Consumer complaint received 2020-04-06
Company: Santander Consumer USA Holdings Inc.
State: DC
Product: Debt collection
Sub-product: Auto debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
Hello CFPB, Please help! 

In short : I was never notified by Santander Bank that a car loan I cosigned was not paid. As you know, under current law the bank was required to notify me if there was any debt that I am co-responsible for that is not being paid. I would have been happy to help pay this debt, but I was never told. Never. And despite repeated requests Santander Bank has been unable to show me that they ever notified me. As a result, a negative credit action has been made on my report. I have asked Santander Bank to remove it and I will concurrently repay any debt owed. I'm happy to, but they must agree to remove this negative action from my credit report, as I was never aware of it. Again Santander Bank never notified me that any debt was owed, as they are required to do so under the Dodd-Frank Act. 

CFPB : I ask that you please require Santander Bank to request of the credit agencies to remove the negative collection action on my credit report and I will happily pay any debt owed to Santander Bank by my co-signer to the car loan. Seems like a pretty reasonable request and it's the law! I am unable to get a home loan because of this unscrupulous action by Santander Bank. Please help!! 



More Background ( see attached as well ) : I cosigned a car loan for a friend of mine back in XXXX of XXXX. My friend, unbeknownst to me, was unable to make his car payments in XXXX and the bank in question, Santander Consumer USA, reported a debt collection on my credit and NEVER notified me. I have asked Santander to prove they tried to notify me and they have been unable to do so. They are required to notify me under the Dodd-Frank bill of impending debt reporting. 

I would have been happy to pay off the car loan if they had reached out! In fact, in the past Santander has called me a couple times when my friend missed a monthly payment, and I was able to call him and have the payment sent to them immediately. They have my phone number and address. If I was told by Santander that there was a problem I would have handled it, after all, that's the purpose of a cosigner. Unfortunately Santander rushed to report an unpaid debt and collection on my credit report, which is the first time I found out I had a debt collection!!! I was in the midst of buying a house and I was denied the loan because of the debt collection that I had no idea of. I immediately called Santander and offered to pay the debt off. The only thing I asked, and still am asking, is that because they never, not once, notified me that a debt was owed and was going to collections, that they request it to be removed from my credit report. Unfortunately Santander has refused, even if I repay the debt, to request of the credit rating agencies that it be removed from my credit report as a mistake. Please help me! Having this collection on my credit report has grossly affected my ability to get a home loan build wealth and I have incurred immense legal fees. I have hired a lawyer, who has sent them repeated requests citing the notification laws, asking them to own up to their mistake and ask the credit rating agencies to remove the debt from my credit report as a mistake. If they do this I am happy to pay the debt, I'll pay it tomorrow! But if they are unwilling to have the negative action removed from my credit report I can not in good conscious let a bank, Santander, get away with screwing me and my credit when it was their fault that they did not notify me. Santander has not been able to show any proof that they sent me any notification, despite multiple requests to do so from my lawyer. I have attached the letters from my lawyer to them making this request and citing the law that they had to notify me before reporting a negative action. Please help me fight against this bank and make things right!

Company response to consumer: Closed with explanation