Consumer complaint received 2026-05-14 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Getting the loan — 
Company: Monterey Financial Services LLC
State: CA

Complaint narrative:
This complaint is against Monterey Financial Services, XXXX as holder of a consumer credit contract under the FTC Holder in Due Course Rule, 16 C.F.R. 433.2. The underlying transaction giving rise to the credit contract is in formal dispute with the seller, XXXX XXXX XXXX BACKGROUND. In XX/XX/XXXX, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX solicited my engagement for tax resolution services through telephone marketing. At the time, I had an active XXXX XXXXXXXX XXXX XXXX XXXX for tax years XXXX and XXXX at approximately {$1200.00} per month. XXXX 's sales representative made XXXX material representations to induce my retention : ( XXXX ) XXXX would reduce my IRS principal from ~ {$27000.00} to ~ {$18000.00} ; ( XXXX ) my monthly IRS payment would drop to ~ {$400.00} ; and ( XXXX ) XXXX XXXX XXXX representation would make direct IRS payments unnecessary. None of these representations was achievable given my {$280000.00} XXXX and voluntary sustained payment history. THE CAPTIVE FINANCING. On XX/XX/XXXX, XXXX had me sign a " Finance Resolution Service Agreement '' solo at XXXXXXXX XXXX ( Attachment XXXX / Finance Resolution Service Agreement ). This triggered the opening of a consumer credit account at Monterey Financial Services, XXXX ( Account XXXX, Application ID XXXX ) for {$5900.00} at 29.9 % XXXX over XXXX months. The XXXX signature XXXX XXXX ( Attachment XXXX ) shows the joint XXXX XXXX XXXX was sent for execution XXXX seconds later, at XXXX XXXX XXXX The Monterey loan account itself was opened XX/XX/XXXX XXXX full day before the joint service contract was even signed. The financing instrument was therefore in place before the underlying service contract existed. MONTEREY IS THE HOLDER. The XX/XX/XXXX Monterey statement ( Attachment XXXX ) identifies " XXXX XXXX XXXX '' as the " Client Name '' on my account confirming XXXX as merchant of record and activating the FTC Holder Rule. To date I have paid Monterey {$2700.00} ( of which {$360.00} has been applied to interest at 29.9 % APR ). The remaining loan balance is {$3500.00} and continues to accrue. THE UNDERLYING SERVICES WERE NOT DELIVERED. XXXX did not perform the substantive services for which the {$5900.00} financed by Monterey was paid. The Forms XXXX I signed authorized representation for tax years XXXX across multiple forms. But IRS Account Transcripts ( Attachment XXXX ) prove XXXX filed Form XXXX only for tax year XXXX a year in which I had a {$0.00} balance and required no representation. XXXX did not file XXXX XXXX for tax years XXXX or XXXX, the only years for which I owed an outstanding balance and the only years for which I engaged XXXX. XXXX IRS notices issued post-engagement for XXXX ( XXXX, XXXX, XXXX XXXX, and XXXX ) were all sent solely to me with no copy directed to any XXXX representative. PRE-SUIT DEMAND. On XX/XX/XXXX I served XXXX with a formal pre-suit demand under XXXX XXXX XXXX XXXX ( Attachment XXXX ) asserting violations of the XXXX, XXXX, and XXXX, with {$6800.00} make-whole damages and {$35000.00} total exposure. Monterey was served simultaneously with a separate notice of disputed account under 16 C.F.R. 433.2. PARALLEL FILINGS. Concurrent complaints are being filed on XX/XX/XXXX with the XXXX Attorney General ( XXXX XXXX Confirmation # XXXX already issued ), the FTC, the XXXX, and the XXXX XXXXXXXX. REQUESTED RELIEF. ( XXXX ) Reimbursement of the {$2700.00} already paid on Account XXXX ; ( XXXX ) discharge of the remaining {$3500.00} balance as a defense under 16 C.F.R. 433.2, or alternatively Monterey 's pursuit of its remedy against the seller, leaving me with no further obligation ; ( XXXX ) cessation of any adverse credit-bureau reporting during the pendency of this dispute.

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