credit, Inc. (“PCI”) is a regulated lender whose business is limited to the purchase of sales finance contracts and receivables from third-party independent sellers of various household 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 such sales finance contract and receivable, PCI verifies with the consumer that the information the consumer provided in applying for credit was accurate, that he/she understood the terms of the consumer sales finance contract he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase, that he/she received a copy of the financing paperwork and that the original seller fulfilled all of the promises made during the presentation. This account verification process was completed with Ms. [redacted] on October 19, 2016. At that time, Ms. [redacted] was explicitly asked if she understood the terms of her agreement, including the interest rate disclosure, and at no time did she express any concern, dissatisfaction or doubt about any of the aforementioned. Ms. [redacted]’s contract is similarly constructed to help ensure she understood the financing she was requesting in accordance with applicable state and federal law. Under the heading “Additional Terms and Disclosures,” Ms. [redacted] was provided with a summary of the basic terms of the agreement she executed – what interest rate would apply, how she could avoid paying interest, what the minimum finance charge would be, what fees would apply, etc. Additional terms, as well as lengthier descriptions of the aforementioned terms, were disclosed elsewhere in the agreement. Our offices were first made aware that Ms. [redacted] had concerns regarding her account when she contacted our offices on December 13, 2016. At that time, Ms. [redacted] claimed that she was never informed of the finance charges and the interest rate. On December 26, 2016 PCI received an e-mail from Ms. [redacted] indicating that she wanted resolution to this issue and wanted all future dealings to be with PCI and not Carolina Cooking Solution. This e-mail caused PCI to reach out to Carolina Cooking Solution to confirm that the terms of the agreement were discussed with Ms. [redacted] at the time of the sale. Carolina Cooking Solution assured us that the entirety of the agreement, including interest, was discussed with Ms. [redacted] at the time of sale. The distributor also indicated that Ms. [redacted] was fully aware she was financing her purchase, that there was no same as cash offered, and that there was no 0% interest offered. Please note that through the use of policy, procedure, internal controls, training and auditing, our business operations have been structured to ensure that our account servicing meets all business and legal standards. Moreover, as a regulated lender, our financing operations are routinely examined. These examinations verify PCI’s compliance with applicable state and federal regulations including how interest and payments are applied on retail charge agreements. Please rest assured that all accounting on Ms. [redacted]’s account is indeed accurate. Nevertheless, as a relationship driven company, PCI and Carolina Cooking Solutions have agreed to extend Ms. [redacted] a 12 month same as cash option due to the perceived miscommunication. This means that if Ms. [redacted] is able to pay off her remaining principal balance of $4401.61 by October 17, 2017, all finance charges will be waived. We believe this to be more than fair under the circumstances. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/07/07) */
July 7, 2015
Re: [redacted]
Case # [redacted]
Our account # [redacted] (Ref#19-18348-[redacted]-4-302)
Dear Mr. [redacted]:
Thank you for your letter of June 29, 2015 regarding Mr. [redacted]'s concerns. I have taken the opportunity...
to review this matter and ask that you include this statement of our position in your department's permanent record.
Our records indicate that Mr. [redacted] entered into a retail charge agreement on August 14, 2010 for the financing of a $4,990 Hague water treatment system. According to that agreement, Mr. [redacted] agreed to make monthly payments of $116.27 to be paid on or before the 15th of each month commencing September 15, 2010.
A review of Mr. [redacted]'s account file shows that he was initially fully engaged in the repayment of his obligation. In fact, Mr. [redacted] made each monthly payment on time through March of 2013. Unfortunately, after, Mr. [redacted]'s payments mysteriously stopped and when no additional payments were forthcoming his account was charged off for non-payment in November 2013. Fortunately, however, Mr. [redacted] was able to pay off the total outstanding balance on his obligation in May of 2014.
We have since ensured that our reporting with the credit reporting agencies accurately reflect these facts. However, please note that the credit reporting agencies may take up to 30 days or longer to update their reports and that this is beyond our control.
Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/07/08) */
(The consumer indicated he/she ACCEPTED the response from the business.)
As long as they report the information to the credit reporting agencies that this has been paid off since May 2014, then we are fine. Right now, it states it was paid off in Feb 2015.
Initial Business Response /* (1000, 6, 2015/08/26) */
August 26, 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 August 21, 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.
Preferred Credit is pleased to inform you that we have reached out to [redacted] regarding Ms. [redacted]'s concerns. They have informed Preferred Credit that Ms. [redacted]'s contract has indeed been cancelled. As a result, we make no further demand for payment, we have closed her account and Preferred Credit has updated all necessary 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, 9, 2015/08/27) */
(The consumer indicated he/she ACCEPTED the response from the business.)
April 5, 2016Re: [redacted]-[redacted] Case # [redacted] (Ref#19-18348-[redacted]-4-302) Our account # [redacted]Dear Mr. [redacted]: Thank you for your correspondence of April 4, 2016. We are sorry to hear that Ms. [redacted]-[redacted] did not accept out initial response. Please include this statement in your department’s permanent record. As stated in our initial response, if Ms. [redacted]-[redacted] would like to listen to the May 27, 2015, telephone conversation we would ask that she contact our Customer Service Manager, Bridget [redacted] to make the arrangements to listen to the call. Ms. [redacted] is available Monday through Friday from 8am to 5pm (CST) and can be reached at ###-###-####. Additionally, on March 28, 2016, our offices forwarded to Ms. [redacted]-[redacted] a copy of the contract she executed. Should there be any other questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted]Compliance Manager
March 6, 2017 Re: [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for your...
letter of March 6, 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 [redacted]’ purchase of a Rainbow home cleaning system from Galaxy 2000 of Austin, Texas. On October 1, 2015, Ms. [redacted] completed a retail installment contract and associated credit application. According to her contract, Ms. [redacted] agreed to make twenty-four (24) equal monthly payments of $138.87 due on the 15th of each month, beginning on January 15, 2016. 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 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 PCI Senior Account Representative, by phone, with Ms. [redacted], on October 3, 2015 at 8:59 am (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about her purchase. A review of Ms. [redacted]’ account shows that she paid her account off in full on February 14, 2017 with a payment of $1,594.33. Despite the fact that her account is currently considered paid in full, with a zero balance, it can take up to 30 days for the credit reporting agencies to update their reporting. On March 6, 2017 at 10:33 am (CST) Ms. [redacted] called into PCI and immediately asked to be transferred to a supervisor. Subsequently, she was transferred to Customer Service Supervisor Casey Cool. Mr. Cool advised Ms. [redacted] that credit reporting is delayed and it could take up to 30 days to accurately reflect her account as paid in full. Additionally, he advised her that if it is not properly updated she would need to file a dispute with the credit reporting bureaus. Ms. [redacted] went on to state that her dispute was with PCI and not the reporting agencies, and she refused to contact them. Mr. Cool then offered to verify that we are accurately reporting with our accounting department and call Ms. [redacted] back. Ms. [redacted] was under the impression that the March 6, 2017 report was current. Mr. Cool again advised her that this is not the case, and that the reporting can be delayed up to 30 days. On March 7, 2017 PCI’s accounting department confirmed that Ms. [redacted]’ account is being reported as paid in full. Upon receiving this information, Mr. Cool reached out to Ms. [redacted] to inform her that as of February 28, 2017 PCI has been reporting her account as paid in full. Based upon the March 7, 2017 phone call between Mr. Cool and Ms. [redacted], PCI feels that this issue has been resolved, and considers the matter closed. Should you have any questions or concerns, please do not hesitate to contact me at (320) 202-7000. Sincerely, John Olmscheid Compliance Manager Tell us why here...
Initial Business Response /* (1000, 5, 2015/11/12) */
November 12, 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 November 9, 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.
Our records indicate that Preferred Credit, Inc. (PCI) financed Ms. [redacted]'s purchase of a Kirby home cleaning system from Quality Cleaning Systems, Inc. of Murrieta, California. According to the retail installment contract she executed on January 8, 2014, she agreed to finance $2,500.00 and repay her obligation by making twenty-four equal monthly installments of $130.92 commencing February 22, 2014.
Ms. [redacted]'s interest accrual concerns appear to stem from a misunderstanding regarding the nature of her retail installment contract. It seems Ms. [redacted] believes her finance charges (interest) were being calculated based on a simple interest basis where interest is accrued on a daily basis based on the outstanding principal balance. This is incorrect. Instead, Ms. [redacted] entered into a precomputed retail installment contract where the finance company is only entitled to those finance charges that we have actually earned under the contract. In California, this amount is figured according to the amortization schedule developed based on the Rule of 78s as of the next installment due date if prepayment is not received on the due date. Meaning, the amount of Ms. [redacted]'s financing (interest accrual) is dependent on both the interest accrual method (i.e. the Rule of 78's) and the timing of her payments. This fact was disclosed to Ms. [redacted] according to applicable law and can be illustrated by the following itemization:
Amount Financed: $2,500.00
Earned Finance Charge: $ 447.32 (January, 2014 - December, 2014)
Fees Earned: $ 45.00
Principal, Interest and Fees Earned = $2,992.32
Less Payments - $2,992.32
$ 0.00
Finally, please note that Preferred Credit is a regulated sales finance company and licensed to conduct business in the states in which conduct business. As such, we are examined on a regular basis regarding our financing operations. These examinations verify Preferred Credit's compliance with applicable state and federal regulations including how interest accrues and payments are applied on retail installment contracts. Please rest assured that all accounting on Ms. [redacted]'s account was accurate.
We thank Ms. [redacted] for her business and we regret any confusion there may have been regarding the financing of her purchase. We hope we were able to bring clarity to this matter.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/11/20) */
(The consumer indicated he/she ACCEPTED the response from the business.)
(The consumer indicated he/she ACCEPTED the response from the business.)
Thank you I will call them at the number provided. I had no other way of contacting them. Thank you Revdex.com for all your help.
Initial Business Response /* (1000, 5, 2015/05/26) */
May 26, 2015
Re: [redacted]
Case # [redacted]
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your letter of May 15, 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.
Our records indicate that Preferred Credit, Inc. (PCI) is financing Ms. [redacted]'s purchase of an Easy Rest bed from Easy Rest Adjustable Sleep System of Baltimore, Maryland. On May 29, 2014 Ms. [redacted] completed an application for credit and entered into a precomputed retail installment sales finance contract. According to her precomputed retail installment contract, Ms. [redacted] agreed to forty-eight payments of $164.47 due on the 9th of each month commencing July 9th, 2014. Please note that a review of Ms. [redacted]'s paperwork indicates that no promotional option, such as a deferred interest option, which PCI does not even offer, has been included with the contract.
Please note that PCI takes industry leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their 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 our Senior Account Representative, [redacted], by phone, with Ms. [redacted], on May 29, 2014 at 1:29pm (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about her purchase or the fact that a deferred interest promotional option was agreed to with the seller. Had this in fact been the case, or if Ms. [redacted] had mentioned that she understood that such a promotional option was made a condition of the contract, we would have clarified that matter with Ms. [redacted] and the original seller at that time. Our records indicate this to not be the case on either count.
A review of Ms. [redacted]'s account file indicates that Ms. [redacted] contacted our offices seeking to obtain the status of her account as well as a copy her payment history and a payoff quote. Our agent, [redacted], informed Ms. [redacted] that the payoff amount at that time was $4,805.99 and that PCI would accept that amount as payment in full if payment was received by April 23, 2015. However, during this conversation Ms. [redacted] also mentioned that she was of the understanding that the financing she obtained for $5,600.00 included a deferred interest promotional option and that this was the amount she needed to pay back. Ms. [redacted] reviewed the contract with Ms. [redacted] and advised her that no such option was provided on her contract and that the loan was in fact for $7,894.56; which is $5,600.00 for the product plus interest in the amount $2,294.56 should the contract go to term. We have no record of ever having provided Ms. [redacted] with a different payoff amount.
A review of Ms. [redacted]'s account file also indicates that on May 14, 2015, Ms. [redacted] again contacted our offices requesting a payoff quote and sought clarification regarding the calculation of the payoff quote. Like Ms. [redacted] before, our agent went over the contract terms with Ms. [redacted], including how interest is applied and was advised that no promotional option was listed on her contract. Ms. [redacted] was further advised that PCI would accept the amount of $4,902.17 as payment in full if payment was received by May 15, 2015.
Unfortunately, to date, it appears we have been unable to satisfactorily address Ms. [redacted]'s questions regarding how interest is accrued on her account. He hope we can address them now.
As indicated previously, Ms. [redacted] entered into what is known as a precomputed retail installment contract. In precomputed retail installment contracts, the finance company is only entitled to those finance charges that we have actually earned under the contract. In Oklahoma, this amount is figured according to the amortization schedule developed based on the Rule of 78s as of the next installment due date if prepayment is not received on the due date. This has been reflected in the both of the payoff quotes that we have provided Ms. [redacted] and can be illustrated by the following itemization:
Amount Financed $5600
Earned Finance Charge + $995.09 (July, 2014 - June, 2015)
Fees Earned + $34.00
Principal, Interest and Fees Earned = $6629.09
Principal, Interest and Fees Earned $6629.09
Payments - $1726.91
Payoff (May 14, 2015) = $4902.18
This payoff amount is still good. Therefore, if we receive this payment amount no later than, June 9, 2015, Ms. [redacted] would close her account as paid in full and save her nearly $1,300 in finance charges.
Finally, we did request that if Ms. [redacted] had any evidence that a promotional option was offered, to please send that to our office. As of today's date we have not received this information from Ms. [redacted].
Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/06/03) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I will send a check for $4,902.18 to satisfy ....
Principal, Interest and Fees Earned $6629.09
Payments - $1726.91
Payoff (May 14, 2015) = $4902.18
This payoff amount is still good. Therefore, if we receive this payment amount no later than, June 9, 2015, Ms. [redacted] would close her account as paid in full and save her nearly $1,300 in finance charges.
and be completed as PAID IN FULL.
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. My mom's account was credited in the amount of $154.66 today. Thank you so much for assisting her with this...
situation and doing so quickly. Happy Holidays to you and yours.Sincerely,[redacted]'s daughter
Initial Business Response /* (1000, 5, 2015/05/11) */
May 11, 2015
Re: [redacted]
Case #: [redacted]
Dear Mr. [redacted]:
Thank you for your correspondence of May 7, 2015, regarding Mr. [redacted]' concerns. I have taken the opportunity to review this matter and ask that you include this...
statement of your position in your department's permanent record.
Preferred Credit, Inc. (PCI) is a third-party regulated lender that finances the sale of various consumer goods by independent sellers. As a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mr. [redacted]' Rainsoft water softener.
To perfect our security interest in the Rainsoft water softener, we must file what is generally known as a fixture filing (also known as a financing statement). The nature of this security interest and how we go about securing our interest is explained in Section twelve (12), "Security Agreement" of Mr. [redacted]' retail charge agreement. This provision, in relevant part, states the following:
"You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $200 or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code). To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..."
This filing will be removed upon the satisfaction of Mr. [redacted]' account.
In review of Mr. [redacted]' file it shows that our office did inform Mr. [redacted] on May 7, 2015, that PCI may be able to work with his title and mortgage company in filing a subordination agreement (a legal document making our filing subordinate to the mortgage) for the fixture filing. It is common practice for mortgage companies to add a debt obligation, such as this, to the mortgage thereby satisfying the note which will in turn release the fixture filing. Perhaps this is an option Mr. [redacted]' may explore with his banker as an alternative option to the one mentioned above.
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, 2015/05/11) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I would like to keep this complaint open until I receive a copy of the signed contract with PCI which I just requested via phone. I was told that it would take 7-10 business days to receive the requested document.
The paragraph that Mr. [redacted] referenced does not specify that a lien will be placed against my home nor was that explained to me (as best that I can remember). I am not aware of the Applicable Law (including the Uniform Commercial Code) and doubt very seriously that the average consumer would read this reference and understand a lien would be placed against their home.
February 6, 2017 Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr. [redacted]: Thank you...
for your correspondence of February 2, 2017, regarding Ms. [redacted]’s concerns. I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record. Please note that Preferred Credit, Inc. (“PCI”) is a regulated lender whose business is limited to the purchase of sales finance contracts and receivables from third-party independent sellers of various household 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 such sales finance contract and receivable, PCI verifies with the consumer that the information the consumer provided in applying for credit was accurate, that he/she understood the terms of the consumer sales finance contract he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase, that he/she received a copy of the financing paperwork and that the original seller fulfilled all of the promises made during the presentation. This account verification process was completed with Ms. [redacted] on October 19, 2016. At that time, Ms. [redacted] was explicitly asked if she understood the terms of her agreement, including the interest rate disclosure, and at no time did she express any concern, dissatisfaction or doubt about any of the aforementioned. Ms. [redacted]’s contract is similarly constructed to help ensure she understood the financing she was requesting in accordance with applicable state and federal law. Under the heading “Additional Terms and Disclosures,” Ms. [redacted] was provided with a summary of the basic terms of the agreement she executed – what interest rate would apply, how she could avoid paying interest, what the minimum finance charge would be, what fees would apply, etc. Additional terms, as well as lengthier descriptions of the aforementioned terms, were disclosed elsewhere in the agreement. Our offices were first made aware that Ms. [redacted] had concerns regarding her account when she contacted our offices on December 13, 2016. At that time, Ms. [redacted] claimed that she was never informed of the finance charges and the interest rate. On December 26, 2016 PCI received an e-mail from Ms. [redacted] indicating that she wanted resolution to this issue and wanted all future dealings to be with PCI and not Carolina Cooking Solution. This e-mail caused PCI to reach out to Carolina Cooking Solution to confirm that the terms of the agreement were discussed with Ms. [redacted] at the time of the sale. Carolina Cooking Solution assured us that the entirety of the agreement, including interest, was discussed with Ms. [redacted] at the time of sale. The distributor also indicated that Ms. [redacted] was fully aware she was financing her purchase, that there was no same as cash offered, and that there was no 0% interest offered. Please note that through the use of policy, procedure, internal controls, training and auditing, our business operations have been structured to ensure that our account servicing meets all business and legal standards. Moreover, as a regulated lender, our financing operations are routinely examined. These examinations verify PCI’s compliance with applicable state and federal regulations including how interest and payments are applied on retail charge agreements. Please rest assured that all accounting on Ms. [redacted]’s account is indeed accurate. Nevertheless, as a relationship driven company, PCI and Carolina Cooking Solutions have agreed to extend Ms. [redacted] a 12 month same as cash option due to the perceived miscommunication. This means that if Ms. [redacted] is able to pay off her remaining principal balance of $4401.61 by October 17, 2017, all finance charges will be waived. We believe this to be more than fair under the circumstances. Should you have any questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted] Compliance Manager
Initial Business Response /* (1000, 5, 2015/07/07) */
July 7, 2015
Re: [redacted]
Case # [redacted]
Our account # [redacted] (Ref#19-18348-[redacted]-4-302)
Dear Mr. [redacted]:
Thank you for your letter of June 29, 2015 regarding Mr. [redacted]'s concerns. I have taken the opportunity...
to review this matter and ask that you include this statement of our position in your department's permanent record.
Our records indicate that Mr. [redacted] entered into a retail charge agreement on August 14, 2010 for the financing of a $4,990 Hague water treatment system. According to that agreement, Mr. [redacted] agreed to make monthly payments of $116.27 to be paid on or before the 15th of each month commencing September 15, 2010.
A review of Mr. [redacted]'s account file shows that he was initially fully engaged in the repayment of his obligation. In fact, Mr. [redacted] made each monthly payment on time through March of 2013. Unfortunately, after, Mr. [redacted]'s payments mysteriously stopped and when no additional payments were forthcoming his account was charged off for non-payment in November 2013. Fortunately, however, Mr. [redacted] was able to pay off the total outstanding balance on his obligation in May of 2014.
We have since ensured that our reporting with the credit reporting agencies accurately reflect these facts. However, please note that the credit reporting agencies may take up to 30 days or longer to update their reports and that this is beyond our control.
Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/07/08) */
(The consumer indicated he/she ACCEPTED the response from the business.)
As long as they report the information to the credit reporting agencies that this has been paid off since May 2014, then we are fine. Right now, it states it was paid off in Feb 2015.
Initial Business Response /* (1000, 6, 2015/08/26) */
August 26, 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 August 21, 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.
Preferred Credit is pleased to inform you that we have reached out to [redacted] regarding Ms. [redacted]'s concerns. They have informed Preferred Credit that Ms. [redacted]'s contract has indeed been cancelled. As a result, we make no further demand for payment, we have closed her account and Preferred Credit has updated all necessary 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, 9, 2015/08/27) */
(The consumer indicated he/she ACCEPTED the response from the business.)
See Attached.
April 5, 2016Re: [redacted]-[redacted] Case # [redacted] (Ref#19-18348-[redacted]-4-302) Our account # [redacted]Dear Mr. [redacted]: Thank you for your correspondence of April 4, 2016. We are sorry to hear that Ms. [redacted]-[redacted] did not accept out initial response. Please include this statement in your department’s permanent record. As stated in our initial response, if Ms. [redacted]-[redacted] would like to listen to the May 27, 2015, telephone conversation we would ask that she contact our Customer Service Manager, Bridget [redacted] to make the arrangements to listen to the call. Ms. [redacted] is available Monday through Friday from 8am to 5pm (CST) and can be reached at ###-###-####. Additionally, on March 28, 2016, our offices forwarded to Ms. [redacted]-[redacted] a copy of the contract she executed. Should there be any other questions or concerns, please do not hesitate to contact me at ###-###-####. Sincerely, John [redacted]Compliance Manager
March 6, 2017 Re: [redacted] ID #: [redacted] Our account # [redacted] Dear Mr. [redacted]: Thank you for your...
letter of March 6, 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 [redacted]’ purchase of a Rainbow home cleaning system from Galaxy 2000 of Austin, Texas. On October 1, 2015, Ms. [redacted] completed a retail installment contract and associated credit application. According to her contract, Ms. [redacted] agreed to make twenty-four (24) equal monthly payments of $138.87 due on the 15th of each month, beginning on January 15, 2016. 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 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 PCI Senior Account Representative, by phone, with Ms. [redacted], on October 3, 2015 at 8:59 am (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about her purchase. A review of Ms. [redacted]’ account shows that she paid her account off in full on February 14, 2017 with a payment of $1,594.33. Despite the fact that her account is currently considered paid in full, with a zero balance, it can take up to 30 days for the credit reporting agencies to update their reporting. On March 6, 2017 at 10:33 am (CST) Ms. [redacted] called into PCI and immediately asked to be transferred to a supervisor. Subsequently, she was transferred to Customer Service Supervisor Casey Cool. Mr. Cool advised Ms. [redacted] that credit reporting is delayed and it could take up to 30 days to accurately reflect her account as paid in full. Additionally, he advised her that if it is not properly updated she would need to file a dispute with the credit reporting bureaus. Ms. [redacted] went on to state that her dispute was with PCI and not the reporting agencies, and she refused to contact them. Mr. Cool then offered to verify that we are accurately reporting with our accounting department and call Ms. [redacted] back. Ms. [redacted] was under the impression that the March 6, 2017 report was current. Mr. Cool again advised her that this is not the case, and that the reporting can be delayed up to 30 days. On March 7, 2017 PCI’s accounting department confirmed that Ms. [redacted]’ account is being reported as paid in full. Upon receiving this information, Mr. Cool reached out to Ms. [redacted] to inform her that as of February 28, 2017 PCI has been reporting her account as paid in full. Based upon the March 7, 2017 phone call between Mr. Cool and Ms. [redacted], PCI feels that this issue has been resolved, and considers the matter closed. Should you have any questions or concerns, please do not hesitate to contact me at (320) 202-7000. Sincerely, John Olmscheid Compliance Manager Tell us why here...
Initial Business Response /* (1000, 5, 2015/11/12) */
November 12, 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 November 9, 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.
Our records indicate that Preferred Credit, Inc. (PCI) financed Ms. [redacted]'s purchase of a Kirby home cleaning system from Quality Cleaning Systems, Inc. of Murrieta, California. According to the retail installment contract she executed on January 8, 2014, she agreed to finance $2,500.00 and repay her obligation by making twenty-four equal monthly installments of $130.92 commencing February 22, 2014.
Ms. [redacted]'s interest accrual concerns appear to stem from a misunderstanding regarding the nature of her retail installment contract. It seems Ms. [redacted] believes her finance charges (interest) were being calculated based on a simple interest basis where interest is accrued on a daily basis based on the outstanding principal balance. This is incorrect. Instead, Ms. [redacted] entered into a precomputed retail installment contract where the finance company is only entitled to those finance charges that we have actually earned under the contract. In California, this amount is figured according to the amortization schedule developed based on the Rule of 78s as of the next installment due date if prepayment is not received on the due date. Meaning, the amount of Ms. [redacted]'s financing (interest accrual) is dependent on both the interest accrual method (i.e. the Rule of 78's) and the timing of her payments. This fact was disclosed to Ms. [redacted] according to applicable law and can be illustrated by the following itemization:
Amount Financed: $2,500.00
Earned Finance Charge: $ 447.32 (January, 2014 - December, 2014)
Fees Earned: $ 45.00
Principal, Interest and Fees Earned = $2,992.32
Less Payments - $2,992.32
$ 0.00
Finally, please note that Preferred Credit is a regulated sales finance company and licensed to conduct business in the states in which conduct business. As such, we are examined on a regular basis regarding our financing operations. These examinations verify Preferred Credit's compliance with applicable state and federal regulations including how interest accrues and payments are applied on retail installment contracts. Please rest assured that all accounting on Ms. [redacted]'s account was accurate.
We thank Ms. [redacted] for her business and we regret any confusion there may have been regarding the financing of her purchase. We hope we were able to bring clarity to this matter.
Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
John [redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/11/20) */
(The consumer indicated he/she ACCEPTED the response from the business.)
(The consumer indicated he/she ACCEPTED the response from the business.)
Thank you I will call them at the number provided. I had no other way of contacting them. Thank you Revdex.com for all your help.
Initial Business Response /* (1000, 5, 2015/05/26) */
May 26, 2015
Re: [redacted]
Case # [redacted]
Our account # [redacted]
Dear Mr. [redacted]:
Thank you for your letter of May 15, 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.
Our records indicate that Preferred Credit, Inc. (PCI) is financing Ms. [redacted]'s purchase of an Easy Rest bed from Easy Rest Adjustable Sleep System of Baltimore, Maryland. On May 29, 2014 Ms. [redacted] completed an application for credit and entered into a precomputed retail installment sales finance contract. According to her precomputed retail installment contract, Ms. [redacted] agreed to forty-eight payments of $164.47 due on the 9th of each month commencing July 9th, 2014. Please note that a review of Ms. [redacted]'s paperwork indicates that no promotional option, such as a deferred interest option, which PCI does not even offer, has been included with the contract.
Please note that PCI takes industry leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their 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 our Senior Account Representative, [redacted], by phone, with Ms. [redacted], on May 29, 2014 at 1:29pm (CST). At no time did Ms. [redacted] express concern, dissatisfaction or doubt about her purchase or the fact that a deferred interest promotional option was agreed to with the seller. Had this in fact been the case, or if Ms. [redacted] had mentioned that she understood that such a promotional option was made a condition of the contract, we would have clarified that matter with Ms. [redacted] and the original seller at that time. Our records indicate this to not be the case on either count.
A review of Ms. [redacted]'s account file indicates that Ms. [redacted] contacted our offices seeking to obtain the status of her account as well as a copy her payment history and a payoff quote. Our agent, [redacted], informed Ms. [redacted] that the payoff amount at that time was $4,805.99 and that PCI would accept that amount as payment in full if payment was received by April 23, 2015. However, during this conversation Ms. [redacted] also mentioned that she was of the understanding that the financing she obtained for $5,600.00 included a deferred interest promotional option and that this was the amount she needed to pay back. Ms. [redacted] reviewed the contract with Ms. [redacted] and advised her that no such option was provided on her contract and that the loan was in fact for $7,894.56; which is $5,600.00 for the product plus interest in the amount $2,294.56 should the contract go to term. We have no record of ever having provided Ms. [redacted] with a different payoff amount.
A review of Ms. [redacted]'s account file also indicates that on May 14, 2015, Ms. [redacted] again contacted our offices requesting a payoff quote and sought clarification regarding the calculation of the payoff quote. Like Ms. [redacted] before, our agent went over the contract terms with Ms. [redacted], including how interest is applied and was advised that no promotional option was listed on her contract. Ms. [redacted] was further advised that PCI would accept the amount of $4,902.17 as payment in full if payment was received by May 15, 2015.
Unfortunately, to date, it appears we have been unable to satisfactorily address Ms. [redacted]'s questions regarding how interest is accrued on her account. He hope we can address them now.
As indicated previously, Ms. [redacted] entered into what is known as a precomputed retail installment contract. In precomputed retail installment contracts, the finance company is only entitled to those finance charges that we have actually earned under the contract. In Oklahoma, this amount is figured according to the amortization schedule developed based on the Rule of 78s as of the next installment due date if prepayment is not received on the due date. This has been reflected in the both of the payoff quotes that we have provided Ms. [redacted] and can be illustrated by the following itemization:
Amount Financed $5600
Earned Finance Charge + $995.09 (July, 2014 - June, 2015)
Fees Earned + $34.00
Principal, Interest and Fees Earned = $6629.09
Principal, Interest and Fees Earned $6629.09
Payments - $1726.91
Payoff (May 14, 2015) = $4902.18
This payoff amount is still good. Therefore, if we receive this payment amount no later than, June 9, 2015, Ms. [redacted] would close her account as paid in full and save her nearly $1,300 in finance charges.
Finally, we did request that if Ms. [redacted] had any evidence that a promotional option was offered, to please send that to our office. As of today's date we have not received this information from Ms. [redacted].
Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted].
Sincerely,
[redacted]
Compliance Manager
Initial Consumer Rebuttal /* (2000, 7, 2015/06/03) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I will send a check for $4,902.18 to satisfy ....
Principal, Interest and Fees Earned $6629.09
Payments - $1726.91
Payoff (May 14, 2015) = $4902.18
This payoff amount is still good. Therefore, if we receive this payment amount no later than, June 9, 2015, Ms. [redacted] would close her account as paid in full and save her nearly $1,300 in finance charges.
and be completed as PAID IN FULL.