Company Response
2/7/2024
On August 10, 2023, Michelle signed the Contract, along with an application for credit and an EFT Authorization for a puppy provided by the The Puppy Store - Henderson. (Copy of Contract provided to BCA for review).
Michelle received multiple disclosures specifically identifying the interst rate. The application and contracting process presents the interest rate to the consumer at least three (3) times prior to the consumer signing and agreeing to the terms.
Michelle's Contact included a 90 Day Finance Charge Cap Promotion ("Promotion"), which means if the balance is paid in full within the 90 days Michelle will pay no more than $40 in Finance Charges if the full balance is paid during the promotional period and meets all the promotion requirements set forth below:
1. Pay the entire Amount Financed, any fees owed (such as Late Fees or Dishonored Payment Fees), and the earned Finance Charges up to $40; and
2. Have no payment that was over 30 days past due; and
3. NOT otherwise be in default under your agreement during the Promotional Period.
The "Promotional Period" bean on the date of the Contract and expired on Novemeber 8, 2023. The terms and conditions of the Promotion are provided during the application process and are referenced in detail within the Contract, as well as within a separate Promotion rider that is in the contract Michelle signed. Michelle would have had to pay more than the amount and listed payment frequency in Michelle's payment schedule in order to meet the terms of the promotion.
As part of the Contract, Michelle financed $2,800.00 at 148.99%. The total Finance Charge for the agreement is capped at $6,356.16. This means that no matter how long it takes Michlle to pay of the loan, once the total Finance Charge for the account has been met, the account will not accrue more interest. As an item of note, if Michelle only makes the minimum contractualy payments on the account, Michelle will pay the loan for the full 24-month term. To pay less interst on the account, Michelle can make larger or additional payments, or Michelle can also pay the account in full at any time, as there is no penalty to pay the account off early. it is also important to mention that although there is a cap on the total Finance Charges for the account, Michelle is still responsible for any other relevant fees as detailed in the Contract.
When finalizing the Contract, Michelle was required to scroll through the terms of the Contract multiple times in order to sign the contact and provide a contract code to the merchant to finalize the purchase. By signing the Contract, Michelle attested that Michelle read, understood, and agreed to the terms of the Contract. Additionally, the Truth-In-Lending Act disclosures were provided at loan closing which clearly outlines the terms.
We respectfully decline the request to cancel the Contract. The debt remains valid and outstanding, as the debt has not been paid.
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