Consumer complaint received 2026-05-28 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Monterey Financial Services LLC
State: TX

Complaint narrative:
I am filing this formal complaint against Monterey Financial Services, LLC for explicit violations of the Fair Debt Collection Practices Act ( FDCPA ) and XXXX XXXX XXXX The agency is attempting to collect unauthorized fees, applying contractually groundless interest to a maintenance fee dispute, misrepresenting the debt, and using automated credit reporting as a coercive high-pressure tactic while refusing to validate the calculations under the ruling contract. XXXX. Direct Violations of Contractual Fee Limits The debt originates from a legacy XXXX timeshare contract. The ruling Promissory Note explicitly limits the charges a collection agency can assess. Paragraph XXXX Violation : The contract explicitly states : " The monthly collection fee shall be {$4.00} ''. It explicitly mandates a monthly structure and requires a 30-day written notice for any change. The Overcharge : Monterey Financials official statements show they applied a flat, unauthorized {$480.00} " Collection Fee '' immediately upon taking the file. They have no contractual authority to replace a {$4.00} monthly fee with a massive lump-sum penalty. XXXX. Contractual Misapplication and Misrepresentation of Interest The collection agency has fabricated an unlawful interest structure to artificially inflate the balance : No Interest on Maintenance Dues : Paragraph XXXX of the signed Promissory Note explicitly states that interest is strictly calculated on the outstanding " Principal Sum '' of the original purchase loan. There is no provision in the contract allowing interest to be assessed on unpaid operational Maintenance Fees. False Statements : In a written communication dated XX/XX/XXXX, a Monterey Financial representative stated that my balance " accrues daily at XXXX ''. This is completely unsupported by the contract, and constitutes a direct misrepresentation of the character and amount of a debt under the FDCPA. XXXX. Refusal to Validate and Continued Credit Harassment I have attempted to engage in multiple good-faith phone calls to obtain a transparent ledger of these calculations. Monterey representatives repeatedly refused to answer, used evasive scripts, and claimed they placed a " cease and desist '' on my file to justify their lack of responsiveness. A supervisor explicitly stated they would refuse to review the contract terms, would simply mark the account as " disputed, '' and would knowingly continue reporting this inflated, unvalidated balance to the credit bureaus to maximize leverage against me during an open commercial loan underwriting process. Good-Faith Resolution Attempted Monterey Financials own internal documentation from XX/XX/XXXX establishes an official Opening Balance of {$1300.00}. On XX/XX/XXXX, I extended a contractually accurate settlement offer of {$1500.00}. This represents their stated opening principal ( {$1300.00} ) plus the contractually allowed {$4.00} monthly fee for the 30 months the file has been open in their office ( {$4.00} XXXX = {$130.00} ). The agency flatly refused to accept this contractually compliant payment.

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