Preferred Credit

November 9, Re: [redacted] Case ID: [redacted] Our account #: Dear Mr***: Thank you for your letter of November 8, 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 the purchase of a $Kirby home cleaning system from HNM Distributions, Incof Tucson, Arizona for [redacted] ***This is evidenced by the retail installment contract and associated credit application he completed and executed on January 8, to which he agreed to make minimum monthly payments of $by the 20th of each month commencing February 20, A review of Mr***’s payment history shows that Mr [redacted] has remained current in his contractual obligation to repay his debt and has chosen to make payments over the minimum amount of $in an effort to pay off his account earlyIn fact, he has made nine payments totaling $ Mr***’s complaint appears to have stemmed from a misunderstanding that occurred on November 7, On November 7, 2016, we now understand that Mr***’s spouse contacted our offices seeking to pay off her account in monthsOur agent misunderstood this request as our agent thought Mrs [redacted] was looking to convert a 36-month contract to a month contractThis misunderstanding led our agent to inform Ms [redacted] that the terms could not be changed and that only a one-time payoff amount could be providedThis was unfortunate Once this matter was brought to our attention, PCI subsequently reached out to Mrs [redacted] in an effort to clear up the confusionFortunately, on November 8, 2016, Mrs [redacted] spoke with supervisor Cassie [redacted] regarding this confusionDuring this call, Mrs [redacted] was advised that if payments of $were made for the next three months, the account would be considered paid in fullThis would essentially turn Mr***’s month contract into a month contract as the ***’s were requestingMrs [redacted] then requested a onetime payoff quote for her November 20, paymentMrs [redacted] was advised that this amount would be $Mrs [redacted] indicated she intends to pay off the entirety of the remaining balance at that time We sincerely regret the circumstances which led to this complaint Nevertheless, with the aforementioned actions, we believe the matter to be closedShould you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

February 15, Re: [redacted] ID #: [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of February 14, 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 Preferred Credit, Inc(PCI) is financing [redacted] and [redacted] ’s purchase of a Filter Queen home cleaning system from Minnesota Health Systems LLC dba Northland Health Filtration of Cloquet, MinnesotaOn April 25, 2015, the [redacted] s completed a retail charge agreement and associated purchase order According to their agreement, the [redacted] s agreed to make equal monthly installments of $due on the 15th of each month, beginning on June 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 with his/her credit agreement was accurate, that he/she understood the terms of the agreement he/she signed, that he/she was not a victim of identity theft, that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationThis verification procedure was conducted by Senior Account Representative, Francisco ***, by phone, with Mr [redacted] , on April 25, at 1:pm (CST) At no time did Mr [redacted] express concern, dissatisfaction or doubt about her purchase A review of the [redacted] s’ account shows that four separate payment attempts were returned due to non-sufficient funds, and five separate payments were made for less than the agreed upon amount of $This caused the [redacted] s’ account to go past due and PCI reported accordingly to the credit bureausAs of the date of this letter, the [redacted] s are currently $and days past due However, we are not without sympathy for the [redacted] ’sIn fact, PCI has already agreed to restructure the [redacted] s’ contractWhile this restructure will both lower their minimum monthly payment amount and will allow the [redacted] s’ to become current, we will be unable to change what was has already happened including what has been reported to the credit reporting agencies as doing so would be a violation of lawMr [redacted] has been made aware of these facts and agreed to the restructureAs an agreement is in place, we consider this matter closed Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

See attached

(The consumer indicated he/she ACCEPTED the response from the business.) Thank you I will call them at the number providedI had no other way of contacting themThank you Revdex.com for all your help

April 5, 2016Re: [redacted] - [redacted] Case # [redacted] (Ref#19-18348- [redacted] -4-302) Our account # [redacted] Dear Mr***: Thank you for your correspondence of April 4, We are sorry to hear that Ms [redacted] - [redacted] did not accept out initial responsePlease include this statement in your department’s permanent recordAs 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 callMs [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 executedShould there be any other questions or concerns, please do not hesitate to contact me at ###-###-####Sincerely, John [redacted] Compliance Manager

Initial Business Response / [redacted] (1000, 5, 2015/09/28) */ September 28, Re: [redacted] Case No.: Case# # [redacted] (Ref#19-18348- [redacted] -4-302) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of September 23, 2015, regarding Ms [redacted] 's concernsAs we strive to provide the best possible customer service, I have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Our records indicate that we are financing the purchase of a Kirby home cleaning system for [redacted] and [redacted] from Metro Rhino Distributors, LLC of Alpharetta, GeorgiaThis is evidenced by the credit application and retail installment contract completed and executed by Mrand Ms [redacted] on June 15, and the account verification that was completed with Mr [redacted] that same day by phoneAccording to the contract they signed, Mrand Ms [redacted] agreed to finance $over thirty-six equal installments of $starting July 21, PCI makes available to our customers the option of making payments onlineFor online payments, PCI employs a fully integrated and automated system serviced by US BankWhen a customer opts to pay online, PCI directs the customer through a link at our website to the processing center at US BankUS Bank then takes all appropriate actions securing the transaction: i.everifying the customer with their account, ensuring that there are sufficient funds, etcUpon completion of this process, US Bank then coordinates withdrawal of all associated payments authorized by the consumerThe fact that this payment system runs independently of all other payment systems appears to have contributed to the circumstances which led to the filing of this complaint On June 12, 2015, Ms [redacted] contacted our offices to establish a new payment arrangement and proceeded to do so by providing the relevant banking information and authorization in order to draft the necessary payment on the 21st of each month commencing June 21, However, Ms [redacted] already had an existing payment authorization which was previously established online on April 21, for the same amount and on the same dateTherefore, when Ms [redacted] established the new payment arrangement on June 12, 2015, this had the practical consequence of having two concurrent automatic payments set up on her account - one payment through the online system Ms [redacted] set up on April, 21, (through what we now know is her "old" bank account) and a second monthly payment that Ms [redacted] set up directly with our offices on June 12, (through her current bank account)It now appears evident that this was not Ms [redacted] 's intention as her intention had been to update the bank account from which the automatic payments would be withdrawn on her existing automatic payment arrangement This issue appears to have re-presented itself on June 19, 2015, when Ms [redacted] logged onto the US Bank website and attempted to cancel her June 21st payment and reschedule it to be withdrawn on June 25, While the automated system does allow for our customer's to make changes to their payment dates, it does need to be done in a timely manner so as to afford US Bank a reasonable opportunity to act on itUnfortunately, Ms [redacted] 's request on June 19th to reschedule the payment did not allow a reasonable amount of time for the payment to be rescheduled and the payment was attempted on June 21st pursuant to the online recurring payment plan Ms [redacted] set up in April which was not honored by Ms [redacted] 's bank due to non-sufficient fundsAs a result Ms [redacted] incurred associated fees for the dishonored payment on their PCI accountThe recurring payment set up with our offices on June 12, 2015, however, did successfully go through Nevertheless, PCI is pleased to inform Ms [redacted] and the Revdex.com that PCI, as a relationship-driven company, we will be waiving the $fee Ms [redacted] incurred for the dishonored paymentWe wish to inform Ms [redacted] and the Revdex.com that we will be reviewing our procedures internally and the automated system serviced by US Bank online to see where we may improve so as to avoid this issue in the future Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted] Sincerely, John [redacted] Compliance Manager Initial Consumer Rebuttal / [redacted] (3000, 7, 2015/09/29) */ (The consumer indicated he/she DID NOT accept the response from the business.) Preferred Credit has not resolved the issue of my bank being overdrafted due to the second incidentAll I am asking is them to credit my bank account the $that was charged to my account from being overdrawn due to their online payment system not honoring the change of draft date Final Business Response / [redacted] (4000, 9, 2015/09/30) */ September 30, Re: [redacted] Case No.: Case# # [redacted] (Ref#19-18348- [redacted] -8-3100) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of September 29, We are sorry to hear that Ms [redacted] did not accept our initial responsePlease include this statement in your department's permanent record As you may recall, in our initial response Preferred Credit, Inchad agreed to waive the $fee Ms [redacted] incurred with our office for the dishonored paymentHowever, pursuant to Ms [redacted] 's request, Preferred Credit, Incwill instead make a one-time ACH deposit of $into Ms [redacted] 's bank account on file with our officeWith that, we believe the matter to be closed Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted] Sincerely, John [redacted] Compliance Manager

Initial Business Response / [redacted] (1000, 5, 2015/12/23) */ December 23, Re: [redacted] Case No.: [redacted] (Ref#19-18348- [redacted] -4-302) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of December 17, 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 Preferred Credit, Inc(PCI) is a sales finance company incorporated in the State of Minnesota and licensed in the states that we do businessOur business is limited to the purchase of sales finance agreements from third-party, independent sellers or various household goods As an assignee lender, our business practices have been structured to ensure that any consumer PCI provides financing for understands the original sale, their underlying debt obligation as well as the financing relationshipThis is accomplished through an industry leading customer verification system that is designed, in part, to ensure we have the correct consumer information, to ensure we have the correct agreement terms and to ensure we have a legally valid and binding agreement Our records indicate that Ms [redacted] sought to purchase a Rain Soft water treatment system on November 21, from [redacted] of Pompano Beach, FloridaOpting not to purchase the merchandise outright by cash, check or credit card, Ms [redacted] elected to have her dealer seek out financing by completing and executing a purchase order and associated retail charge agreement that same day Our records also indicate that on or around August 12, 2015, PCI account representatives spoke with both Ms [redacted] , and her husband [redacted] , regarding her request for financing and to verify that the information Ms [redacted] provided with her agreement was accurate, that they understood the terms of the agreement she signed, that the monthly payments required under the agreement fit into their monthly budget, that Ms [redacted] was not a victim of identity theft, that Ms [redacted] was happy with the purchase, and that the original seller fulfilled all of the promises made during the presentationSatisfied with their responses, we subsequently informed Ms [redacted] she had been approved for financing In turn, as a relationship-driven company, special effort is made in order to help our customers manage their accountsWe do this as it is in both the financial interest of the customer as well as PCI that payment be made on a timely basisWe therefore employ special calling and letter campaigns to help alert customers as to their account status so that they can avoid unnecessary fees and adverse credit reporting; all within the standards provided under applicable state and federal law Finally, please note that Ms [redacted] had until midnight of August 10, 2015, to cancel her purchaseThe notice of cancellation provided that Ms [redacted] could cancel her purchase by sending or delivering the cancellation notice provided with her paperwork or by sending any other written notice to the original seller, [redacted] This does not appear to have been done as proof of such notice was never received by the original seller's office or by our officeIn fact, Ms [redacted] 's own correspondence with the Revdex.com seems to indicate that only phone calls were madeBecause Ms [redacted] failed to cancel the agreement accordingly, the agreement remains in full force and effect, as intended, upon Ms [redacted] 's signature on the agreement and the passing of the appropriate rescission period Nevertheless, PCI is pleased to inform Mrs [redacted] and your office that PCI, as a relationship-driven company, has decided to close Mrs [redacted] 's account with our offices and make no further demand for paymentTherefore, we will update our reporting with the credit reporting agencies accordingly and consider the matter closedHowever, we understand that [redacted] , will be contacting Mrs [redacted] to coordinate the return of all merchandise Should you have any questions or concerns, please do not hesitate to contact me at (320) [redacted] Sincerely, John [redacted] Compliance Manager Final Business Response / [redacted] (4000, 12, 2016/01/25) */ Mr***: We wanted to inform you as to an update on the below complaintAs you will note, Mrs [redacted] had certain concerns regarding the sale, installation and service she received from [redacted] regarding the water treatment system she purchased from themShe therefore sought to have her account closedWe, in turn, fulfilled Mrs [redacted] 's request and closed her accountThe Revdex.com subsequently closed the complaint on January 13, as no further word had been received from Mrs [redacted] regarding her concerns Since our initial response, it appears Mrs [redacted] has had a change of heartNow, instead of cancelling her account as originally intended, Mrs [redacted] and her husband would like to keep the merchandise, albeit at half the priceThe distributor subsequently contacted our offices to see if we could finance their purchase under the new termsWe stated we could provided that we could verify with the Mrand Mrs [redacted] that this is indeed their intent We have since received confirmation of their intent to purchase on January 19, when we spoke with Mr [redacted] by phoneWe therefore provided the financing they requested under the new terms of the deal they struck with the distributorWe now wish to inform the Revdex.com of this development in light of our previous response Should you have any questions or concerns, please do not hesitate to contact us Sincerely, John [redacted] Compliance Manager Preferred Credit, Inc

Initial Business Response / [redacted] (1000, 5, 2015/09/16) */ September 16, Re: [redacted] Case No.: Case# [redacted] (Ref#19-18348- [redacted] -4-302) Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of September 10, 2015, regarding Ms***'s concernsAs we strive to provide the best possible customer service, I have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Our records indicate that we are financing Ms***'s purchase of a Kirby home cleaning system from DC Distributors, Incof Wilmington, MassachusettsThis is evidenced by the application and retail installment sale agreement completed and executed by Ms [redacted] on January 14, and the account verification that was completed with Ms [redacted] that same day by phoneThis phone call verified that the information that Ms [redacted] provided on her credit application was accurate, that Ms [redacted] understood the terms of the contract she signed, that Ms [redacted] was happy with the purchase and that the dealer fulfilled all of the promises made during the presentationAt no time did Ms [redacted] express concern, dissatisfaction or doubt about any of the aforementionedWith that, the proceeds of Ms***'s agreement were sent to DC Distributors, Inc., the original seller Our records also indicate that, in conjunction with her retail installment sale agreement, Ms [redacted] completed and executed an "Authorization for Preauthorized Payments." According to the terms of Ms***'s authorization, Ms [redacted] authorized Preferred Credit to draft payments from her banking account in the amount of $on the 14th of each month until "PCI is paid in full, or PCI and Bank/Financial Institution have received written notification from me of its termination at such time and in such a manner as to afford PCI and Bank/Financial Institution a reasonable opportunity to act on it." Ms***'s understanding of these terms were verified during our account verification Ms***'s present concerns appear to stem from a conversation she had with one of our agents back on June 30, On that date, Ms [redacted] contacted our offices and advised our agent, LaDonna ***, that she wanted a "bill mailed to my address." Ms [redacted] proceeded to clarify by asking Ms***, "You would like to receive a statement?" Ms [redacted] responded affirmatively and provided the necessary authorization to receive monthly statements Unfortunately, this did not appear to be the result Ms [redacted] intendedOn August 19, Ms [redacted] contacted our offices to discuss the automatic payment arrangement she believed she had cancelled on June 30, Our agent reviewed the notes from that date and advised Ms [redacted] that our records showed no request to stop her automatic payment arrangementMoreover, our agent advised Ms [redacted] that in order do so she was required, under the terms of her authorization, to send in written notice of her cancellationMs [redacted] then requested to listen to the recording of that callOur agent informed Ms [redacted] in turn that this request would require supervisor review and authorization and that someone would get back with her within hours regarding her requestThis did not appear to have occurredWe eventually cancelled Ms***'s automatic payment arrangement when Ms [redacted] sent her cancellation by fax a few days later On August 26, 2015, Ms [redacted] followed up with our offices regarding whether we had reviewed the call recording from June 30th and to request reimbursement for the bank fees she incurred as a result of our drafts on August 17thOur Customer Service Supervisor Monica [redacted] advised Ms [redacted] that she would contact Ms [redacted] after the June 30, call had been reviewed (which was reviewed that same date)This too did not appear to have been done even by the time Ms [redacted] contacted our offices again on September 3, where Ms [redacted] was again advised that our Customer Service Supervisor would follow up with her On September 10, 2015, Ms [redacted] contacted our offices requesting to speak with Ms [redacted] Our agent advised Ms [redacted] that Ms [redacted] was not available and was transferred to another supervisor, Chandler [redacted] Ms [redacted] spoke with Ms [redacted] and advised her that the June 30th call had been reviewed and advised that there was no request that had been made to cancel her automatic paymentsMs [redacted] then requested to listen to the call to which Ms [redacted] informed Ms [redacted] that this would need to first get authorizedOur records reflect that at 12:p.m(CST) on that same date our offices attempted to speak with Ms [redacted] to play the call for Ms [redacted] to no avail We value Ms [redacted] as a customer and we regret any confusion that stemmed from the conversation that took place on June 30thWe also sincerely apologize for our failure to promptly follow up with her regarding her requestIn light of this, Preferred Credit, Incwill be crediting Ms***'s account in the amount of $70, the amount which Ms [redacted] claims she incurred from her bank related to our August 17th draftAgain, we apologize for these oversights and regret the circumstances which may have led to the present situation Finally, we wish to inform Ms [redacted] and the Revdex.com that we will be reviewing our procedures to see where we may improve so as to avoid these issues in the futureShould 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, 2015/07/07) */ July 7, Re: [redacted] Case # [redacted] Our account # [redacted] (Ref#19-18348- [redacted] -4-302) Dear Mr***: Thank you for your letter of June 29, 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 Our records indicate that Mr [redacted] entered into a retail charge agreement on August 14, for the financing of a $4,Hague water treatment systemAccording to that agreement, Mr [redacted] agreed to make monthly payments of $to be paid on or before the 15th of each month commencing September 15, A review of Mr***'s account file shows that he was initially fully engaged in the repayment of his obligationIn fact, Mr [redacted] made each monthly payment on time through March of Unfortunately, after, Mr***'s payments mysteriously stopped and when no additional payments were forthcoming his account was charged off for non-payment in November Fortunately, however, Mr [redacted] was able to pay off the total outstanding balance on his obligation in May of We have since ensured that our reporting with the credit reporting agencies accurately reflect these factsHowever, please note that the credit reporting agencies may take up to 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 / [redacted] (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 fineRight now, it states it was paid off in Feb

Initial Business Response / [redacted] (1000, 8, 2016/03/07) */ March 7, Re: [redacted] Case # [redacted] (Ref#19-18348- [redacted] -4-302) Our account # [redacted] Dear Mr***: Thank you for your correspondence of February 22, I have taken the opportunity to review this matter and ask that you include this statement of our position in your department's permanent record Please note that Preferred Credit, Inc("PCI") is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household productsAs such, PCI takes industry-leading, independent measures, beyond what is required by law, to ensure that any consumer that seeks financing with PCI understands their underlying debt obligation as well as our financing relationship Our records indicate that PCI is financing Mr [redacted] 's purchase of a Rainbow home cleaning system from Premier Air, LLC of Acworth, GeorgiaAccording to Mr [redacted] 's contract, he agreed to finance $2,with monthly payments of $with the first payment due February 8, Prior to the assignment of any sales finance contract, PCI verifies with the consumer that the information the consumer provided with his/her credit application was accurate, that he/she understood the terms of the retail installment contract he/she signed, that he/she was not a victim of identity theft (including verifying a line of credit), that he/she was happy with the purchase and that the original seller fulfilled all of the promises made during the presentationThis verification procedure was conducted with Mr [redacted] on December 18, at 8:pm (CST) and at no time did Mr [redacted] express concern, dissatisfaction or doubt about the terms of his accountWith that, the proceeds of the contract were paid to the original seller Review of Mr [redacted] 's account reveals that on February 13, 2014, our offices spoke with Mr [redacted] regarding his account as his scheduled payment was not honored by his bankMr [redacted] updated our offices with his current address located in Jackson, Mississippi and advised that his "account got caught up in some fraudulent activity" and would need to provide us with new account information During the next few months, Mr [redacted] made payments towards his account with some periodic late installmentsAlso during this time, Mr [redacted] called our offices and expressed concern regarding our credit bureau reporting regarding his accountOn October 24, Mr [redacted] filed a complaint with the Revdex.com regarding those same concerns and we responded to themWe can provide a copy of our previous reply to the Revdex.com should that be necessary Mr [redacted] continued to make installment paymentsOn December 17, 2015, Mr [redacted] called our offices requesting to make a payment towards his accountHowever, four days later, on December 21, 2015, Mr [redacted] called our offices and claimed he was victim of identity leftDuring this telephone conversation, our office requested Mr [redacted] send us a copy of police report regarding the same and upon receipt our fraud department would investigate the matter On January 27, 2016, our offices received faxed correspondence consisting of a front page of the City of Jackson's police investigative report, dated January 7, 2016, regarding Pretense, as well as five pages of an Identify Theft Victim's Complaint and AffidavitThis affidavit is a standard affidavit available through credit bureau reporting agenciesUpon receipt of the information provided, our fraud department began investigating the matter PCI takes all assertions of fraud seriouslyGiven the results of this investigation PCI believes the contract to be validHowever, should Mr [redacted] obtain additional documentation supporting his claim of identity theft, we ask he forward same to our officeUpon receipt, PCI will re-evaluate the matter Should there be any other questions or concerns, please do not hesitate to contact me at (320) [redacted] Sincerely, John [redacted] Compliance Manager

February 13, Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of February 10, 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 As a regulated sales finance company, PCI’s financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirementsHowever, we have not developed these programs to merely meet applicable state and federal regulations Rather, we have in addition tailored our programs in light our experiences as an indirect lender to better serve the individuals and markets we serve This means we make special effort to ensure that our customer’s understand their obligations and our financing relationshipThis includes taking the opportunity to review their request for financing with the individual personally as well as provide the consumer with complete and accurate disclosures, in the form of an agreement, pursuant to applicable law Despite these efforts, there appears to be some lingering confusion as to nature of the agreement Ms [redacted] reviewed and agreedMs [redacted] presents two forms for the Revdex.com’s review: a welcome/assignment notice and the purchase orderPlease note that neither were developed to address the concerns Ms [redacted] has regarding her financingThe welcome/assignment notice simply informs Ms [redacted] that PCI has purchased her contract from the distributor and the purchase order merely identifies what purchase is being applied to her agreementThe information relevant to Ms [redacted] ’s concerns is contained under the heading “Additional Terms and Disclosures” portion of her agreementAttached you will find a copy of the “Additional Terms and Disclosures” that accompanied Ms [redacted] ’s executed retail charge agreement Additionally, PCI generally records its calls for quality assurance purposesThey are not generally released for any other purposeNevertheless, if Ms [redacted] would be willing to call into our customer service line at ###-###-####, and ask for either Bridget [redacted] or Megan [redacted] they could play the October 19, verification call for her over the phone Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

October 26, Re: [redacted] Case No.: [redacted] Our Account No.: [redacted] Dear Mr***: Thank you for your correspondence of October 26, 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, our financing operations are routinely examined for compliance with applicable state and federal law and we have developed programs to meet these requirementsHowever, we have not developed these programs to merely meet applicable state and federal regulations Rather, we have in addition tailored our programs in light our experiences as an indirect lender to better serve the individuals and markets we serve This means we make special effort to manage our relationship with our customers as it is in the interests of both Preferred Credit, Incand the customer that payment is made on a timely basis as non-timely payments result in late fees and adverse credit reporting A review of Ms [redacted] ’ account file reveals that her October installment was not honored by her bank for non-sufficient fundsMs [redacted] therefore incurred NSF fees totaling $Moreover, Ms [redacted] made a separate payment of $that was applied on October 12, 2016, outside of her ten day grace periodThus, this payment was past due and incurred a late fee On October 10, Ms [redacted] was contacted by PCI Senior Account Representative Isis Molina [redacted] in an attempt to alert Ms [redacted] to the fact that her previous attempt at payment had been returned due to non-sufficient funds and to attempt to secure her October installmentAt this point, Ms [redacted] indicated that her credit card had been stolen which caused the installment to be returnedShe also indicated that she was now willing to make a payment to satisfy her October installmentMs [redacted] was then advised that any payment she attempted to make on October 10th would not be processed until October 12th due to the Columbus Day holidayMs [redacted] was advised that once this payment was posted, it would fall outside of her day grace period and she would incur a late fee in addition to her NSF feeMs [redacted] became unhappy and asked if PCI could waive the fees due to the hardship of her card being stolenAfter speaking with a supervisor, MsMolina [redacted] informed Ms [redacted] that PCI would be willing to waive the late fee but the NSF fee would still need to be paidMs [redacted] then attempted to make a payment over the phone via a credit card but was unwilling to pay the service fee and chose to pay online via her checking accountAt no point during this call did MsMolina [redacted] indicate that the NSF fee would be waivedIn fact, she made it quite clear to Ms [redacted] that only the late fee would be waived On October 26, Ms [redacted] placed a call to PCI and spoke initially with Senior Account Representative Jackie [redacted] regarding payment of the previously applied NSF feeDuring this October 26, phone call Ms [redacted] was transferred to PCI Senior Account Supervisor Cassie [redacted] Speaking with Ms [redacted] , Ms [redacted] claimed that she was previously told that all fees would be waived and she never paid late, as she was within the day grace periodMs [redacted] reviewed what happened with Ms [redacted] ’ account and why she was being charged the $NSF feeMs [redacted] then requested to be taken off automatic payments and Ms [redacted] offered to do so but advised Ms [redacted] that there would be a onetime $fee to provide mailed statementsMs [redacted] declined to pay this fee and chose to remain on automatic payments Nevertheless, as a relationship-driven company, PCI reached out to Ms [redacted] to discuss her concerns In speaking with Ms [redacted] , we have agreed to waive the $in NSF fees Ms [redacted] has incurredWe therefore believe the matter to be closed Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

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

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

January 30, Re: [redacted] N [redacted] ID #: [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of January 23, regarding Mrs***’s concernsI have taken the opportunity to review this matter and ask that you include this statement of our position in your department’s permanent record Our records indicate that Preferred Credit, Inc(PCI) is financing Mrs***’s purchase of a Kirby home cleaning system from Perseverance, Incof Layton, UtahOn June 10, 2016, Mrs [redacted] completed a credit application and retail installment contract According to her contract, Mrs [redacted] agreed to make equal monthly installments of $due on the 1st of each month through automatic payments through her Mountain America Credit Union checking account ending in ***Please note that the salesperson advised our offices on that same date that Mrs [redacted] was offered a month same as cash promotional option Please note that PCI is a third-party, regulated lender whose business is limited to the purchase of sales finance contracts from third-party, independent sellers of various household 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 Mrs***, on June 10, at 7:pm (CST) At no time did Mrs [redacted] express concern, dissatisfaction or doubt about her purchase During the course of the conversation with Mrs***, she was advised that her agreement included a 12-month same as cash optionMrs [redacted] was asked if she understood what that meant, to which Mrs [redacted] responded, “Yeah, I guess if I pay it off in the first months the finance charge is waived, or something like that?” To which the PCI Senior Account Representative responded “Right.” Mrs [redacted] then asked “And would that months start from the first of August?” To which the PCI Senior Account Representative responded “NoIt would start from the date of the signing of the contract.” If Mrs [redacted] had any further questions regarding the promotional option, we would have clarified that matter with Mrs [redacted] and the original seller at that timeOur records indicate this to not be the case There was no further discussion regarding the promotional option Our account verification program helps ensure, in part, that Mrs [redacted] understood the terms of her financing as well as the fact that she received a copy of those termsMrs***’s agreement is similarly constructed to help ensure she understands the financing she is requesting in accordance with applicable state and federal law The terms related to “Same as Cash Plan” were disclosed in paragraph in Mrs***’s contract As part of our quality assurance program, we attempted to follow up with Mrs [redacted] regarding her financing on multiple occasions beginning on June 20, and through December 15, Unfortunately, our offices were unsuccessful in reaching Mrs [redacted] via telephone during this timeHowever, PCI was able to contact the co-buyer MsAretta Butler who indicated that, to the best of her knowledge, everything was working fine with the products and that Mrs [redacted] had received all of the products promised by the dealer A review of Ms***’s account file indicates that Mrs***’s automatic payment on December 1, 2016, was returned due to non-sufficient fundsAs a result, Mrs***’s account was removed from the automatic payment programSubsequently, her December 19, and January 3, attempts at payment were also returned due to non-sufficient funds Her monthly statement provided Mrs [redacted] detailed information regarding her account including the accrual of interestOur offices also continued our efforts in attempting to reach Mrs [redacted] by calling her on the telephone numbers she provided with her applicationOn December 15, at 8:pm (CST) Mrs [redacted] called into PCI and made a promise to make a payment of $124.00, which was broken when her December 19, payment attempt was returned due to non-sufficient fundsAgain, on December 23, at 4:pm (CST) Mrs [redacted] called in to inform PCI that she had made her payment onlineA Senior Account Representative informed Mrs [redacted] that multiple attempts at payment had been returned due to non-sufficient funds and Mrs [redacted] hung up The first communication our offices had with Mrs [redacted] regarding her “same as cash” option occurred on January 22, at 6:pm (CST)During this call a PCI Senior Account Supervisor advised Mrs [redacted] that, per the “same as cash” clause on the back of her contract, because her December payment was late, she would no longer be eligible for the “same as cash” promotionAt this point, Mrs [redacted] refused to make any further paymentsMrs [redacted] reached out to PCI via e-mail on January 23, stating that it is wrong to take away her “same as cash” option when the year is not up and she is enduring hardship while her husband is deployedShe also claimed that the details of the “same as cash” option were never disclosed prior to signing the contractThis is in direct conflict with the June 10, verification call where Mrs [redacted] indicated she understood what the “same as cash” option entailed Nevertheless, PCI prides itself as being a relationship-driven companyPCI will reinstate Mrs***’s same as cash option upon completion of the following conditionsFirst, Mrs [redacted] must re-enroll in automatic paymentsAdditionally, she will need to bring her account current, including all currently applied fees, as soon as possibleAs of the date of this letter, the amount needed to bring Mrs***’s account current is $Once these conditions are satisfied, should Mrs [redacted] continue to make at least her minimum monthly installment and pay off her amount financed before the expiration of her option, all interest will be waivedHowever, should Mrs [redacted] fail to satisfy the previously stated conditions, or make her regular monthly installment in the future, her same as cash option will be voided We believe this to be more than fair under the circumstances As stated previously, Mrs***’s account is currently not set up for recurring automatic paymentsIf Mrs [redacted] would like to re-set her automatic payments, we would ask her to call our Customer Service department during operating hours, Monday through Friday from a.mto p.m(CST), on Saturdays from a.mto p.m., and Sundays from p.mto p.m Should you have any questions or concerns, please do not hesitate to contact me at ###-###-#### Sincerely, John [redacted] Compliance Manager

Initial Business Response / [redacted] (1000, 5, 2015/05/26) */ May 26, Re: [redacted] Case # [redacted] Our account # [redacted] Dear Mr***: Thank you for your letter of May 15, 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) is financing Ms***'s purchase of an Easy Rest bed from Easy Rest Adjustable Sleep System of Baltimore, MarylandOn May 29, Ms [redacted] completed an application for credit and entered into a precomputed retail installment sales finance contractAccording to her precomputed retail installment contract, Ms [redacted] agreed to forty-eight payments of $due on the 9th of each month commencing July 9th, Please note that a review of Ms***'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 relationshipPrior 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 our Senior Account Representative, [redacted] , by phone, with Ms***, on May 29, 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 sellerHad 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 timeOur records indicate this to not be the case on either count A review of Ms***'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 quoteOur agent, [redacted] ***, informed Ms [redacted] that the payoff amount at that time was $4,and that PCI would accept that amount as payment in full if payment was received by April 23, However, during this conversation Ms [redacted] also mentioned that she was of the understanding that the financing she obtained for $5,included a deferred interest promotional option and that this was the amount she needed to pay backMs [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,for the product plus interest in the amount $2,should the contract go to termWe have no record of ever having provided Ms [redacted] with a different payoff amount A review of Ms***'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 quoteLike Ms [redacted] before, our agent went over the contract terms with Ms***, including how interest is applied and was advised that no promotional option was listed on her contractMs [redacted] was further advised that PCI would accept the amount of $4,as payment in full if payment was received by May 15, Unfortunately, to date, it appears we have been unable to satisfactorily address Ms***'s questions regarding how interest is accrued on her accountHe hope we can address them now As indicated previously, Ms [redacted] entered into what is known as a precomputed retail installment contractIn precomputed retail installment contracts, the finance company is only entitled to those finance charges that we have actually earned under the contractIn 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 dateThis 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 $ Earned Finance Charge + $(July, - June, 2015) Fees Earned + $ Principal, Interest and Fees Earned = $ Principal, Interest and Fees Earned $ Payments - $ Payoff (May 14, 2015) = $ This payoff amount is still goodTherefore, 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,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 officeAs of today's date we have not received this information from Ms*** 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 / [redacted] (2000, 7, 2015/06/03) */ (The consumer indicated he/she ACCEPTED the response from the business.) I will send a check for $4,to satisfy Principal, Interest and Fees Earned $ Payments - $ Payoff (May 14, 2015) = $ This payoff amount is still goodTherefore, 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,in finance charges and be completed as PAID IN FULL