Consumer complaint received 2023-06-15
Company: Bridgecrest Acceptance Corporation
State: TN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
In reference to complaint ( XXXX ) XXXX, XXXX Bridgecrests agent XXXX, has failed to answer any of the complaints put forth. In her response, copied and pasted directly from the Response correspondence, she stated the following : On XX/XX/XXXX, XXXX XXXX entered into the Contract when he purchased a XXXX XXXX XXXX from XXXX. Bridgecrest is the account servicer. At the time of sale, XXXX XXXX had the opportunity to review, acknowledge, and sign the XXXX terms. XXXX XXXX agreed to remit monthly payments of {$260.00} beginning XX/XX/XXXX, as outlined in the XXXX XXXX XXXX XXXX Disclosure box on page XXXX of the Contract. On page XXXX of the Contract, in the section labeled Electronic Signature Acknowledgment, it states : You understand that Seller XXXX transfer this Contract to another company in the electronic form or as a paper version of that electronic form with would then become the authoritative copy. Seller or that other company XXXX enforce this Contract in the electronic form or as a paper version of that electronic formOn XX/XX/XXXX, XXXX XXXX entered into the Contract when he purchased a XXXX XXXX XXXX from XXXX. Bridgecrest is the account servicer. At the time of sale, XXXX XXXX had the opportunity to review, acknowledge, and sign the XXXX terms. XXXX XXXX agreed to remit monthly payments of {$260.00} beginning XX/XX/XXXX, as outlined in the XXXX XXXX in Lending Disclosure box on page XXXX of the Contract. On page XXXX of the Contract, in the section labeled Electronic Signature Acknowledgment, it states : You understand that Seller may transfer this Contract to another company in the electronic form or as a paper version of that electronic form with would then become the authoritative copy. Seller or that other company may enforce this Contract in the electronic form or as a paper version of that electronic form Bridgecrest had a fiduciary responsibility to finance the transaction. The issue with her statement is that she is saying my issue is that XXXX transferred the contract to Bridgecrest. This process is called an assignment. 

XXXX Her implication is that Bridgecrest has no responsibility for Bridgecrests violations. She seems to think that they are not responsible for their own violations and crimes. 
XXXX She made mention that I need to remit payment. 
Well in order for me to REMIT payment, I would need to receive payment first. 
And therein lies Bridgecrests violation of fraud and theft. They havent made any cash advancement in order for me to remit payment. When they dont send the cash advancement they get to keep by operation of law. Then they also receive my monthly payment. 

The assignor : XXXX The assignee : Bridgecrest ( given the right to collect payment on behalf of XXXX, which comes with other obligations to both me and XXXX. Bridgecrest was to incur obligation and make advancement according to XXXX and TN laws ) In other words because XXXX transferred as XXXX put it, which is an assignment, doesnt release Bridgecrest from being held accountable for any violations of the agreement it has incurred. Both the XXXX XXXX were obligated to perform according to the agreement. These types of agreements, purchase money loans ( which according to the FTC guide, the transaction I participated in meets the definition of a Purchase Money Loan ) operate according law What's not being understood here is that this type of transaction is processed ( financed ) according to the rules of contract, commercial law and XXXX accounting. 

Agent XXXX seems to think that just because you signed thats it! Well it matters to common law and commercial law the manner or circumstances in which a person signs a document. 
Consideration matters or the lack thereof. 
The contract that I signed, which was constructed by XXXX and Bridgecrest, was a fraud from the moment it was conceived. It lacked material disclosures required by XXXX, TN law for consumer credit transactions. One of those disclosures, or the law for it is 16 CFR 433.2 Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices ( a ) ( b ) According to the Federal Trade Commissions Staff Guidelines on Trade Regulation Rule Concerning Preservation of Consumers Claims and Defenses, when that disclosure is not made then it is considered a deceptive act, also known as fraud. Now before you go to my contract that XXXX and Bridgecrest constructed and gave to me to sign, which should have been constructed according to XXXX and TN law. 

Please read the guide because it is going to make you aware that the notice is to appear without a qualifying statement. If it does appear with a qualifying statement then the Federal Trade Commission considers this a deceptive act and treats the contract as if the notice is not there. Heres what is printed on my contract. 

Note. If the primary use of the Vehicle is non-consumer, this is not a consumer contract, and the following notice does not apply. NOTICE. ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER This is improper not because I say so, but because the XXXX and TN XXXX requires that the notice appears in consumer credit transactions as the following without a qualifying statement. 

NOTICE. ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER Purpose for the rule according to FTC PURPOSE OF THE RULE In adopting this Rule the XXXX determined that it constitutes an unfair and deceptive practice within the meaning of Section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ) for a seller, in the course of financing a consumer purchase of goods or services, to employ procedures which make the consumers duty to pay independent of the sellers duty to fulfill his obligations. In the course of public proceedings of the Rule the Commission documented numerous cases where consumer purchase transactions were financed in such a way that the consumer was legally obligated to make full payment to a creditor despite breach of warranty, misrepresentation, and even fraud on the part of the seller. Under ordinary contract law, the promises of the parties to a sale transaction are mutually dependent. A seller is entitled to payment provided he delivers what he promised to deliver. If the seller fails to deliver what was promised, the consumers obligation to pay may be reduced or even eliminated. However, it is possible for a seller to arrange credit terms for buyers which separate the consumers legal duty to pay from the sellers legal duty to keep his promises. 

Here is the TN code for this same law.

47-9-403. Agreement not to assert defenses against assignee. 
( d ) Omission of required statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor 's obligation, law other than this chapter requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement : ( 1 ) the record has the same effect as if the record included such a statement; and ( 2 ) the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.

47-9-404. Rights acquired by assignee Claims and defenses against assignee. 
( d ) Omission of required statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor 's obligation, law other than this chapter requires that the record include a statement to the effect that the account debtor 's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement. 


So the contract lacks validity because of a lack of consideration, noncompliance according to TN and XXXX law. This is a breach of contract for those reasons among others. Not because I say so, its what the law prescribes. The contract is XXXX on its face. There is fraud in the inducement. The XXXX XXXX and the transferee also known as the XXXX Bridgecrest are responsible. 

So the implication from agent XXXX that Bridgecrest had the contract transferred which is really an assignment, so therefore assignee Bridgecrest is not responsible for violations of the XXXX XXXX. Well the assignee may not be responsible for the violations of the XXXX XXXX, the XXXX Bridgecrest is responsible for the accounting ( financing ) of the transaction in which Bridgecrest has committed, by not incurring the obligation of making advancements. 

This was a purchase money loan and the contract should be constructed according to XXXX law and operate by the rules of law and Bridgecrest nor XXXX operated accordingly. 

While the law sets a statute of limitations on claims such as these, I am well within the statute of limitations. Just because someone signs doesnt set everything in stone. 

Agent XXXX has acquiescence to the other questions of fraud, deceptive practices, such as forgery, conversion of instrument which is theft. Bridgecrest had an obligation and has 35 times failed to incur obligations and make advancements. All violations are mentioned in Notice Of Effective Assignment. Bridgecrest nor XXXX have responded with monthly statements according to Bridgecrest has also failed to honor modification of contract, assignment from debtor pursuant to TN XXXX. Modification of assigned contract Agent XXXX needs to know that a notice of effective assignment is an assignment coming from the debtor ( XXXX XXXX ) to do the same thing that ( XXXX ) Bridgecrest was supposed to do for XXXX ( XXXX ) and that is to collect payment from the debtor ( XXXX XXXX ), but because the assignor and assignee committed violation ( XXXX ) of the agreement, the debtor ( XXXX XXXX ) has a right to remedy and that remedy can be by modification of contract. An assignment ( modification of the contract ) to the CEO of the financial agency ( Bridgecrest, still the assignee, but now a collector of payment on behalf of assignor XXXX XXXX. 

Bridgecrests agent XXXX, also stated the following in the response to CFPB complaint Upon receipt of XXXX XXXX complaint, we have confirmed all policies, procedures, and applicable laws were followed in the administration of his account. 

The statement is false as this transaction is a cash advancement. I havent received any cash advancements to remit payment. If any payments made by Bridgecrest to XXXX XXXX would have to be in an account I know nothing of. 

Did Bridgecrest open any accounts in my name and deposit checks? 
I would also like to request a statement of account.

Company response to consumer: Closed with explanation