Consumer complaint received 2025-09-23 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Healthcare Finance Direct LLC.
State: NM

Complaint narrative:
To Whom It May Concern, This is an update and escalation to my prior complaint ( ref : Account No. XXXX, XXXX ). 

On XX/XX/XXXX, Healthcare Finance Direct ( HFD ) issued me a formal notice confirming that : My account balance has been adjusted to {$0.00} ; All collection and communication efforts will cease ; and No further payment processing attempts will occur. 


While this action resolves the immediate collection dispute, it fails to address the most critical consumer harm : I have already paid for services and retainers that were never delivered, and no refund has been offered.

Unresolved Consumer Harm I prepaid for retainers and orthodontic treatment that XXXX failed to provide before filing bankruptcy in XXXX. 

The company heavily marketed a Lifetime Smile Guarantee, which was never honored. 

I am now forced to pay a new provider out-of-pocket to complete treatment XXXX abandoned. 

HFDs waiver eliminates only future liability. It does not restore funds already taken under false pretenses. 
-- - Legal Grounds for Refund 1. Truth in Lending Act ( TILA ), 15 U.S.C. 1666i ; CFPB Regulation Z ( 12 C.F.R. 1026.12 ( c ) ) Consumers have the right to assert against creditors and assignees the same claims they could assert against a merchant. Since XXXX failed to deliver services, I may assert this defense against HFD as the payment processor.

2. Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693e & 1693f Prohibits unauthorized or unsubstantiated debits and requires good faith investigation of disputes. Retaining electronic payments for undelivered services is inconsistent with EFTA protections.

3. Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Prohibits furnishing information that is inaccurate or misleading. Reporting a debt for services never rendered is a direct violation.

4. Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g & 1692e ( 2 ) ( A ) TekCollect/HFD reported and attempted to collect on a disputed debt without proper validation. Credit reporting before notice violates the FDCPA and CFPB Bulletin 2013-07.

5. Federal Trade Commission Act, 15 U.S.C. 45 ( a ) ( 1 ) ; FTC Telemarketing Sales Rule, 16 C.F.R. Part 310 Prohibits unfair or deceptive practices. XXXX XXXX XXXX was marketed without disclosure of conditions and was abandoned entirely. This was deceptive at the point of sale.

6. Common Law Doctrines Unjust Enrichment / Restitution : Funds can not be retained where the contracted services were not delivered.

Failure of Consideration ( Restatement ( Second ) of Contracts 237 ) : The core promise of orthodontic treatment was never performed, voiding contr
actual obligations.

Implied Covenant of Good Faith and Fair Dealing : Retaining funds while abandoning obligations constitutes bad faith.

7. New Mexico Unfair Practices Act ( NMSA 1978, 57-12-1 et seq. ) Defines an unconscionable trade practice as taking advantage of consumers or misrepresenting material facts. Accepting funds post-bankruptcy while leaving consumers without treatment falls squarely within this definition.

Case law ( Gonzales v. Surgidev Corp., 1995 ; State ex rel. Stratton v. Gurley Motor Co., 1987 ) confirms that accepting advance payments for services not rendered is per se deceptive.

-- - Requested Actions by CFPB 1. Refund of All Funds Paid I request a full refund
of payments for undelivered treatment and retainers.

If HFD lacks authority, CFPB should require both HFD and the interest holder to disclose who is retaining funds and ensure consumer restitution.

2. Confirmation of Credit Repair Immediate removal of all derogatory credit entries tied to this account. 



3. Ongoing Enforcement Investigation into XXXX use of false Lifetime Guarantee advertising and HFD/XXXX  collection practices, which violate federal consumer protection law. 


Conclusion HFDs waiver of the balance is only a partial resolution. Without refunding monies already paid for undelivered services, I remain financially harmed. The law including TILA, EFTA, FDCPA, FCRA, the FTC Act, and the New Mexico Unfair Practices Act supports my right to redress.

I respectfully request that the CFPB escalate its enforcement to secure a full refund and ensure no further consumer harm results from these deceptive and unlawful practices. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation