Consumer complaint received 2021-09-22
Company: CAPITAL ONE FINANCIAL CORPORATION
State: TX
Product: Debt collection
Sub-product: Auto debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
On XX/XX/XXXX I entered into fraudulent contract with CAPITAL ONE AUTO FINANCE. I went to purchase a vehicle for personal, family, and household purpose at XXXX XXXX XXXX XXXX XXXX XXXX. My credit was pulled ( 3 ) times by CAPITAL ONE AUTO FINANCE. I didn't consent for CAPITAL ONE AUTO FINANCE to pull my credit multiple times. I had already gotten a pre-approval from CAPITAL ONE AUTO FINANCE in the amount of {$63000.00} so my credit didn't need to be pulled multiple times. Going over the Retail Instalment Agreement I noticed that there was fraud on the contract. The contract stated the Finance Charge is {$10000.00} which according to Truth In Lending Act the finance charge should cover the all fees. On the contract it states " The dollar amount the credit will cost you. '' so with that being said the car was paid for and should be free of all liens. I XXXX  : XXXX the natural living woman is not obligated to make payments to CAPITAL ONE AUTO FINANCE because the vehicle is already paid for. CAPITAL ONE AUTO FINANCE never gave me notice that I had a right recession or a right to cancel. CAPITAL ONE AUTO FINANCE fraudulently created a contract to undermined the Consumer which would be me XXXX : XXXX the natural living woman. As soon as I found the contract to be fraud I sent CAPITAL ONE AUTO FINANCE a fomal letter of my Notice of Recession dated XX/XX/XXXX via Certified Mail Receipt XXXX XXXX XXXX XXXX XXXX , which CAPITAL ONE AUTO FINANCE received XX/XX/XXXX. I have not heard anything from CAPITAL ONE AUTO FINANCE regarding my notice. I call CAPITAL ONE AUTO FINANCE on XX/XX/XXXX and spoke to ( 2 ) different customer service representivies ( ID numbers XXXX and XXXX ) and no one could tell me anything about the notice that I sent or my rights under the Federal Law. I told the representive ( badge number XXXX ) That I was not obigated to make any payments because the vehicle was paid for and she stated that I didnt have a right to recession. Purssant to the provisions of The Truth in Lending Act 15 U.S.C. Section 1635 I the Consumer indeed have the right to resind any transaction if there is a finance charge. CAPITAL ONE AUTO FINANCE has not sent me anything regarding my Notice of Right to Recession. 
15 U.S. Code 1601- Congressional findings and declaration of purpose ( a ) Informed use of credit The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices. 
( b ) Terms of personal property leases The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements. 
15 U.S. Code 1602 - Definitions and rules of construction ( a ) The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter. 
( b ) Bureau. 
The term Bureau means the Bureau of Consumer Financial Protection. 
( c ) The term Board refers to the Board of Governors of the Federal Reserve System. 
( d ) The term organization means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association. 
( e ) The term person means a natural person or an organization. 
( f ) The term credit means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment. 
( g ) The term creditor refers only to a person who both ( 1 ) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and ( 2 ) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under part D of this subchapter and sections 1637 ( a ) ( 5 ), 1637 ( a ) ( 6 ), 1637 ( a ) ( 7 ), 1637 ( b ) ( 1 ), 1637 ( b ) ( 2 ), 1637 ( b ) ( 3 ), 1637 ( b ) ( 8 ), and 1637 ( b ) ( 10 ) of this title, the term creditor shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Bureau shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. Any person who originates 2 or more mortgages referred to in subsection ( aa ) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this subchapter. The term creditor includes a private educational lender ( as that term is defined in section 1650 of this title ) for purposes of this subchapter. 
( h ) The term credit sale refers to any sale in which the seller is a creditor. The term includes any contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the property and services involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the property upon full compliance with his obligations under the contract. 
( i ) The adjective consumer, used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes. 
15 U.S. Code 1635 - Right of rescission as to certain transactions ( a ) Disclosure of obligors right to rescind Except as otherwise provided in this section, in the case of any consumer credit transaction ( including opening or increasing the credit limit for an open end credit plan ) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this subchapter, whichever is later, by notifying the creditor, in accordance with regulations of the Bureau, of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Bureau, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Bureau, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section. 
( b ) Return of money or property following rescission When an obligor exercises his right to rescind under subsection ( a ), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditors obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court. 
( c ) Rebuttable presumption of delivery of required disclosures Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter by a person to whom information, forms, and a statement is required to be given pursuant to this section does no more than create a rebuttable presumption of delivery thereof. 
( d ) Modification and waiver of rights The Bureau may, if it finds that such action is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of any rights created under this section to the extent and under the circumstances set forth in those regulations. 
( e ) Exempted transactions ; reapplication of provisions This section does not apply to ( 1 ) a residential mortgage transaction as defined in section 1602 ( w ) [ 1 ] of this title ; ( 2 ) a transaction which constitutes a refinancing or consolidation ( with no new advances ) of the principal balance then due and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest in the same property ; ( 3 ) a transaction in which an agency of a State is the creditor; or ( 4 ) advances under a preexisting open end credit plan if a security interest has already been retained or acquired and such advances are in accordance with a previously established credit limit for such plan. 
( f ) Time limit for exercise of right An obligors right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any other disclosures required under this part have not been delivered to the obligor, except that if ( 1 ) any agency empowered to enforce the provisions of this subchapter institutes a proceeding to enforce the provisions of this section within three years after the date of consummation of the transaction, ( 2 ) such agency finds a violation of this section, and ( 3 ) the obligors right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligors right of rescission shall expire three years after the date of consummation of the transaction or upon the earlier sale of the property, or upon the expiration of one year following the conclusion of the proceeding, or any judicial review or period for judicial review thereof, whichever is later. 
( g ) Additional relief In any action in which it is determined that a creditor has violated this section, in addition to rescission the court may award relief under section 1640 of this title for violations of this subchapter not relating to the right to rescind.

Company response to consumer: Closed with explanation