Preferred Credit

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

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

Initial Business Response / [redacted] (1000, 5, 2015/05/11) */ May 11, Re: [redacted] Case #: [redacted] Dear Mr***: Thank you for your correspondence of May 7, 2015, regarding Mr [redacted] ' concernsI 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 sellersAs 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 agreementThis provision, in relevant part, states the following: "You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code)To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..." This filing will be removed upon the satisfaction of Mr [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 filingIt 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 filingPerhaps 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 / [redacted] (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 phoneI was told that it would take 7-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

I am rejecting this response because: Good Evening Mr***, 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] ###-###-####

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

April 3, Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of March 29, 2017, regarding Ms***’s concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Please note that PCI is a regulated sales finance company located in StCloud, Minnesota As such, our business is limited to the purchase of retail installment contracts and other forms of indebtedness from independent sellers of various goods As a regulated sales finance company, our financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirementsThe programs extend to our account servicing operations A review of Ms***’s account file reveals that she was set up to make automatic monthly payments of $on the first of each monthThese payments began on June 1, and were scheduled to run until her balance was paid in fullIt appears that Ms***’s concerns arise from a lump sum payment of $that she made on February 21, to pay off her account in full On February 21, Ms [redacted] chose to make a lump sum of payment of $to fulfill her contractual obligationDue to the fact that an automatic draft of $was scheduled for March 1, 2017, Ms [redacted] called into PCI on March 1, at 9:am (CST) and spoke with PCI Senior Account Representative Josie [redacted] to confirm that her account was paid in full, and that an additional draft would not be taken from her accountMs [redacted] informed Ms [redacted] that she would stop the automatic drafts, however, it was too late to stop the draft that took place on March 1, Ms [redacted] informed Ms [redacted] that she would be issued a refund in the amount of $71.04, and that she would receive it in three to six weeks On April 3, at 10:am (CST) Ms [redacted] called PCI to inquire about her refund and spoke with Senior Account Representative Karen ***Ms [redacted] advised Ms [redacted] that a refund in the amount of $had been issued and mailed out on March 30, 2017, and that she should be receiving it soon Based upon this April 3, phone call between Ms [redacted] and Ms***, PCI feels that this issue has been resolved, and considers the matter closed Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

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 meMy mom's account was credited in the amount of $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

May 9, Re: [redacted] ID #: [redacted] PCI Account #: [redacted] Dear Mr***: Thank you for your letter of May 2, 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 recordIt appears that an unfortunate set of circumstances have given rise to Mr [redacted] ’s concerns regarding his account at Preferred Credit, Inc(PCI)We regret these circumstances and apologize for any inconvenience this may have caused Mr [redacted] Our records indicate that PCI financed Mr [redacted] ’s purchase of certain Filter Queen merchandise from Minnesota Health Systems, LLC of Cloquet, MinnesotaThis is evidenced by the retail charge agreement and associated purchase order he completed and executed on October 16, to which he agreed to make minimum monthly payments of $by the 16th of each monthMr [redacted] ’s agreement also provided for a six month same-as-cash option which expired on April 16, PCI first became aware of Mr [redacted] ’s concerns on Friday, April 22, at 4:p.m(CST) when Mr [redacted] contacted our offices and advised that though he issued a check to PCI in the amount of $2,110.00, the check was actually cashed for $3,Our agent advised Mr [redacted] that our Accounting Department had left for the weekend and would return on Monday, April 25th, and that she would need to speak to them regarding issuing a refund to Mr [redacted] Mr [redacted] contacted our offices again on Sunday, April 24th, again to discuss the matterOur agent advised Mr [redacted] again that our Accounting Department was gone for the weekend and that we would have a supervisor contact him first thing on Monday morningOur offices called Mr [redacted] on Monday, April 25th at 8:a.m(CST), apologizing for the error and advised Mr [redacted] that we would overnight a check for $1,to him that same dayThis check was placed in the mail for overnight delivery on Monday, April 25th as promised to Mr [redacted] However, unfortunately, in the interim, a monthly statement was generated on Monday, April 25th at 7:a.minvoicing Mr [redacted] for the interest that had accrued on his account since its inceptionWe regret that Mr [redacted] ’s check in the amount of $2,was incorrectly read by our check scanner and cashed for $3, We further regret that while our office was in the process of issuing a refund check to Mr [redacted] a computer generated invoice was created for [redacted] invoicing him for interest that had accumulated on his accountWe sincerely apologize to Mr [redacted] for this error and for any inconvenience it may have caused him In fact, we have taken steps to work with Mr [redacted] ’s dealer to provide him the replacement wraps for his air purifiers that are scheduled to be replaced at six monthsShould there be any other questions or concerns, please do not hesitate to contact me at ###-###-####Sincerely, John [redacted] Compliance Manager [redacted] Final Response:It is unfortunate to hear that Mr [redacted] has found our response unacceptableThis is unfortunate as we feel we have made every effort to be responsive to Mr [redacted] concerns and to bring clarity to the matter However, we would like to take this opportunity to once again share our regrets over the series of unfortunate events that have taken place on Mr [redacted] account We have, in turn, to do right by Mr [redacted] , ensured that all necessary steps to correct Mr [redacted] account has in fact been undertaken; this includes the prompt refunding of all moneys owed Moreover, we wish to clarify for Mr [redacted] that he has paid his account in full

Initial Business Response / [redacted] (1000, 6, 2015/08/26) */ August 26, Re: [redacted] Case No.: [redacted] (Ref#19-18348- [redacted] -4-302) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of August 21, 2015, regarding Ms [redacted] 's concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Preferred Credit is pleased to inform you that we have reached out to [redacted] regarding Ms [redacted] 's concernsThey have informed Preferred Credit that Ms [redacted] 's contract has indeed been cancelledAs a result, we make no further demand for payment, we have closed her account and Preferred Credit has updated all necessary credit reporting accordinglyFor 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 productsGiven 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 / [redacted] (2000, 9, 2015/08/27) */ (The consumer indicated he/she ACCEPTED the response from the business.)

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

Initial Business Response / [redacted] (1000, 5, 2015/11/12) */ November 12, Re: [redacted] Case No.: [redacted] (Ref#19-18348- [redacted] -4-302) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of November 9, 2015, regarding Ms***'s concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Our records indicate that Preferred Credit, Inc(PCI) financed Ms***'s purchase of a Kirby home cleaning system from Quality Cleaning Systems, Incof Murrieta, CaliforniaAccording to the retail installment contract she executed on January 8, 2014, she agreed to finance $2,and repay her obligation by making twenty-four equal monthly installments of $commencing February 22, Ms***'s interest accrual concerns appear to stem from a misunderstanding regarding the nature of her retail installment contractIt 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 balanceThis is incorrectInstead, 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 contractIn 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 dateMeaning, the amount of Ms***'s financing (interest accrual) is dependent on both the interest accrual method (i.ethe Rule of 78's) and the timing of her paymentsThis fact was disclosed to Ms [redacted] according to applicable law and can be illustrated by the following itemization: Amount Financed: $2, Earned Finance Charge: $ (January, - December, 2014) Fees Earned: $ Principal, Interest and Fees Earned = $2, Less Payments - $2, $ Finally, please note that Preferred Credit is a regulated sales finance company and licensed to conduct business in the states in which conduct businessAs such, we are examined on a regular basis regarding our financing operationsThese examinations verify Preferred Credit's compliance with applicable state and federal regulations including how interest accrues and payments are applied on retail installment contractsPlease rest assured that all accounting on Ms***'s account was accurate We thank Ms [redacted] for her business and we regret any confusion there may have been regarding the financing of her purchaseWe 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 / [redacted] (2000, 7, 2015/11/20) */ (The consumer indicated he/she ACCEPTED the response from the business.)

Initial Business Response / [redacted] (1000, 5, 2015/10/12) */ October 12, Re: [redacted] Case # [redacted] (Ref#19-18348- [redacted] -4-302) Our account # [redacted] Dear Mr***: Thank you for your letter of October 2, regarding Mr***'s concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Please note that Preferred Credit, Inc("PCI") is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with his/her retail charge agreement was accurate, that he/she understood the terms of the agreement he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationThis verification procedure was conducted with Mr [redacted] on February 6, at 11:am (CST) and at no time did Mr [redacted] express concern, dissatisfaction or doubt about the terms of his account or the fact that an interest free promotional option may have been agreed to with the sellerHad there been any issue on either front, we would have clarified that matter with Mr [redacted] and the original seller at that timeOur records indicate this to not be the case on either count Our account verification program helps ensure, in part, that Mr [redacted] understood the terms of his financing as well as the fact that he received a copy of those termsMr***'s agreement is similarly constructed to help ensure he understands the financing he is requestingAll relevant terms and conditions are provided with the agreement and separate actions were taken by Mr [redacted] to attest to the fact that he not only received a copy of those terms and conditions but that he read and agreed to them as wellNoticeably absent from Mr***'s attested to paperwork was any reference to interest free promotional optionUnfortunately, the same cannot be said regarding the fixture filing we filed to secure our interest in the goods Please recall that PCI is a third-party, regulated lender that finances the sale of various consumer goods by independent sellersAs a third-party lender, we take a security interest in the goods sold to ensure repayment of the goods financed: namely Mr***'s Rainsoft water softener To perfect our security interest in the Rainsoft water softener, we must file what is generally known as a fixture filing (also known as a financing statement)The nature of this security interest and how we go about securing our interest is explained in Section twelve (12), "Security Agreement" of Mr***'s retail charge agreementThis provision, in relevant part, states the following: "You grant us a purchase money security interest in each household good purchased with this Account ("Goods") for a price of $or more to the full extent not prohibited by Applicable Law (including the Uniform Commercial Code)To the extent not prohibited by Applicable Law, you agree to pay all official fees and taxes incurred by us when we file a financing statement(s) regarding the Goods..." Generally, this filing will be removed upon the satisfaction of Mr***'s account Our records indicate that on September 28, 2015, our offices received a telephone call from a representative of Wells Fargo requesting that we subordinate our UCC-fixture filing in this matterWe requested that the bank forward to us an authorization from Mr [redacted] requesting the subordination and we advised that we would provide them our requirements Upon receipt of the requested authorization it was determined that Mr***'s account did not meet the qualifications for PCI to remove or subordinate the UCC-fixture filingOne of those factors was that Mr***'s account had a high balance and he was not set up on automatic monthly paymentsHowever, because we are a relationship-driven company, our offices did advise Mr [redacted] on October 5, that should payment of $be received and he agreed to automatic withdrawal for the remainder of his obligation, PCI would re-evaluate his account On October 8, 2015, Mr [redacted] contacted our offices regarding our offerHe subsequently authorized a single payment in the amount of $as well as authorized recurring payments for his monthly installment therefore fulfilling our requirementsWe now only need Wells Fargo to provide us with the appropriate paperwork to complete the subordination Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted] Sincerely, John [redacted] Compliance Manager

March 6, Re: [redacted] ID #: [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of March 6, regarding Ms***’ concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Our records indicate that Preferred Credit, Inc(PCI) is financing [redacted] ***’ purchase of a Rainbow home cleaning system from Galaxy of Austin, TexasOn 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 $due on the 15th of each month, beginning on January 15, 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 productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Prior to the assignment of any 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 presentationThis verification procedure was conducted by a PCI Senior Account Representative, by phone, with Ms***, on October 3, at 8:am (CST) At no time did Ms [redacted] express concern, dissatisfaction or doubt about her purchase A review of Ms***’ account shows that she paid her account off in full on February 14, with a payment of $1,Despite the fact that her account is currently considered paid in full, with a zero balance, it can take up to days for the credit reporting agencies to update their reporting On March 6, at 10:am (CST) Ms [redacted] called into PCI and immediately asked to be transferred to a supervisorSubsequently, she was transferred to Customer Service Supervisor Casey CoolMrCool advised Ms [redacted] that credit reporting is delayed and it could take up to days to accurately reflect her account as paid in fullAdditionally, he advised her that if it is not properly updated she would need to file a dispute with the credit reporting bureausMs [redacted] went on to state that her dispute was with PCI and not the reporting agencies, and she refused to contact themMrCool then offered to verify that we are accurately reporting with our accounting department and call Ms [redacted] backMs [redacted] was under the impression that the March 6, report was currentMrCool again advised her that this is not the case, and that the reporting can be delayed up to days On March 7, PCI’s accounting department confirmed that Ms***’ account is being reported as paid in fullUpon receiving this information, MrCool reached out to Ms [redacted] to inform her that as of February 28, PCI has been reporting her account as paid in full Based upon the March 7, phone call between MrCool and Ms***, 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- Sincerely, John Olmscheid Compliance Manager Tell us why here

February 7, Re: [redacted] ID #: [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of January 31, regarding Mr***’s concerns I have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Our records indicate that Preferred Credit, Inc(PCI) is financing Mr***’s purchase of a Kirby home cleaning system from McGall Equipment Company Incof Slidell, LouisianaOn January 19, Mr [redacted] completed a retail installment contract and credit application According to his contract, Mr [redacted] agreed to make thirty-six (36) monthly payments of $due on the 3rd of each month beginning on March 3, 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 productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Prior to the assignment of any 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 presentationThis verification procedure was conducted by Senior Account Representative, Eva ***, by phone, with Mr***, on January 19, at 1:pm (CST)At no time did Mr [redacted] express concern, dissatisfaction or doubt about his purchaseSatisfied with his responses, we subsequently informed Mr [redacted] he had been approved for financing In addition, please note that Mr [redacted] had until midnight of January 23, 2017, to cancel his contractThe notice of cancellation provided that Mr [redacted] could cancel his purchase by sending or delivering the cancellation notice provided with his paperwork or by sending any other written notice to the original seller, McGall Equipment Company, IncThis does not appear to have been done as proof of such notice was never received by the original seller’s office or by our officeIn fact, Mr***’s own correspondence with PCI seems to indicate that he contacted the distributor via phone to convey his wish to cancel on January 20, but did not ever provide written noticeBecause Mr [redacted] failed to cancel the contract accordingly, the agreement remains in full force and effect, as intended, upon Mr***’s signature on the contract and the passing of the appropriate rescission period Nevertheless, as a relationship driven company, PCI reached out to McGall Equipment Company, Incto determine an appropriate resolution, and is pleased to inform Mr [redacted] and your office that McGall Equipment Company, Incmade the decision to cancel Mr***’s account on January 31, Therefore, PCI will also be cancelling Mr***’s account with us, will make no further demand for payment, will update our reporting with the credit reporting agencies accordingly, and consider the matter closed Additionally, through previous conversations with PCI, Mr [redacted] has indicated that he is willing to send the merchandise back to McGall Equipment Company, IncThe cancellation of Mr***’s account is contingent on the merchandise being returned to the distributorIt is the responsibility of Mr [redacted] to coordinate the return of the merchandise Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

February 6, Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of February 2, 2017, regarding Ms [redacted] ’s concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Please note that Preferred Credit, Inc(“PCI”) is a regulated lender whose business is limited to the purchase of sales finance contracts and receivables from third-party independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Prior to the assignment of any such sales finance contract and receivable, PCI verifies with the consumer that the information the consumer provided in applying for credit was accurate, that he/she understood the terms of the consumer sales finance contract he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase, that he/she received a copy of the financing paperwork and that the original seller fulfilled all of the promises made during the presentationThis account verification process was completed with Ms [redacted] on October 19, 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 lawUnder 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, etcAdditional 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, At that time, Ms [redacted] claimed that she was never informed of the finance charges and the interest rate On December 26, 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 SolutionThis 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 saleCarolina Cooking Solution assured us that the entirety of the agreement, including interest, was discussed with Ms [redacted] at the time of saleThe 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 standardsMoreover, as a regulated lender, our financing operations are routinely examinedThese examinations verify PCI’s compliance with applicable state and federal regulations including how interest and payments are applied on retail charge agreementsPlease 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 month same as cash option due to the perceived miscommunicationThis means that if Ms [redacted] is able to pay off her remaining principal balance of $by October 17, 2017, all finance charges will be waivedWe 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

See Attached

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

April 3, Re: [redacted] A [redacted] ID #: [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of April 3, 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, Incof Engelwood, ColoradoOn March 12, 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 $due on the 2nd of each month beginning on May 2, 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 productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Prior to the assignment of any 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 presentationThis verification procedure was conducted by a Senior Account Representative, by phone, with Ms [redacted] , on March 12, at 6:pm (CST)At no time did Ms [redacted] express concern, dissatisfaction or doubt about his purchaseSatisfied 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 contractThe 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, IncThis does not appear to have been done as proof of such notice was never received by the original seller’s office or by our officeIn 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 periodBecause 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, Incto 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 obligationAs of the date of this letter, Ms [redacted] has a balance of $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: THAT IS A LIETHE FIRST DOCUMENT I SENT IS FOR THE $THAT I DID AND AFTER A COUPLE OF MINUTES LATERI RECEIVED AND EMAIL SAYING I DID A PAYMENT FOR $I CALL THE COMPANY AND TOLD THEM WHAT HAPPENEDONE PERSON TOLD ME I WAS ABLE TO CANCEL IT BECAUSE IT WASNT POSTED DATE FOR THE 16TH IT HAD A POSTED DATE FOR THE 17THSO I WENT ONLINEIT HAD A OPTION TO CANCEL THE $AND NOT THE $SO I CALLED AGAIN THE COMPANY TOLD ME THEY CANT DO NOTHING ABOUT IT BECAUSE I CLICKED ON IT TO PAY THE WHOLE AMOUNTSO IF I CLICKED ON TO PAY FOR THE $HOW DID I GET TWO EMAILS FOR DIFFERENT THINGSSO I WAS ABLE TO CANCEL THE $SO IT WANT CHARGE MY CARD FOR BOTH PAYMENTSTHIS COMPANY IS A LIE!! DOCUMENT ARE ENCLOSED WITH THIS EMAIL

October 27, Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of October 17, 2016, regarding Ms [redacted] ’ concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Please note that PCI is a regulated sales finance company located in StCloud, 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 agenciesThese examinations verify PCI’s compliance with state and federal regulations regarding our financing operations A review of Mr***’ account file reveals that his October installment was missed, and although he resumed his regular payments in November 2014, the missed October payment was never made upBecause of this, Mr [redacted] was essentially always paying one month late and therefore was being charged a monthly late feeIn an October 18, conversation that Mr [redacted] had with PCI Senior Account Supervisor Megan [redacted] PCI agreed to waive all of Mr***’ late fees, making up his missed October payment, and bringing his account currentAs of the date of this letter, Mr***’ account is considered current with his next installment being due on November 10, in the amount of $ PCI has reported these facts to the credit reporting bureausPCI will continue to favorably report on Mr [redacted] credit as long as he continues to pay his monthly payments in a timely mannerPlease note, however, that the reporting agencies may take up to 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