Consumer complaint received 2021-07-17
Company: Mercedes Benz Financial Services
State: MA
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
I want to require Mercedes-Benz Financial Services to verify account XXXX and send me proof that they used their own funds when extending my credit to pay for the XXXX XXXX  XXXX XXXX. I demand proof, not the contract, I demand proof that they paid for my property with their own funds, I want a receipt for said transaction. Because I spoke to them and their agent alleges that they paid for the property with their funds. I want reliable evidence. I also spoke with the manager of the XXXX XXXX dealer and he claims in a recorded call from them that you paid for my property with your own funds, your own credit. His representative corrected me that they paid for the property with their own credit and with their own funds. If this is so, I demand that the credit transaction be verified, not the contract, the credit transaction that shows that they used their credit or their funds to pay for my property THE BANK CAN NOT LOAN CREDIT Law of Truthfulness in Loans, Jurisprudence and Regulation Z The Truth in Lending Act was passed to prevent unsophisticated consumers from being misled as to the total cost of financing. Truth in Lending Act, Section 102, 15 U.S.C. Section 1601. Griggs v. Provident Consumer Discount. 680 F.2d 927, certiorari granted, annulled 103 S.Ct. 400, 459 U.S. 56, 74 L.Ed.2d 225, in return 699 F.2d 642.

" In federal courts, it is well established that a n
ational bank is not empowered to lend its credit to another by becoming a guarantor, guarantor or guarantor for it. '' Farmers and Miners Bank v. Bluefield Nat'l Bank, 11 F 2d 83, 271 U.S. 669.
" A national bank has no power to lend its credit to any person or corporation. '' Bowen v. Needles Nat. Bank, 94 F 925, 36 CCA 553, certiorari denied at 20 S.Ct 1024, 176 US 682, 44 LED 637.

" It has been established beyond all controversy that a national bank, by virtue of federal law that limits its powers and capacity, can not lend its credit by guaranteeing the debts of another. All contracts of this type entered into by its officials are ultra vires " Howard & Foster Co. v. Citizens Nat'l Bank of Union, 133 SC 202, 130 SE 759 ( 1926 ). 
" It is not within those statutory powers that a national bank, even if it is solvent, lends its credit to another in any of the various ways in which it could be done. '' Federal Intermediate Credit Bank v. L 'Herrison , 33 F 2d 841, 842 ( 1929 ).

" A bank can lend its money, but not its credit. '' First Nat 'I Bank of Tallapoosa v. Monroe , 135 Ga 614, 69 SE 1124, 32 LRA ( NS ) 550. " ... the bank is authorized to lend money as per
sonal guarantee ; but it must be money what it lends, not its credit. '' Seligman v. Charlottesville Nat. Bank, 3 Hughes 647, Fed Case No. 12, 642, 1039.

" The contract is void if it is only partly connected with the illegal transaction and the sole or complete promise. '' Guardian Agency v. Mutual Guardian. Savings Bank, 227 Wis 550, 279 NW 83.
" Banking associations, by the very nature of their activity, are prohibited from lending credit. '' St. Louis Savings Bank vs. Parmalee 95 U. S. 557

Company response to consumer: Closed with explanation