Consumer complaint received 2019-09-30
Company: FC HoldCo LLC
State: TX
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Credit inquiries on your report that you don't recognize

Complaint:
On XX/XX/XXXX I went to XXXX XXXX XXXX to purchase a used XXXX XXXX XXXX. Vehicle was priced at {$12000.00} with XXXX miles. I had originally spoke with salesperson XXXX XXXX XXXX, but he was out sick. So, Mrs. XXXX XXXX took over the sale. I informed XXXX of my budget of about {$12000.00} with a monthly payment of {$280.00}. I also was trading in my XXXX XXXX XXXX and was Pre-Approved with XXXX XXXX XXXX XXXX for {$35000.00} with interest APR of 15 %. So, after that Mrs. XXXX took some information from me regarding pay-off amount with current lender and account information. She also disclosed XXXX XXXX for my vehicle and purchase vehicle. She told me that my car had been involved in two accidents and the odometer reading had been changed on my vehicle. I informed her that I knew about two accidents, but my odometer reading was correct. She stated that this could be an issued in the amount of money I would receive for my trade in. So, she went to talk to her Pre-owned Sales Manager, XXXX XXXX. When XXXX sit down with me, I explained this was a mistake with odometer reading and I would call Dealership in Louisiana to get the matter corrected he agreed it would take 60 days to update on Car Fax Report. So, he offered me {$4500.00} on my car. I declined offer and he came back with {$5800.00}. Which was the amount to pay off vehicle. He stated this was the best offer he could give me. ( Note : My car with the current mileage could sale for {$10000.00} to 12,000 in good shape ). He was just trying to underpay me for my trade-in. I also informed XXXX I did not want the XXXX XXXX {$250.00} and XXXX {$490.00}. coverages and asked why I had to pay for something the dealership did to vehicle prior to me purchasing it. He stated that I had to get coverage and it was not the optional. 

So, after he left XXXX came back with numbers regarding monthly payment and other fees for XXXX XXXX {$250.00} and XXXX {$490.00}. I explained that I did not want these services and asked why I had to pay for something the dealership did to vehicle when they acquired the vehicle. She kept insisting that I had to take services and that I could not refuse them. Then she introduces me to the finance guy XXXX. He sits at XXXX desk and I asked him about the two charges for services. He stated that I had to get them if I wanted to purchase vehicle and that it was not optional. XXXX also told me that my XXXX XXXX rate was too high and advised me to let him contact some other banks to get a lower interest and he also asked for my SSN Card. Flagship Credit Acceptance was the only financing option he was trying to use. He never contacted any other bank for financing. I explained I did not have my SSN card and asked why he needed it. He said I had a credit freeze with one of the credit bureaus. But if I didnt have it with me, it was ok. So, he left me sitting at the desk for about 30 to 40 minutes. When we finally got to his office, he showed me the option on services with different monthly payment options. He stated I needed to get extended warranty on vehicle for {$3600.00}, but he would put in a discount code for {$1600.00} and the Flagship Credit Acceptance finance company required it for loan. Which was lie. XXXX XXXX XXXX Offer Summary advised against extended warranty, due to amount of mileage already on vehicle. He also included a gap insurance policy for {$800.00}. This was more than my original lender, or any creditable auto financing company would have approved for a used vehicle. In addition, I told XXXX that I did not want these services, but he kept trying to persuade me I needed them. Which added an additional {$4000.00} to finance amount bringing the finance amount to {$16000.00}. XXXX XXXX Offer Summary stated that this GAP policy was too high for vehicle and advise not to purchase the gap insurance at all. ( Note I didnt have Offer Summary with me at the time, because I could not print it. ) In addition, XXXX XXXX was offering me different interest rates depending on vehicle. The interest rate was actually 11.79 APR or 12 % for this vehicle and credit score. I initially thought my interest rate with XXXX XXXX was 15 %, but it was actually 11.79 %. 
So, XXXX the finance person told me that I was getting a better rate with Flagship Credit Acceptance ( 14.59 % APR ). Which was a complete lie. He wanted me to go with their third-party financing company in order to secure financing for an overpriced Gap protection, extended warranty, XXXX XXXX, XXXX XXXX XXXX, a bigger commission for using this financing company. He knew that XXXX XXXX would never have financed this deal full of red flags. On top of that he had me sign many of documents with a pen pad and I was never shown actual documents. 
For example, documents like the Law 553-TX-ARB-eps-14 4/18 with annual percentage rate, finance charge, amount financed, and total of payments, and total sale price he never explained the amount being financed or the final payoff amounts. In addition, there was also a Final Aceeptance Form, Complete Theft Warranty Registration, Mechanical Failure Service Contract regarding XXXX XXXX, GAP, Extended Warranty, XXXX which stated that these services were optional and that there is no requirement to purchase any of these coverages in order to obtain financing he never showed me. He waited until to the last minute to provide me with paperwork packet and stuffed them in a white envelope. I never saw these documents at all. Had I seen these documents, I would have left dealership immediately. After everything was said and done, I would have owed a total of {$24000.00}. 00 on a  vehicle that was not worth it. Nothing was explained to me regarding any of the paper work. XXXX just kept rushing me to sign documents using pen pad and never showed me important documents. Then when everything was done. They told me I could NOT take vehicle home because they were putting new tires on it. I was told I should return in the morning to pick up vehicle. So, the dealership provided me with a rental vehicle. This vehicle was a Mini Coupe and nothing like my car. I left the dealership and brought the paper work to my husband to review. I had a bad feeling about what had just taken place and I knew something was not right with the treatment I received. So, I left the paper work with my husband and left to run errands in the area. Before I could leave the parking lot, he called me angry and very upset. He told me he was calling dealership to speak with XXXX about how they had taken advantage of me and requested that he return my vehicle. He also informed them I would be returning rental car immediately. 
My husband told XXXX that the GAP insurance, extended warranty, XXXX, XXXX, and financing was predatory lending. He explained to XXXX what XXXX had done regarding financing and not providing me with all documentation to review. He told XXXX to return my vehicle to me and unwind the deal, and that he was filing a complaint with OCCC. Mr. XXXX stated that he would not return my vehicle at first. But then my husband told him that I never took possession of vehicle and I had just left the dealership about 30 minutes ago with a loaner car. So, I personally called dealership and spoke with XXXX and informed her I was coming to get my vehicle and to unwind the deal and to inform XXXX of my decision. She told me that I could come and pick up my vehicle. The whole time I was on the phone with her, she kept inquiring what the problem was. I explained I wasnt happy with the predatory lending practices, being lied to, and over charged for services I did not want or need. When I arrived at the dealership my car was parked in front with both of my license plates taken off and thrown on the floor in my car. I entered dealership and asked receptionist to speak with XXXX, he never came to front to meet me. He sent Mr. XXXX to give me my keys and took the keys for the rental. I asked XXXX for the contract and to shred it. He went to Finance office and got paper work from XXXX and put it in a lock box to be shredded. I called my lender and advised XXXX XXXX to reject a payoff attempt by XXXX XXXX and Flagship Credit Acceptance and that I did not authorize sale on XX/XX/XXXX. I also advised them the deal was unwind, due predatory lending, falsified documentation, warranty misrepresentation, and due to the fact, that I did not take possession of vechile on XX/XX/XXXX. On XX/XX/XXXX I called Flagship Credit Acceptance to advise them of the unwind contract and to inquiry about credit application. Representative informed me that they never received application for credit on my behalf and if they to void it. I also told her I would be disputing inquiries with the three major credit bureaus. Also my husband called dealership on XX/XX/XXXX and XX/XX/XXXX to talk to owner. Receptionist stated he wasn't in or he was in a meeting, but took down his name and contact info. He never heard from owner. 

Types of Auto Dealer Fraud I experienced : Inflating the total purchase price above the invoice or sticker price, such as by concealing options the consumer did not request, or by including other unapproved and undisclosed fees. 
Falsely stating that optional features are required. 
Undervaluing or underpaying for a consumers trade-in vehicle. 
Representing that new or used vehicle has features or options that it does not have. 
Claiming that a warranty offers protections that it does not offer, or falsely representing an extended service contract as an extended warranty. ( Gap Insurance for {$800.00}, {$1600.00} extended warranty, {$250.00} XXXX XXXX, and {$490.00} XXXX XXXX   XXXX  ) Misrepresenting a consumers credit score or eligibility for financing in order to get him or her to agree to a higher interest rate or other unfavorable terms. 
Providing additional insurance policy on vehicle when insurance was already available and verified. 


Resolution : I would like them to remove inquires off credit report, administrative penalties, restitution, license suspensions, and be audited for every sale completed this year at dealership.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation