Consumer complaint received 2025-04-14 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Monterey Financial Services LLC
State: WI

Complaint narrative:
I am filing a formal complaint against Monterey Financial Services LLC for unauthorized debt collection and illegal credit reporting activities related to a foreign timeshare contract I did not legally authorize, consent to, or use. 

In XXXX, during a high-pressure sales presentation while vacationing in XXXX, XXXX was misled by representatives of XXXX XXXX XXXX XXXX XXXX XXXX what they described as a trial vacation membership. No clear explanation of financial liability or future obligations was provided. I was not given time to review or consult an attorney regarding the agreement. I was also never informed that any resulting contract would be sent to a U.S.-based collections agency or reported to U.S. credit bureaus. 

I never provided my Social Security Number, never applied for credit, and never utilized any services related to this so-called membership. Despite this, Monterey Financial Services began reporting this debt to U.S. credit reporting agencies.

Violations and Consumer Harm : 1. Violation of FCRA ( Fair Credit
Reporting Act ) : Monterey has reported a foreign contractual dispute as a U.S. debt without the use of a Social Security Number or any legal documentation establishing jurisdiction in the United States. 
There is no permissible purpose under Section 604 of the FCRA for Monterey to report this on my credit file. 
The company failed to validate the debt under the standards set forth in Section 623.

2. Violation of FDCPA ( Fair Debt Collection Practices Act ) : They are attempting to collect on a debt that is not valid, was never used, and is based on deceptive sales tactics from a foreign company.

They continue collection activities and credit reporting despite multiple disputes.

3. Fraud and Misrepresentation : The original agreement was induced under false pretenses. There was no clear disclosure of credit reporting, long-term financial obligation, or the involvement of a U.S. collections agency.

I never used the vacation club and never scheduled a stay.

I disputed this with Monterey directly. They responded by claiming the contract was valid and that their reporting is accurate, despite acknowledging that I never provided a SSN and that the contract originates with a foreign entity. They cited boilerplate FDCPA language without addressing the illegality of reporting a foreign service agreement on a U.S. credit report.

Their justification is not only legally insufficient, it is a deliberate abuse of the credit system to coerce payment from U.S. consumers on unenforceable foreign obligations.

Requested CFPB Action : Investigate Monterey Financial Ser
vices LLC for unauthorized reporting of foreign contractual obligations as U.S. debt.

Require the removal of all related entries from my credit reports with XXXX, XXXX, and XXXX. 

Sanction or fine Monterey Financial for deceptive and abusive practices in violation of the FCRA and FDCPA.

Refer to the FTC and California regulators for further investigation of unfair international debt collection tactics. 

Supporting Documentation Available Upon Request : Dispute correspondence with Monterey Confirmation of non-use of services Screenshot of tradeline reporting Copy of disputed contract

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