Consumer complaint received 2025-12-22 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with additional add-on products or services — 
Company: Monterey Financial Services LLC
State: MD

Complaint narrative:
I am submitting this complaint regarding improper billing, unlawful collection activity, and threatened credit reporting for services that were never used, never performed, and were legally unenforceable due to my active bankruptcy case. 

In or about XX/XX/2025, while I was under the protection of the U.S. Bankruptcy Court, I was approved for tax-related services through Offer Tax. The Internal Revenue Service ( IRS ) was a creditor in my bankruptcy case. 

Offer Tax represented that they could resolve my IRS matters while I was in bankruptcy. However, they did not obtain trustee approval or court authorization to perform or bill for any services, which is required when a debtor is in bankruptcy. Because of this, and because no lawful approval was obtained, I did not proceed with or use the service. 

No services were ever performed. No tax returns were prepared or filed. No negotiations or resolutions were conducted by Offer Tax. 

During my bankruptcy case, the IRS submitted its response confirming that * * no tax debt was owed * *, and the matter was resolved through the bankruptcy process itself. 

Despite this, after notice that : * I was in bankruptcy, * the IRS matter was resolved through bankruptcy, and * no services were used or authorized, I later began receiving collection notices from Monterey Financial Services, a third-party finance and collection company acting on behalf of Offer Tax. These notices demanded payment and threatened negative credit reporting. 

Key facts : * I was in an active bankruptcy case at all relevant times. 
* The IRS was a creditor in that bankruptcy. 
* The IRS confirmed in the bankruptcy proceedings that no balance was owed. 
* Offer Tax did not obtain trustee or court approval to perform or bill for services. 
* I never used or received any services from Offer Tax. 
* I notified the company that I did not proceed because services could not lawfully be performed without bankruptcy approval. 
* I repeatedly contacted both Offer Tax and Monterey Financial Services. 
* I was passed back and forth between the merchant and the finance company. 
* Monterey Financial issued collection letters claiming I was past due and threatening credit damage despite the debt being disputed and legally unenforceable. 
* The amounts demanded varied and included approximately {$810.00}, {$900.00}, {$770.00}, and over {$8000.00}. 
* No validation has been provided showing court approval, trustee authorization, services rendered, or a lawful basis for collection. 

Attempting to collect money for services that were never used, never performed, and could not legally be performed during an active bankruptcy constitutes unfair, deceptive, and abusive acts and practices. 

I am requesting that the CFPB require the companies involved to : * Immediately cease all collection activity * Correct their records to reflect that no debt exists * Confirm in writing that no negative credit reporting has been made or will be made * Investigate these practices for violations of federal consumer protection laws and bankruptcy-related protections.

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