Challenge Financial Services is a subprime auto lending company, which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
What is Challenge Financial Services?
Challenge Financial Services, Inc is a third-party subprime auto loan agency based in California. CFS has received consumer complaints alleging improper billing, collections and credit reporting. If you have been contacted by Challenge, make sure you understand your rights before taking action.
According to the Better Business Bureau (BBB), Challenge Financial Services was founded and incorporated in 1996 in California. The BBB established its profile page in 2013. It lists Challenge as a consumer finance company and an automobile purchasing consultant.
According to its website, Challenge Financial Services purchases and services “subprime auto loans originated by independent and franchise dealers” throughout the Southwest region of the country. The “key” to Challenge’s “success has been establishing close, long-term relationships” with its dealers. “By maintaining a full service local office in each market [it serves], Challenge is able to deliver a superior level of service, convenience, and market focus to [its] dealers and serves “markets throughout the Southwest region” of the country and it purchases and services “subprime auto loans originated by independent and franchise dealers, and [its] customers.”
CFS Website provides information for existing and potential dealer partners. Its dealer pages inform site visitors that Challenge provides point of sale purchases, meaning it will purchase dealers retail installment contracts “at the time of origination, with a focus on quick and consistent funding.”
Challenge also “purchases from any size existing loan portfolio” to give dealers “additional cash flow flexibility” and provides loan servicing, taking care of “collection headaches’ so the dealer can focus on its business. Information for car buyers is limited to payment methods and contacts and an online “customer feedback” form.
The CFS Website does not provide a lot of detailed information about its business practices or compliance policies. It does include standard, legally mandated information about information privacy and security.
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How many complaints are there against Challenge Financial Services?
The BBB has closed 14 complaints against Challenge Financial Services in the past three years, with 3 closed in the past 12 months. Nearly all those complaints allege problems with billing, collections and customer service. Justia lists at least 3 federal civil cases involving CFS.
Can you help me file a No Fee Lawsuit against Challenge Financial Services?
Absolutely. Here are some Sample Complaints
According to information on the BBB website, complaints against Challenge Financial Services raise “billing and collections” and customer service issues. Specifically, consumers complain that they are unable to obtain information about their loans, to resolve loan payment problems even after following the direction of company employees, or to obtain title after fully paying off their loans. Consumers also complain about improper collection tactics and credit reporting. The negative reviews on Challenges BBB profile support these allegations.
In July 2016, a complainant indicated that she was “seeking a lawyer” because of Challenge’s “unethical collection practices and for violating [her] FDCPA [rights.” The complainant alleged that she had financed with Challenge for years and during this time, Challenge representatives had come to her door “for $8.” The complainant indicated that during a recent hospitalization after she lost twins, “multiple different people” from the company “emailed her daily” and, “to top it off”, she received phone calls and texts from their personal numbers. The complainant alleged further that even reaching an agreement with the company did not stop the calls, and that when she called the company to ask why a Challenge representative continued to call her, the complainant was told, “because she can.” The complainant’s calls and voicemails to the legal department have gone unanswered. The complainant indicated that she just wanted to “be out of this loan and not deal with Challenge Financial!”
In November 2015, a complainant alleged that he contacted Challenge, obtained a payoff amount, agreed to send the payoff amount the same day, did so, and CFS received it, but the company claimed he still had a balance due. According to the complainant, he sent a check to CFS for the payoff amount Challenge gave him on the same day he received the number, just as he and the Challenge representative had discussed and agreed. When the complainant contacted Challenge, the company admitted it had received the payment the day before but told the complainant he still had a remaining balance because the payoff was “for that day only” even though he had discussed the timing of the payment specifically with the CFS representative. The complainant alleged further that he was “astonished” and requested to speak to a manager, who “basically insinuated it was [the complainant’s] fault for not asking [for] a certain length of payoff” and essentially admitted Challenge had made a mistake. The complainant indicated that Challenge should “honor [its] mistake and waive [his] remaining balance.”
Contact Information
Challenge Financial Services, Inc. 1004 W Taft Ave #100 Orange, CA 92865-4143 Telephone: (714) 541-3400 Website: https://www.cfsnow.com/
Challenge Financial Services Calling You?
Understanding Your Debt Collection Rights
Consumers are protected from abusive debt collectors from the Fair Debt Collection Practices Act (FDCPA). By way of instance, the debt collector must identify himself or herself, who they’re working for, and what debt they’re collecting. The FDCPA claims that debt collectors can’t use any deceptive or misleading representation, like implying the debt is secured by the USA or any particular state. Additionally, they can’t use a badge or uniform to pretend they’re a government employee collecting a debt. Misrepresentation is a violation of the FDCPA and could be reported as such.
In case you’ve been a victim of a debt collector’s wrongdoing, then you can search for justice under the FDCPA. You have the right to pursue a claim against the debt collector; if you prevail, you can collect up to $1,000, plus attorney fees and court costs.
Want to Stop Challenge Financial Services Debt Collection Harassment Now?
Your debt harassment checklist:
You are receiving multiple calls per week from third party collection agencies
You are receiving early morning or late night calls from debt collectors
You are recieving calls at work from a debt collection agency
Debt collectors are calling your friends, neighbors, or coworkers
Collectors are threatening you with violence, a lawsuit, or arrest
A debt collector attempts to collect more than you owe
You are being threatened with negative credit reporting
A debt collector attempts to intimidate you
Criminal accusations are being made towards you
Use of obscene language during an attempt to collect
Automated robocalls are being made to your phone in an attempt to collect
If you’ve been harassed by debt collectors and even one of these has happened to you, we can help. We will fight for your rights.
The Lemberg Law legal team is committed to holding debt collectors accountable, so complete our form for a FREE case evaluation, or call 844-685-9200.
What Our Clients are Saying
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“I have to admit, I was not sure of y’all initially but you proved me wrong. You not only got the calls to stop but you have the company to dismiss the accounts once and for all! It had been more than I anticipated.”
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“I want to thank you and your team for all of the help you have provided to me. Honestly, you have a excellent staff who has dealt professionally and been very empathetic at one time in my life once I hit a speed bump.”
Can You Help Me Delete Challenge Financial Services from My Credit Report?
We can absolutely help. Call us today.
Can Your Firm Help me Deal with Challenge Financial Services?
The short answer is yes. Contact us now to find out more.
Sound Off!
Have you had a bad experience with this agency’s debt collectors? Sound off and share your experience with other visitors in the comment box below.
About the Author:
Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
The details of my 2016 complaint are 100% correct. I am the person they harassed after loosing twins. And since then they have been inaccurately reporting on my credit and even running my credit continuously. They have never tried reaching out to me but have recently reported false details to my credit even down to saying i recently paid them $1. They reported a charge off in 2016 then all these years its been no data and now in Mar 2021 they are reporting a new charge-off saying they sold the vehicle in Mar 2021 which is inaccurate. They have not tried reaching out even after the complaint they just run my credit and report false info to impact my credit score.
Ruth
Yes I can say that challenge financial has the worst customer service ever ….I stopped working do to complications during my sons birth..he need special care and my husband and I decided for me to stay home tight my baby..my husband is in charge of all the payments now ..which can be very stressful…last month I called the person in charge of my car payments..I explain that my husband had a family emergency in Mexico …he seemed not to care ..but agree that I was able to make the payments by the end of February..it would be the past due payment plus February payment…on our way back from Mexico i received a call from challenge financial ..it was the person in charge of my payments..he said Ruth when are you going to make your payment your account is past due..and I said “we spoke about this couple days ago and you agree that I was able to pay by the end of February..he said he didn’t recall any conversation in regard of the conversation..I got very upset …I hate to receive call from this persona because I feel like he is always harassing me …this company does not want to help when it comes to emergencies ..and if they do decide to helo you out..they don’t do it in a good manner ..I will never finance a car with challenge financial again ..it sad how there work of ethic is one of the worst ..workers need to take a customer service class
Desiree G
Hello I have a loan with challenge financial for my car, whenever I’m late on my payment I get harassed nearly every day by phone calls to me , made to my work, and to my family and friends. And I’ll only be 2-3 weeks late and I pay it every month with late fees. And the harassment is getting worse I get messages early in the morning such as 8 AM and as late as 7 PM, and calls made by blocked numbers by them. I’ve been threatened they will take my car from me when I was no more than 2-3 weeks late. They text me that they are tired of me being late and when I let them know I was sorry and I always pay my late fee and they get a payment every month they tell me I’ll no longer have a chance to do a late payment. The way they talk to me is even belittling and rude.
Amber-Marie S
Constant visits to my job. Where I am not allowed to conduct personal business. They say they are doing you a “favor” by asking for your car keys after a late payment. Instead of taking the vehicle, they came into my place of business during work and asked for the keys in front of my boss. They then followed me into a back room which is off limits to the public, close to the cash office and told me to “hurry up” because they had to go. And that I wasn’t “making it any easier on myself” I explained the vehicle was their’s to take but I could not leave the sales floor without loosing my job. This was about a month ago. Today they came again to my job and asked a manager to see me. At work. If they keep visiting my place of business I will be in trouble. My boss says I get about 2-3 calls a week. Specifically from Mark Florez and Ben Mezquita. They say they are calling about a “loan” and need to “verify employment “ they leave messages with coworkers and leave their numbers for me to “call them back” they call obsessively. Even after I’ve already spoken to them. They want to talk to you everyday despite the fact that I’ve asked them to cease and desist. I have also filed a complaint with the Better Business Bureau in an effort to get them to become more reasonable in their practices. To no avail.
Amber-Marie S
Extremely aggressive practices. They have visited my places of business, resulting in the loss of hours at work. They call me at work constantly even though I have made it clear I cannot accept calls for personal business during work hours. Worried I’ll lose my job. I am very concerned.
The details of my 2016 complaint are 100% correct. I am the person they harassed after loosing twins. And since then they have been inaccurately reporting on my credit and even running my credit continuously. They have never tried reaching out to me but have recently reported false details to my credit even down to saying i recently paid them $1. They reported a charge off in 2016 then all these years its been no data and now in Mar 2021 they are reporting a new charge-off saying they sold the vehicle in Mar 2021 which is inaccurate. They have not tried reaching out even after the complaint they just run my credit and report false info to impact my credit score.
Yes I can say that challenge financial has the worst customer service ever ….I stopped working do to complications during my sons birth..he need special care and my husband and I decided for me to stay home tight my baby..my husband is in charge of all the payments now ..which can be very stressful…last month I called the person in charge of my car payments..I explain that my husband had a family emergency in Mexico …he seemed not to care ..but agree that I was able to make the payments by the end of February..it would be the past due payment plus February payment…on our way back from Mexico i received a call from challenge financial ..it was the person in charge of my payments..he said Ruth when are you going to make your payment your account is past due..and I said “we spoke about this couple days ago and you agree that I was able to pay by the end of February..he said he didn’t recall any conversation in regard of the conversation..I got very upset …I hate to receive call from this persona because I feel like he is always harassing me …this company does not want to help when it comes to emergencies ..and if they do decide to helo you out..they don’t do it in a good manner ..I will never finance a car with challenge financial again ..it sad how there work of ethic is one of the worst ..workers need to take a customer service class
Hello I have a loan with challenge financial for my car, whenever I’m late on my payment I get harassed nearly every day by phone calls to me , made to my work, and to my family and friends. And I’ll only be 2-3 weeks late and I pay it every month with late fees. And the harassment is getting worse I get messages early in the morning such as 8 AM and as late as 7 PM, and calls made by blocked numbers by them. I’ve been threatened they will take my car from me when I was no more than 2-3 weeks late. They text me that they are tired of me being late and when I let them know I was sorry and I always pay my late fee and they get a payment every month they tell me I’ll no longer have a chance to do a late payment. The way they talk to me is even belittling and rude.
Constant visits to my job. Where I am not allowed to conduct personal business. They say they are doing you a “favor” by asking for your car keys after a late payment. Instead of taking the vehicle, they came into my place of business during work and asked for the keys in front of my boss. They then followed me into a back room which is off limits to the public, close to the cash office and told me to “hurry up” because they had to go. And that I wasn’t “making it any easier on myself” I explained the vehicle was their’s to take but I could not leave the sales floor without loosing my job. This was about a month ago. Today they came again to my job and asked a manager to see me. At work. If they keep visiting my place of business I will be in trouble. My boss says I get about 2-3 calls a week. Specifically from Mark Florez and Ben Mezquita. They say they are calling about a “loan” and need to “verify employment “ they leave messages with coworkers and leave their numbers for me to “call them back” they call obsessively. Even after I’ve already spoken to them. They want to talk to you everyday despite the fact that I’ve asked them to cease and desist. I have also filed a complaint with the Better Business Bureau in an effort to get them to become more reasonable in their practices. To no avail.
Extremely aggressive practices. They have visited my places of business, resulting in the loss of hours at work. They call me at work constantly even though I have made it clear I cannot accept calls for personal business during work hours. Worried I’ll lose my job. I am very concerned.