Product: Vehicle loan or lease

Flagship Credit Acceptance LLC XXXX XXXX XXXX XXXX XXXX, PA XXXX Subject : Response to Complaint Review and Request for Release of Vehicle Title Dear Flagship Credit Acceptance LLC, I am writing in response to your XX/XX/year>, communication regarding my complaint filed with the Consumer Financial Protection Bureau ( CFPB ). While I appreciate your acknowledgment of my concerns, your response contains inaccuracies and omissions that merit further review. 

Legal Breaches and Violations 1. Predatory Lending Practices under the Federal Truth in Lending Act ( TILA ) TILA ( 15 U.S.C. 1601-1667f ) mandates clear and accurate disclosure of loan terms, including finance charges, annual percentage rates ( APR ), and fees. However, your internal risk assessment model and the terms of my loan reflect disproportionate interest rates and fees inconsistent with the standard market for borrowers in my credit category. 
Hidden Fees : Despite your assertion that no hidden fees exist, the compounding of extensions and associated costs demonstrates a lack of clarity, constituting a failure to provide the material disclosures required under 12 C.F.R. 1026.17.

Excessive Late Fees : The late fees imposed ( 10 % of the unpaid amount, with a {$5.00} minimum ) may exceed state usury laws, depending on the specific terms disclosed in your contract. Excessive penalties that are arbitrary or disproportionate to actual damages are prohibited under TILA.

2. Equal Credit Opportunity Act ( ECOA ) Violations The ECOA ( 15 U.S.C. 1691-1691f ) prohibits discriminatory practices in credit transactions. By placing bureaucratic obstacles on my requests for a loan modification and due date adjustment, you effectively denied me equal access to amend the loan terms despite my good-faith efforts to resolve the account.

I contacted Flagship on multiple occasions to request both a loan modification and deferred payment, but these efforts were met with resistance. Your failure to provide these options as promised violates contractual good faith and fair dealing principles.

3. Allocation of Payments and Failure to Disclose Payment Application Your response notes that the allocation method used is common to consumer finance companies. However, the lack of transparency regarding how payments are applied ( principal vs. interest vs. fees ) violates TILA disclosure requirements ( 15 U.S.C. 1639 ). This omission prevents me from effectively managing my repayment obl

igations. 4. State Lien Law and Contractual Good Faith Breaches State lien laws typically require lenders to act in good faith when enforcing security interests. Your refusal to waive late fees or offer reasonable modifications, coupled with threats of repossession, undermines the implied covenant of good faith and fair dealing inherent in all contracts. According to UCC 9-610, secured parties must act in a commercially reasonable manner when enforcing security interests. The refusal to accommodate reasonable requests for modifications or deferments, particularly during financial hardship, may be deemed unreasonable under state law. Request for Title Release and Additional Remedies Given the breaches outlined above, I request that Flagship : 1. Release the vehicle title free and clear. Flagships practices, as described, fail to comply with federal and state laws governing loan disclosures, payment application, and equitable modifications. 2. Provide an accurate accounting of all fees and interest accrued to date, with an explanation of their compliance with applicable laws. 3. Cease repossession threats immediately. Any repossession actions without addressing these issues will constitute unlawful seizure under state law. 
I trust that Flagship will recognize its obligation to resolve this dispute in good faith. Please respond to this letter in writing within 14 days.