Consumer complaint received 2023-03-03
Company: CREDIT ACCEPTANCE CORPORATION
State: LA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
On XX/XX/2020, I went to XXXX XXXX XXXX located in XXXX, LA to purchase a vehicle. Upon being allegedly approved, I was advised that I had to put a deposit of {$4500.00} in order to drive the vehicle off the lot. XXXX XXXX is in violation of multiple federal and state violations and non-compliance matters regarding the automobile consumer credit transaction contract between XXXX XXXX XXXX and XXXX XXXX XXXX regarding the XXXX XXXX XXXX. 

Infringements pertaining to the CFPB 1026.4 Finance Charge Non-Compliance of Truth in Lending Act ( TILA ) 15 U.S.Code 1601 et seq Federal Law/ Violations of Regulation Z- Federal Reserve Regulation.

Violation of the United States Code 1605 ( c ) Determination of Finance Charge.

Non-Compliance of 1026.23 ( a ) Consumer 's Right to Rescind ( b ) ( 1 ) Notice of Right to Rescind Violation of 12 CFR 226.4 ( a ) Finance Charge ( d ) Written Disclosure of Total Premium Costs Non-Compliance of FCRA, an amendment of Truth in Lending Act ( TILA ) Per The Electronic Code of Federal Regulations ( eCFR ) 226.4 1026.4 Finance Charge A. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparison cash transaction. It CAN NOT be cash and credit. 

XXXX XXXX XXXX violated the regulation by illegally charging a cash down payment in the amount of {$4500.00} and allegedly granted XXXX XXXX XXXX ( the consumer ) an extension of credit. Accepting cash in a consumer credit transaction is a violation. ( REFER TO THE CANARY COPY OF THE TILA LOAN DOCUMENT ), which I did not receive. 

XXXX XXXX Failed to give me the proper disclosures, I never received the consumers Right to Rescind Disclosures.

In a consumer transaction subject to rescission, a creditor shall deliver two copies of the notice of the Right to Rescind to each consumer entitled to rescind ( one copy to each if the notice is delivered in electronic form in accordance with the consumer consent and other applicable provisions of the E-Sign Act ).

The notice shall be on a separate document that identifies the transaction and shall clearly and conspicuously disclose the following : Offical interpretation of 23 ( b ) ( 1 ) Notice of Right To Rescind ( ii ) The consumer 's right to rescind the transaction.

( iii ) How to exercise the right to rescind, with a form for that purpose, designating the address of the creditor 's place of business.

( iv ) The effects of rescission, as described in paragraph ( d ) of this section.

( v ) The date the rescission period expires.

( 2 ) Proper form of notice. To satisfy the disclosure requirements of paragraph ( b ) ( 1 ) of this section, the creditor shall provide the appropriate model form in appendix H of this part or a substantially similar notice. 

XXXX XXXX XXXX failed to provide me with ANY written disclosures pertaining to my right to rescind within a certain time frame. 

My main complaint is the violation of TILA Determination of Finance charge can not be cash and credit. I was charged an illegal down payment of {$4500.00} related to this consumer credit transaction. 

I have reached out to XXXX XXXX XXXX several times with a Notice of Dispute and an Affidavit of Truth in which they did not respond to either documents.

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