Consumer complaint received 2023-04-18
Company: Carvana Group, LLC
State: NJ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
To whom it may concern, I was pre qualified/ Pre approved for financing on a XXXX XXXX XXXX Series priced at {$16000.00} approved for financing on XX/XX/XXXX. The process of approval was done with Carvana, monthly payments of {$380.00} and a down payment of {$5300.00}. This transaction is a consumer credit transaction with in connection to a Finance Charge. Title 15 USC 1605. 

( a ) Finance charge defined Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction. The finance charge shall not include fees and amounts imposed by third party closing agents ( including settlement agents, attorneys, and escrow and title companies ) if the creditor does not require the imposition of the charges or the services provided and does not retain the charges. Examples of charges which are included in the finance charge include any of the following types of charges which are applicable : ( 1 ) Interest, time price differential, and any amount payable under a point, discount, or other system or additional charges. 
( 2 ) Service or carrying charge.

( 3 ) Loan fee, finders fee, or similar charge.

( 4 ) Fee for an investigation or credit report.

( 5 ) Premium or other charge for any guarantee or insurance protecting the creditor against the obligors default or other credit loss. 

What is being stated here is that the finance charge in connection with a consumer credit transaction shall be determined as the Sum Of All Charges, so any charge within this consumer credit transaction is covered by the finance charge on credit due to the fact that I am going into this transaction with my Credit Card ( Social Security Number ).

The finance charge does not include charges of a type payable in a comparable cash transaction. 
On the approval application under the Total Purchase Price it clearly states Cash down payment {$5300.00} Total Due at Order {$5300.00} If the finance charge Does Not include charges of a type payable in a comparable cash transaction where does a down payment come into play? 
I was already approved for the vehicle and would like to properly receive my vehicle with in this consumer credit transaction. 

Examples of charges which are included in the finance charge include any of the following types of charges which are applicable : ( 5 ) Premium or other charge for any guarantee or insurance protecting the creditor against the obligors default or other credit loss.

Insurance or Gap Insurance should be included within the finance charge aswell.

Title 15 USC 1611 Whoever willfully and knowingly ( 1 ) gives false or inaccurate information or fails to provide information which he is required to disclose under the provisions of this subchapter or any regulation issued thereunder, ( 2 ) uses any chart or table authorized by the Bureau under section 1606 of this title in such a manner as to consistently understate the annual percentage rate determined under section 1606 ( a ) ( 1 ) ( A ) of this title, or ( 3 ) otherwise fails to comply with any requirement imposed under this subchapter, shall be fined not more than {$5000.00} or imprisoned not more than one year, or both.

Company response to consumer: Closed with explanation