Product: Vehicle loan or lease

This complaint is submitted against Carvana LLC and XXXX for improper repossession practices, breaches of the retail installment contract and loan modification agreement, and violations of applicable state and federal laws. The following issues require immediate investigation and resolution : 1. Failure to Provide Notice of Assignment or Sale of Contract Carvana LLC assigned or sold the retail installment contract to XXXX without providing proper notice or full disclosure of the terms of the transfer. This failure constitutes a breach of the retail installment contract, which explicitly requires adherence to applicable disclosure laws. 

Lack of proper notice deprived the borrower of critical information regarding changes in account servicing and payment obligations. Documentation of the assignment or sale, including dates and notifications provided, must be disclosed. 

2. Misapplication of Payments and Balance Discrepancies The retail installment contract specifies the True Daily Earnings Method for calculating finance charges and requires payments to be applied first to earned but unpaid finance charges, then to other amounts owed. Despite this, payments made between XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX and XX/XX/XXXX, were not properly credited, leading to an unexplained increase in the loan balance. This increase suggests : Improper allocation of payments between principal and interest. 

Application of excessive or unlawful fees inconsistent with Texas usury laws. 

Failure to follow the agreed terms for calculating and applying finance charges. 

XXXX must provide a detailed, itemized account history clearly showing how payments were applied during this period, including daily or monthly finance charge accruals. 

3. Violation of the Loan Modification Agreement The Loan Modification Agreement, executed on XX/XX/XXXX, allowed for deferred payments with continued accrual of finance charges using the simple interest method. The agreement expressly prohibited additional fees for the modification and disclosed that deferred payments would result in higher finance charges. Despite these terms : The balance increased far beyond what was disclosed or reasonable based on the agreed terms. 

Finance charges appear to have been improperly calculated, or payments were misapplied. 

Additional unexplained fees may have been added, in violation of the agreement. 

XXXX failed to ensure compliance with the terms of the loan modification and must address how the balance was calculated. 

XXXX. XXXX XXXX Practices The retail installment contract and Texas law require repossession to be conducted peaceably and without damage to property. The repossession that occurred on XX/XX/XXXX, caused property damage to a neighbors property, constituting a breach of the peace. Further, the repossession : Did not include prior notice to allow for cure or reinstatement as required by consumer protection laws. 

Was conducted in a manner inconsistent with contractual and legal obligations. 

XXXX must provide documentation of the repossession process, including confirmation that it was conducted lawfully, by licensed entities, and without breaching the peace. 

XXXX. Excessive and Unjustified Fees XXXX charged a {$600.00} repossession fee without providing an itemized breakdown of costs or evidence of reasonable expenses incurred. This fee : Exceeds the bounds of what is reasonable under the contract and applicable law. 

Violates transparency requirements for post-repossession notices under Texas law. 

XXXX must justify this fee and provide evidence of actual costs incurred during repossession. 

XXXX. Failure to XXXX XXXX and XXXX XXXX Notices The retail installment contract and consumer protection laws require the lender or servicer to issue timely and accurate notices after repossession, including details of any public or private sale of the repossessed vehicle. XXXX failed to : Provide notices within the legally required timeframe. 

Include detailed information about the sale or disposition of the vehicle, including whether it was conducted in a commercially reasonable manner. 

Notify the borrower of their right to reinstate or redeem the vehicle. 

These omissions deprived the borrower of their contractual and statutory rights. 

XXXX. Lack of Transparency in Contract Servicing Carvana LLC and XXXX have failed to clarify their respective roles and responsibilities in the assignment and servicing of the loan. This lack of transparency raises concerns about : Whether XXXX, as the servicer, was properly authorized and licensed to act on behalf of Carvana LLC. 

The role of Carvana LLC in creating or contributing to the payment delays during the borrowers hardship period. 

XXXX and Carvana LLC must disclose their contractual relationship and provide documentation to substantiate their actions in this matter.