Consumer complaint received 2019-10-02
Company: Scott Fetzer Financial Group Inc.
State: CA
Product: Debt collection
Sub-product: I do not know
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
XXXX - CFPB Fraud Complaint - UCFS & XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX : XXXX ) and their finance partner - United Consumer Financial Services ( abbrev. UCFS ). 
Contracts On XX/XX/XXXX, I entered into a 36-month installment contract, {$360.00} per month with XXXX to acquire their H2 Molecular Hydrogen Water System to assist my wifes recovery from the complications of Chronic XXXX XXXX. 
Concomitantly, my wife entered into XXXX Case Study Program agreeing to pay me {$350.00} per month for 36 months. 
We would not have done the former ( entered into an installment contract to purchase ) without the latter ( acceptance into XXXX Case Study Program that provided funds to offset monthly payments due under the installment contract ). 
XXXX  Acts of Fraud - Two months after delivery, the product ceased working. Over the past 4 months, numerous phone calls, texts and email messages were made to XXXX and they have yet to repair or replace the product under their 3-year warranty. 

- Three months after entering XXXX Case Study Program, XXXX ceased making payments to me. Over the past 3 months, numerous phone calls, texts and email messages were made to XXXX and they have yet to restore payments to me under their program. 
XXXX Questionable Reputation - On XX/XX/XXXX, XXXX published an article stating over 300 users have reported complaints about XXXX poor product performance and questionable business practices. 
XXXX XXXX XXXX - We have first-hand experience witnessing XXXX poor product performance and questionable business practices. 

- A check on the internet shows published customer complaints date back to as early as XX/XX/XXXX. Customer complaints began and grew over 21 months before I entered into the installment contract to acquire XXXX product. https : XXXX XXXX Complicity in Fraud Elements of Fraud. a. purposeful misrepresentation of an important fact ; b. to a victim who justifiably relies on the misrepresentation ; and c. who suffers actual loss as a result. 

My counsel advises : ( 1 ) UCFS had implied notice of XXXX product performance and questionable business practices before taking assignment of / buying my installment contract ; ( 2 ) the circumstances indicate we are victims of fraud perpetrated by both parties ; and ( 3 ) civil fraud ( our complaint here ) has a lower threshold for proof vs. criminal fraud. 

Consider the following : - The installment contract was prepared on UCFSs stock finance paper by XXXX, naming XXXX as seller and XXXX XXXX as buyer. Subsequently, UCFS took assignment this financing, accepting seller ( XXXX ) and buyer ( me, XXXX XXXX ). 

- We presume UCFS vetted both seller and buyer as responsible parties in their credit review process assuming we would both satisfactorily complete our respective contractual obligations. 

- As a part of the credit approval process of vendors from whom they buy finance paper, UCFS is expected to know ( implied notice ) of XXXX reputation before taking assignment of / buying an installment contract from XXXX. 

There is a business truism coined by the XXXX XXXX and followed by business entities interested in maintaining sound reputations make sure the quality goes in before the name goes on. 

It is apparent either ( 1 ) UCFS suffered a lapse in judgement not adequately checking the quality of XXXX reputation before accepting financings with Trusiis name on UCFS corporate paper or ( 2 ) UCFS didnt care. Whether it is the former or the latter, this situation takes on the hue of complicity in a fraudulent activity. 

- The abundance of XXXX customer complaints and UCFSs willingness to accept assignment of my Installment Contract suggest UCFS was more interested being the beneficiary of a 17.99 % interest rate installment contract than declining to take assignment of / buying a contract from a Seller with questionable business practices. 

Based on the foregoing, we consider ourselves the victims of a joint fraud activity perpetrated by XXXX and their finance partner, UCFS. 
Corrective Action Required.

- It is clear : misrepresentations were made, we are victims of fraud and we suffer loss. 
XXXX misrepresented their contractual obligations under their product warranty and Case Study Program. 
UCFS suffered a lapse in judgment accepting assignment of our contract with XXXX  name as Seller after a preponderance of unfavorable XXXX commentary on the internet beginning nearly 2 years before UCFS accepted assignment of our Installment Contract. 

- It is incumbent on UCFS to : Rescind our installment contract returning all payments made - It is incumbent on XXXX to : Cooperate with UCFS in this fraud investigation Gain UCFSs approval to ( 1 ) rescind the installment contract rendering it null and void ( 2 ) return all payments we made under the installment contract and ( 3 ) authorize XXXX to arrange pick-up of the product with XXXX paying for all costs. 

Both parties have been put on notice, my bank has initiated a fraud investigation reclaiming 3 of the 6 payments made to UCFS, my bank auto debit has been deactivated and payments will no longer be made to UCFS. My counsel is investigating a cause of civil fraud against XXXX & UCFS. 
We look forward to a speedy resolution to this situation with UCFS and XXXX performing as required. If this does not occur, we will take legal action to get the above resolved in our favor. 

XXXX XXXX XXXX ( Buyer ) & XXXX XXXX XXXX ( Case Study Participant ) XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with non-monetary relief