Consumer complaint received 2020-05-04
Company: Santander Consumer USA Holdings Inc.
State: VA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem with paying off the loan

Complaint:
I received Santander FPB Complaint No. : XXXX response from Santander and appreciate Santanders admittance of its predatory lending practices. 

First Santander openly and knowingly is admitting the use of Simple interest method, a predatory practice, which calculates the amount of interest owed first on a daily basis as described in the response. This was not explained to me and I cant honestly say that I understand it now after you have attempted to explain it. This tactic is predatory and unfair. You took advantage of me by offering a product that was confusing and has caused the payments on this loan to extend far beyond the 6 years agreed upon which was XXXX then due to extension to XX/XX/XXXX. It is now XXXX 1 year beyond the agreed upon date and if I continue paying this as agreed it will extend into another year until XXXX 2 years beyond. This tactic is deceptive and has prevented this loan from being satisfied. 

Additionally, knowingly understanding my lack of bargaining power Santander offered terms that would likely prevent on time payments. Santander also has the habit of mailing bills that do not accurately request proper payments. Instead Santanders bills deceitfully state inflating monthly payment amounts causing fear of not being able to pay which in many cases caused a sense of helplessness which detoured payments. For example, on a recent bill dated XXXX the AMOUNT OWED per the bill for XXXX is {$5300.00}, when the actual amount owed for the month is {$430.00}. Knowing that it is impossible to pay {$5300.00} one could potentially refrain from attempting to make a payment due to the inability to pay the amount owed as stated on the bill. Santanders practice of misstating the actual amount is another indication of predatory lending practices. 

Additionally, Santander charged me for GAP insurance as a part of financing of this loan. In XXXX the Bureau of Consumer Financial Protection determined Santander violated the Consumer Financial Protection Act of XXXX when it added GAP insurance to loans without properly describing its benefits. Santander was sued over 9 million for this practice and this is another citation of its unfair, unethical and abusive lending practices. 

Finally, my contract with Santander was for 6 years with extension request for up to 6 months total. To date this 6 .5year loan is far beyond 8 years and before the loan is paid off if this can happen it will have approached 9 years. Therefore a 6 year loan totaling {$17000.00} will have accrues interest and additional charges for over 29,000 which is 2.5 times the principle balance of the original loan agreement. This is abusive and unacceptable. As you already know Santander is facing a class action lawsuit for charging improper fees and for improper telephone tactics which again clearly highlights my victimization by Santander. 

I am requesting a refund in the amount of {$10000.00} which include excessive fees and interest incurred and Santanders repeated 32attempt to take advantage of this subprime borrower.

Company response to consumer: Closed with explanation