Consumer complaint received 2024-06-17
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Bridgecrest Acceptance Corporation (FL)

XXXX XXXX XXXX XXXX XXXX XXXX, Florida XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXXXXXX, Iowa XXXX Dear Sir/Madam, I am writing to file a formal complaint against Bridgecrest Acceptance Corporation regarding a retail installment agreement I signed on XX/XX/XXXX, to obtain a XXXX XXXXXXXX XXXX for personal, family, and household purposes. After careful review of the agreement, I have discovered several violations of the Truth in Lending Act ( TILA ), the Fair Debt Collection Practices Act ( FDCPA ), the Equal Credit Opportunity Act ( ECOA ) as well as counts of fraud, which I believe violate consumer protection laws overseen by the CFPB. 

Details of the Transaction : On XX/XX/XXXX, I visited XXXXXXXX XXXX Dealerships and entered into a retail installment agreement to purchase a XXXX XXXX XXXX for the initial price of {$22000.00}. The dealership added {$4400.00} in fees, which increased the starting price to {$26000.00}. Additionally, the dealer mandated an excessive interest rate of 14.630 %, claiming that this was the only financing option available to me. They also charged an extra {$13000.00} in undisclosed fees, bringing the total cost of the vehicle to {$40000.00}, minus a {$790.00} down payment that the dealer claimed was required by the bank. 

Moreover, the dealership misrepresented my credit score, stating that it was XXXX when, in fact, my actual credit score was XXXX. This misrepresentation was used to discriminate in the form of the higher interest rate. These actions by the dealership raise significant concerns about the transparency and fairness of the transaction, as well as potential violations of consumer protection laws such as ( TILA ) : Failure to Disclose Accurate Terms : TILA requires that lenders provide clear and accurate information about the terms and costs of credit. Doesnt misrepresenting a consumer 's credit score to justify a higher interest rate violate the transparency required under TILA?

Unfair or Deceptive Practices : TILA prohibits unfair or deceptive practices in lending. Isnt it true that knowingly using and presenting false credit score information to charge an excessive interest rate is considered fraud, deception, discrimination and an unfair practice? 

Violations of the retail installment agreement : TILA : Failure to Disclose Accurate Terms : Finance Charge Misrepresentation : The finance charge and annual percentage rate ( APR ) were not accurately disclosed, as required by TILA. The dealer misrepresented the interest rate and failed to include all fees in the finance charge. 
Citation : " ANNUAL PERCENTAGE RATE The cost of your credit as a yearly rate '' ( Page 1 ) Improper Disclosure of Fees : The additional {$20000.00} in fees was not properly disclosed, constituting a violation of TILAs disclosure requirements.

Citation : " FINANCE CHARGE The dollar amount the credit will cost you '' ( Page 1 ) Misleading Interest Rate Information : The dealer 's assertion that I had to accept a 15 % interest rate without offering alternatives or proper justification is misleading and fraudulent. 
Unlawful Fees : The excessive {$20000.00} in fees, which were not disclosed or justified under TILA, are deceptive and fraudulent.

Disclosure of TotaXXXX of Payments : The total amount of payments over the life of the loan must be disclosed accurately. Errors or omissions in this disclosure are violations. 
Citation : " Total of Payments The amount you will have paid when you have made all scheduled payments '' ( Page 1 ) Disclosure of Payment Schedule : The payment schedule, including the number, amounts, and due dates of payments, must be accurately disclosed. Misleading or incomplete information is a violation. 
Citation : " Payment Schedule Number of Payments Amount of Each Payment '' ( Page 1 ) Disclosure of Total Sale Price : The total sale price, including the cost of the vehicle and all finance charges, must be disclosed accurately.

Citation : " ITEMIZATION OF AMOUNT FINANCED General Terms ; Payments : You have been given the opportunity to purchase the Vehicle and any other products and services identified in this agreement for the Total Sale Price. '' ( Page 4 ) Unfair and Deceptive Acts and Practices ( UDAP ) : Misrepresentation of Credit Score and Interest Rate : The dealership provided false information about my credit score, stating it was XXXX when it was actually XXXX, to justify a higher interest rate of 15 %. This also seems to be a violation of ECOA.

Unnecessary Add-ons Without Consent : The addition of a pre-delivery service fee, a warranty, XXXX coverage, and XXXX without XXXX knowledge or consent. 

Excessive Fees : Overcharging an extra {$20000.00} in fees beyond finance charge. 

Fair Debt Collection Practices Act ( FDCPA ) : Harassment or Abuse ( 15 U.S.C. 1692d ) : Repeatedly contacting me with the intent to annoy, abuse, or harass, and using language that could be seen as threatening or oppressive.

False or Misleading Representations ( 15 U.S.C. 1692e ) : Making false representations about the debt, such as the amount owed or the consequences of non-payment, and threatening legal action that they may not be entitled to take.

Unfair Practices ( 15 U.S.C. 1692f ) : Using unfair or unconscionable means to collect or attempt to collect the debt, such as misrepresenting the status of the debt or the consequences of non-payment. 


Action That I took : Upon discovering violations of TILA, FDCPA and ECOA, I immediately took action. On XX/XX/XXXX, I sent Bridgecrest a debt validation letter ( Exhibit D ), an Affidavit of Truth ( Exhibit A ), a cease and desist notice ( Exhibit C ), and a right of rescission notice ( Exhibit B ). 

Right to Rescind : As part of my actions, I exercised my right to rescind parts of the credit transaction due to fraudulent and deceptive practices involved via certified mail with a green return receipt ( Exhibit E & E2 ). 

On XX/XX/XXXX, I received Bridgecrests response ( Exhibit F ), which stated that they assumed the debt to be valid based on bank statements and terms in the agreement. However, Bridgecrest failed to provide the information I requested, which is a violation of 15 U.S.C. 1692g ( b ) - Validation of Debts. According to this section, if a consumer disputes a debt in writing within 30 days of receiving the initial communication, the debt collector must cease collection efforts until they provide verification of the debt. This verification must include the amount of the debt, the name of the right to the name of the original creditor, and a copy of the original contract or a judgment. If the debt collector fails to provide this information and continues collection efforts, they are in violation of this provision. Furthermore, isnt it true that only the consumer upon receiving the requested information, can validate that it is a true and accurate representation of the transaction? Also, does fraud of this type cancel the entire transaction as though it never happened? 

In response to Bridgecrest 's inadequate reply, on XX/XX/XXXX, I sent them a cease and desist/verification letter ( Exhibit G ) and an invoice ( Exhibit H ) via certified mail with a green return receipt ( XXXX XXXX XXXXXXXX ). I requested that Bridgecrest cease all collection activities related to this alleged debt and any attempts to steal my vehicle. Additionally, I requested, for the second time, that they provide me with the name and address of the original creditor, which they failed to do. 

Included below are all exhibits detailing the specific violations and the location of the proof of my claim. 

Bridgecrest 's Response : XX/XX/XXXX Bridgecrest responded with a letter ( Exhibit I ) to the recent letters I sent on XX/XX/XXXX ( Exhibit G & Exhibit H ). The letter from Bridgecrest contains several violations and issues under TILA, FDCPA, and ECOA. These include failure to provide accurate disclosures, misleading representations, inadequate debt validation, and potential discrimination based on credit score misrepresentation. Bridgecrests failure to address these issues adequately and their continued collection efforts despite a cease and desist notice further exacerbate these violations. 

Violations and Issues in the Letter Truth in Lending Act ( TILA ) Violations : Failure to Provide Accurate Disclosures : The letter does not address the allegation of misrepresented credit score and undisclosed fees, which are violations of TILA 's requirement for accurate disclosures. TILA mandates that creditors provide clear and accurate information about the terms of credit, including the Annual Percentage Rate ( APR ), finance charges, and total amount financed. 
Unlawful Fees : The letter does not address the {$13000.00} in undisclosed fees, a significant violation under TILA, as all fees must be clearly disclosed at the time of the agreement.

Misleading Information : By not responding adequately to the allegations of a misrepresented credit score and excessive interest rate, the letter implicitly confirms these issues, which are violations of TILA 's requirement for clear and truthful disclosures. 
Fair Debt Collection Practices Act ( FDCPA ) Violations : Harassment or Abuse ( 15 U.S.C. 1692d ) : If Bridgecrest continued to contact me despite the cease and desist letter, this is a violation of FDCPA, which prohibits any form of harassment or abuse.

False or Misleading Representations ( 15 U.S.C. 1692e ) : The letter could be considered misleading by failing to acknowledge the misrepresented credit score and undisclosed fees. Misleading a debtor about the nature or amount of the debt violates FDCPA. 

Failure to Validate Debt ( 15 U.S.C. 1692g ( b ) ) : Bridgecrests response failed to adequately validate the debt as required under FDCPA. They did not provide sufficient documentation proving the debt 's legitimacy, including a copy of the original contract.

Equal Credit Opportunity Act ( ECOA ) Violations : Discrimination Based on Credit Score : By misrepresenting my credit score to justify a higher interest rate, Bridgecrest potentially violated ECOA, which prohibits discrimination in any aspect of a credit transaction. 
Failure to Provide Adverse Action Notice : If Bridgecrest used my misrepresented XXXX XXXX to impose a higher interest rate, they should have provided a notice of adverse action explaining the reasons, which is required under ECOA.

Specific Issues with Bridgecrest 's Letter Denial of Rescission Rights : Unjust Denial : Bridgecrest denied my right to rescind the contract based on an arbitrary timeline that does not consider the fraudulent nature of the transaction. Under TILA, consumers have the right to rescind a transaction if it involves fraud or deception.

Inadequate Response to Fraud Allegations : Bridgecrests letter fails to address the core issue of fraud, including the misrepresented credit score and undisclosed fees, which can invalidate the contract terms. 
Lack of Compliance with FDCPA Requirements : Inadequate Debt Validation : Bridgecrests response did not comply with the FDCPAs requirement for debt validation. They should have provided a detailed account of the debt, including the original contract and proof of the debt 's validity. 
Ignoring Cease and Desist : If Bridgecrest continued collection efforts after receiving my cease and desist notice, they are in violation of FDCPA, which prohibits further contact except under specific circumstances. 

Failure to Address ECOA Violations : Discrimination Ignored : The letter ignores my claim of discrimination based on a falsely low credit score, which is a direct violation of ECOA.

Lack of Adverse Action Notice : If Bridgecrest took adverse action ( e.g., imposing a higher interest rate ) based on a misrepresented credit score, they failed to provide the necessary adverse action notice, violating ECOA.

Conclusion The letter from Bridgecrest contains several violations and issues under TILA, FDCPA, and ECOA. These include failure to provide accurate disclosures, misleading representations, inadequate debt validation, and potential discrimination based on credit score misrepresentation. Bridgecrests failure to address these issues adequately and their continued collection efforts despite a cease and desist notice further exacerbate these violations. 

Bridgecrest 's Response : On XX/XX/XXXX, I received another response from Bridgecrest ( Exhibit K ). The document Bridgecrest sent was identical to their first response ( Exhibit F ). This response letter again stated that the debt is still assumed valid based on bank statements and a copy of the agreement. Once again, Bridgecrest ignored my verification request, demonstrating a clear pattern of unprofessional behavior. 

Violations : 1. Truth in Lending Act ( TILA ) Violations : Failure to Provide Accurate Disclosures : The letter does not address the allegations of a misrepresented credit score and undisclosed fees, which TILA mandates must be clearly and accurately disclosed. 
Unlawful Fees : The letter fails to acknowledge the {$13000.00} in undisclosed fees, violating TILAs requirement for transparency. 
2. Fair Debt Collection Practices Act ( FDCPA ) Violations : Failure to Validate Debt ( 15 U.S.C. 1692g ( b ) ) : Bridgecrest did not provide sufficient documentation proving the debt 's legitimacy, such as the original contract, which is required under FDCPA. They continued collection efforts without validating the debt as requested. 
False or Misleading Representations ( 15 U.S.C. 1692e ) : The letter can be considered misleading for not addressing the misrepresented credit score and undisclosed fees.

3. Equal Credit Opportunity Act ( ECOA ) Violations : Discrimination Based
on Credit Score : By not addressing the misrepresented credit score, Bridgecrest potentially violated ECOA, which prohibits discrimination in any aspect of a credit transaction.

Failure to Provide Adverse Action Notice : If the misrepresented credit score was used to impose a higher interest rate, Bridgecrest should have provided a notice of adverse action explaining the reasons, as required under ECOA. 

Bridgecrest 's repeated failure to address these critical issues and provide the requested verification not only underscores their non-compliance with these consumer protection laws but also highlights their unprofessional conduct. Ignoring verification requests and repeatedly sending identical responses demonstrate a lack of respect for the consumer 's rights and concerns. Such behavior undermines trust and indicates a disregard for proper customer service and legal obligations. 

Bridgecrest 's Notice : On XX/XX/XXXX, I received a letter from Bridgecrest ( Exhibit L ) stating that if I do not pay them {$1100.00} by XXXX, they will repossess my vehicle, which is essential for my family and me. Upon reading this letter, I felt very threatened and unsafe. Bridgecrest has knowingly and willingly ignored my cease and desist request, demanding money from me and threatening to take away my only transportation for my family of four, even though I informed them that I have one-week-old twins, a one-year-old, and a wife who needs to attend doctor appointments, and that I have to work every day of the week. Bridgecrest has shown no concern, which made me worry even more for my familys well-being.

Violations Committed by Bridgecrest : 1. **Ignoring the Cease and Desist Request** : Despite receiving my cease and desist request, Bridgecrest continued to contact me, violating the Fair Debt Collection Practices Act ( FDCPA ), specifically 15 U.S.C. 1692c ( c ), which states that if a consumer requests that a debt collector cease communication, the collector must comply.

2. **Failure to Validate Debt** : By not adequately addressing my verification requests and continuing to demand payment, Bridgecrest violated 15 U.S.C. 1692g ( b ), which requires debt collectors to cease collection efforts until they validate the debt.

3. **Harassment or Abuse** : The threatening tone of the letter and the pressure to pay under threat of repossession can be considered harassment under 15 U.S.C. 1692d, which prohibits any conduct that may harass, oppress, or abuse any person in connection with the collection of a debt.

Bridgecrests unprofessionalism and the threatening tone of their communication are deeply concerning. Their disregard for my cease and desist request and failure to consider the personal and medical needs of my family reflect a lack of empathy and professionalism. Their aggressive approach, especially given my repeated requests for verification and my communication about the urgent needs of my family, has caused undue stress and concern for our safety and well-being.

Documents that were Sent and Received : Affidavit of Truth-Exhibit A Detailed under sworn oath, my position and actions.

Included exhibits showing where the violations occurred in the agreement.

Right of Rescission Letter-Exhibit B Exercised my right to cancel the agreement within the allowed period.

Detailed my reasons for rescission.

Requested the return of all payments made within 20 days.

Cease and Desist Notice-Exhibit C Requested that all future communications be in writing and warned against further telephone contact. 
Provided a list of documents I expected them to send. 
Debt Validation Letter-Exhibit D Citing the Fair Debt Collection Practices Act, I requested validation and verification of the debt. 
Asked for proof of their authority to collect the debt within 30 days. 
Certified Mail Documentation-Exhibit E & E2 Sent all documents via certified mail ( Tracking # XXXX XXXX XXXX XXXX XXXX XXXX ) with a green return receipt ( Tracking # XXXX XXXX XXXX XXXX XXXX XXXX ). 
Bridgecrests response-Exhibit F Response Letter Bank Statements Cease & Desist/Verification-Exhibit G I requested that Bridgecrest cease all collection activities related to this alleged debt and any attempts to steal my vehicle. 
Additionally, I requested, for the second time, that they provide me with the name and address of the original creditor, which they failed to do. 
Invoice-Exhibit H For 5 violations Total : {$5000.00} Bridgecrests response-Exhibit I Response Letter Copy of the agreement Certified Mail Documentation-Exhibit J & J2 Sent all documents via certified mail ( Tracking # XXXX XXXX XXXX XXXX XXXX XXXX ) with a green return receipt ( Tracking # XXXX XXXX XXXX XXXX XXXX XXXX ). 
Bridgecrest 's Response-Exhibit K Response Letter Bank Statements Bridgecrest 's Notice-Exhibit L Notice of Right To Cure and Intent To Repossess Personal Impact : As a new father with a XXXX XXXXr and XXXX XXXX as of XX/XX/XXXX, it is paramount that Bridgecrest Acceptance Corporation refrain from jeopardizing my ability to fulfill my responsibilities, care for my family, and ensure our overall well-being. My primary concerns are : Disruptive and Threatening Phone Calls : Receiving phone calls at any time of day or night demanding payment of the alleged debt is both inconvenient and distressing. Such intrusive communications are unacceptable and contribute to unnecessary stress for both my spouse and me, disrupting our ability to care for our children and manage our daily lives. 

Stress-Inducing Written Requests : Bridgecrests practice of sending threatening written demands for payment is a significant source of anxiety. These communications not only cause emotional distress but also undermine our sense of security and stability during this critical period of caring for our newborns and toddler. 

Threats of Vehicle XXXX : Attempts by Bridgecrest to seize our vehicle, which is essential for our daily transportation needs and primarily located on private property, are deeply concerning. The vehicle is vital for taking my wife and children to medical appointments, ensuring I can get to work, and managing our familys day-to-day activities. The threat of repossession exacerbates our stress levels and poses a direct risk to our ability to function effectively as a family unit. 

Violations and Unprofessional Conduct : Ignoring Cease and Desist Requests : Despite my formal request for Bridgecrest to cease all communication, they have persisted, violating the Fair Debt Collection Practices Act ( FDCPA ) under 15 U.S.C. 1692c ( c ). This statute mandates that debt collectors must stop contacting a consumer if requested in writing.

Harassment or Abuse : The nature of Bridgecrests communication, including the threatening tone and persistence despite my cease and desist request, constitutes harassment under 15 U.S.C. 1692d. This provision prohibits conduct that may harass, oppress, or abuse any person in connection with the collection of a debt. 

Professionalism and Tone : Bridgecrests unprofessional behavior and aggressive tone are highly concerning. Their failure to respect my cease and desist request, coupled with their lack of consideration for the personal and medical needs of my family, reflects a troubling disregard for basic professional standards and empathy. Their actions have caused significant emotional distress and have undermined our sense of security and stability during a critical time for my family. Such behavior is unacceptable and must be addressed to prevent further harm to our well-being. 

Requested Actions : Order to Rescind the Credit Transaction : Due to the fraudulent and deceptive practices involved, I request that the credit transaction related to the fraudulent aspects of the agreement be rescinded. 

Order to Rescind/Revoke the Security Interest : I request that the security interest held by Bridgecrest Acceptance Corporation in the XXXX XXXX XXXX be revoked/rescinded. 

Order to provide Compensation : I request substantial compensation for the extensive violations of consumer protection laws and the severe distress they have caused. Specifically, I am seeking {$25000.00} in compensation for the profound mental and emotional anguish inflicted upon me. The relentless harassment, threats, and unfair treatment have caused immeasurable stress, affecting my ability to work and care for my family. In addition to this monetary compensation, I also demand the title to my vehicle. This is crucial to ensure that I am no longer subjected to the undue stress and financial hardship that Bridgecrest 's actions have imposed on me and my family. 

I have enclosed copies of the relevant documents for your review, labeled as Exhibits A through Exhibit L. 
Enclosures : Exhibit A : Affidavit of Truth Exhibit B : Right of Rescission Letter Exhibit C : Cease and Desist Letter Exhibit D : Debt Validation Letter Certified Mail Documentation-Exhibit E & E2 Bridgecrests response-Exhibit F Cease & Desist/Verification-Exhibit G Invoice-Exhibit H Bridgecrests response-Exhibit I Certified Mail Documentation-Exhibit J & J2 Bridgecrest 's Response-Exhibit K Bridgecrest 's Notice-Exhibit L Exhibit M : Copy of Retail Installment Agreement Additionally, I would appreciate any guidance or assistance you can provide me in addressing this matter and obtaining the resolution I require from Bridgecrest Acceptance Corporation if you are unable to grant my requests. 

Thank you for your attention to this matter. I look forward to your prompt response and action on this issue. 


Sincerely, XXXX XXXX XXXX : The Honorable XXXX XXXX, Office of the Attorney General State of Florida XXXX XXXX XXXX XXXX, FL XXXX Federal Trade Commission, XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX Washington, DC XXXX