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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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.
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.”
Here are some actual consumer complaints from ConsumerAffairs.com along with an average rating of 1.2 ⭐ out of 5 . They seem pretty unpopular on FB too, where their average rating is 1 ⭐ out of 5
“Aurora the manager and ALL THE employees I’ve talked to are LIARS and blame the DMV and others for their mistakes. Challenge Financial services is the RUDEST, WORST CUSTOMER SERVICE I’ve dealt with. They SCREWED with my time and life. They didn’t do their job and blame DMV. I DO NOT RECOMMEND them to anyone. STAY AWAY FROM THIS CAR LOAN COMPANY.” – Shahram of Corona, CA
“They will hound you like you’re some idiot who doesn’t know how to do anything. They are outrageous with their attitudes and threats. I bought a car from a dealership and ended up with them as my finance company. I have paid for two years never missing a payment. When I changed jobs my paydays changed. I called and asked if my payment date could be changed. I was told no, and that I didn’t pay on the day they said then they would come take my car from me. Excuse me! Two years never missing a payment and you threaten to take my car if I pay a few days later. It wasn’t like I was gonna be 30 days late or anything. And they will call several times a day. In fact they called a few minutes ago and I said I just got off work and am paying the payment in a few minutes. I was in the middle of making the payment and they called again harassing me. Stay clear from them. As soon as I can I am trading my car in and getting my bank to finance me. Then good riddance to CFS.” – D. A. of San Jacinto, CA
“This is the worst company I have ever had to deal with. These people could care less about how to treat people. Literally, if I could put zero stars I would. In fact I would put fire balls and black holes instead. ** you, Challenge Financial Services, you crooks!!! Next stop, Better Business Bureau!!!!” -Austin of Scotts Valley, CA
Challenge Financial Services, Inc.
1004 W Taft Ave #100
Orange, CA 92865-4143
Telephone: (714) 541-3400
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.
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.
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