Consumer complaint received 2020-11-04
Company: Santander Consumer USA Holdings Inc.
State: WA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
On XX/XX/XXXX, I visited XXXX XXXX XXXX, XXXX XXXX  XXXX, XXXX, WA XXXX after receiving a call from XXXX, a salesman with XXXX XXXX XXXX, he verbally assured me with great confidence he could get me financed with no money down. I went to lot on XXXX XXXX, XXXX. I was first customer to arrive at XXXX. XXXX arrived around XXXX, and directed me to 2 vehicles I could possibly get with financing. A XXXX XXXX, and a XXXX XXXX XXXX. Neither vehicle had any pricing on vehicle as required by law, and I asked about the XXXX. After test drive I asked if he could check financing on that vehicle. I was fairly desperate for a car, and he knew that because I stated it several times. At no point in the next 8 hours was I informed of price, financing etc, as he helped many other customers with sales of new XXXX vehicles. I had no discussion on price because I was not confident I would get a loan. Approximately 9 hours into visit is when he came with an offer of $ XXXX  month, and a strange system of showing a down payment. I stated I could not pay that much, and he disappeared again for 30 mins. He brought down a slip of paper that was hand written showing price of {$19000.00}, plus all the fees etc. Payment of $ XXXX month which I agreed to and he went to get financing. He never asked for income verification and stated he would use " what I had used for last vehicle financing several years earlier at different location. When he returned he stated the need for a down payment and said that the dealer would carry an promissory note for {$1600.00}, and asked if I could come up with any more. I again stated no. A few minutes went past and he returned stating he received approval from Santander Consumer USA for the loan. I asked about the financing and down payment and he said finance department was working on paperwork. He stated that the down payment would show as {$3200.00}, I questioned it and he stated something to the fact that the bank had agreed to carry some down payment. I did not understand what that meant. Upon meeting with the Finance gentleman to sign documents, I saw that the price for vehicle was now {$20000.00}, financed would cost {$38000.00} over 72 months, but Finance manager stated " after 1 year of payments you can refinance payments down to {$240.00} or less. I signed all documents and questioned GAP insurance at {$900.00}, finance stated that was required for this loan. I finished signing and finally left dealership after 10 or more hours with vehicle. Prior to leaving I had to provide proof of full coverage, I borrowed money from my friend whom was present for much of the discussions, and finally left. Upon further research I found the vehicle was previously a rental car from XXXX, which was not disclosed, vehicle was sold to lot for {$14000.00} in a auction, and at time of purchase highest XXXX XXXX price on that base model should have been {$16000.00}, which stated {$1200.00} deduction is for it previously being a rental. I searched over the loan contract and asked consulted an attorney and was told what the dealer did was take the other {$1600.00} for the down payment and dropped it on top of the loan from Santander, at 23 % interest. After 6 months during this CoronaVirus I decided to file a Complaint with WA Attorney General Office. Both parties denied any wrong doings and sent it back to WA XXXX. It was then I discovered the Settlement by Santander Consumer for XXXX states and XXXX XXXX dollars. After much research I determined everything that transpired on this loan was exactly why they were sued, but my loan was written 4 days after dates published to be included. I had paid the dealer {$400.00} towards the down payment they carried, and stopped once I realized the fraudulent down payment, and no verification of income or residency, or ability to pay. I made a Gross income of {$21000.00} in XXXX, and with living expenses and loan, and bills, insurance etc I would be in a negative debt to income ratio of about 150 %. This was never considered or discussed at dealer and they should have never extended financing and the only way they were able to is fraudulently. I have at least three witnesses that are willing to prepare sworn statements about me stating many times that I did not have any money down, the Santander settlement confirmed my belief that I was dealt with fraudulently and against the laws of USA for Predatory Lending. 

After further investigation I have found that XXXX XXXX XXXX has another company called XXXX XXXX XXXX XXXX XXXX XXXX, WA XXXX this name appears on certain documents of transaction, but I was purchasing from XXXX XXXX XXXX, and never told anything but that.

Company response to consumer: Closed with explanation