Consumer complaint received 2023-07-29
Company: PINNACLE RECOVERY, INC.
State: IA
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
We are members of the XXXX XXXX XXXX and also hold ownership in a XXXX XXXX timeshare. As owners, we are obligated to pay annual maintenance fees. The fee for XXXX was due on XX/XX/XXXX, with the invoice issued on XX/XX/XXXX. Unfortunately, we were unable to meet the payment deadline. 
XXXX XXXX XXXX 's policy allows owners who are behind on payments to request a payment plan before their account is handed over to an external collection agency. Consequently, I reached out to XXXX on XX/XX/XXXX, to establish a payment plan. I made a payment of {$100.00} toward the total amount of the maintenance fee during that call. I was informed that my account would be transferred to XXXX 's XXXX XXXX XXXX XXXX XXXX, who would then bill me monthly for {$100.00}. To ensure I wouldn't miss any monthly payments, I was advised to set up automatic payments with XXXX 
On XX/XX/XXXX, I received my first correspondence from XXXX, which was not a bill but a notification that they had received my account from XXXX. Since I had already made a payment of {$100.00} on XX/XX/XXXX, there was no payment amount stated in the letter. My first bill from XXXX, dated XX/XX/XXXX, arrived in early XX/XX/XXXX. It specified a total amount of {$200.00}, due by XX/XX/XXXX. I promptly signed up for automatic payments on the XXXX  website, as advised, with the payment day being XX/XX/XXXX. 
However, due to my demanding schedule as a XXXX XXXX student pursuing a XXXX XXXX XXXX, I do not have time to routinely check my bank account. XXXX or XXXX did not notify me of a missed payment in XXXX until I received a letter from Pinnacle Recovery Inc., a collection agency, in early XXXX. To my astonishment, the letter dated XX/XX/XXXX, stated that my account had been forwarded to collections. The collection statement included the remaining XXXX maintenance fee, interest ( despite the payment plan being interest-free ), XXXX 's XXXX fee, the payment toward the debt of {$100.00} ( but the date of this payment was intentionally not specified ), and Pinnacle 's collection service charge, totaling {$330.00}. This sum is equivalent to 40 % of the outstanding balance of the XXXX debt. It is crucial to note that neither XXXX nor XXXX informed me that my account would be sent to a collection agency, which was against XXXX 's policy : " 120 days after due dateDelinquent accounts are turned over to an outside collection agency.The management company, on behalf of the XXXX XXXX XXXX XXXX, may, at its discretion, take the following additional steps to collect the unpaid debt owed as well as any other remedy as permitted by the governing documents and applicable state statutes : - Send an Intent to Cancel Membership Notification.- Cancel membership in the Club therefore relinquishing the owner from any rights of ownership or usage.At any time prior to being sent to an outside collection agency, a delinquent owner may request to be placed on a payment schedule.However, you will not be allowed to make any reservations until your account is at a XXXX balance. If an installment plan or payment plan is defaulted, the account is sent to the outside collection agency without further notification. '' On XX/XX/XXXX, I reached out to Pinnacle XXXX XXXX to discuss the legal basis they used to assume my debt for collection. Despite a mere 58 days having elapsed since my last maintenance fee payment to the collection letter, Pinnacle insisted they were following XXXX 's billing policy concerning payments overdue by 120 days. 
OVERVIEW OF ILLEGAL ACTION : XXXX received my payment of {$100.00} towards the total maintenance fee on XX/XX/XXXX. Astonishingly, I received a letter from Pinnacle Collection on XX/XX/XXXX, a mere 58 DAYS AFTER MY MOST RECENT PAYMENT. However, the XXXX policy states that the delinquent accounts are turned over to an outside collection agency 120 days after due date. 
On XX/XX/XXXX, I filed a complaint with the Consumer Financial Protection Bureau ( CFPB ) about this alleged illegal collection action by both XXXX and Pinnacle. Pinnacle 's response was to propose a " monetary relief '' solution, which entailed a 50 % reduction in their fee charge. I find this proposal to be inadequate and unlawful given the circumstances and the law. 
Due to a demanding period of examinations and graduation from law school, I was unable to contest the proposed solution via the CFPB within the stipulated 60-day window. I anticipated receiving an updated invoice reflecting the new amount of Pinnacles fee, but no further communication from Pinnacle has been forthcoming, aside from their response on the CFPB website. 
Currently, XXXX is preventing me from booking any vacations or even paying the new annual maintenance fee due on XX/XX/XXXX. XXXX is unjustly obstructing me from paying the new annual maintenance fee and pressuring me to settle the debt through Pinnacle. I am now considering joining a class-action lawsuit against XXXX. 
In regard to Pinnacle 's unprofessional and illicit demand for fee payment, I recently discovered on the Pinnacle online account that they have astonishingly escalated their fee for me, which now exceeds the amount of my original debt to XXXX. My initial debt to XXXX was {$810.00}, and Pinnacle is now demanding a payment of {$1900.00}. 
Before I proceed with legal action against Pinnacle 's unlawful actions, I want to give them an opportunity to make the right decision : to waive their entire fee and return my account to XXXX. 

XXXX XXXX, XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation