Consumer complaint received 2023-01-05
Company: CREDIT ACCEPTANCE CORPORATION
State: NJ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem while selling or giving up the vehicle

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX NJ XXXX Re : XXXX XXXX XXXX # XXXX Re : Vehicle Service Contract # XXXX Subj : Rescission of contract To whom this may concern, The point of this letter is to rescind my contract with you. This contract is full of fraud and is missing information that is required for discloser. There are too many violations in this contract. Below will be codes thats you knowingly violated and/or violated out of neglect. Giving me legal grounds to rescind this contract. As I stated I wish to rescind and refund my down payment of {$3000.00}. You can understand the definition to the underlines by clicking them 15 USC 6802/6803 15 USC 1605 15 USC 1635/12 CFR 226.15/12 CFR 1026.15 12 CFR 226.15 12 CFR 226.15 states ( a ) each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind : each credit extension made under the plan ; the plan when the plan is opened ; a security interest when added or increased to secure an existing plan ; and the increase when a credit limit on the plan is increased.

( ii ) - ( 3 ) The consumer may exercise the right to rescind until midnight of the third business day following the occurrence described in paragraph ( a ) ( 1 ) of this section that gave rise to the right of rescission, delivery of the notice required by paragraph ( b ) of this section, or delivery of all material disclosures, 36 whichever occurs last. If the required notice and material disclosures are not delivered, the right to rescind shall expire 3 years after the occurrence giving rise to the right of rescission, or upon transfer of all of the consumer 's interest in the property, or upon sale of the property, whichever occurs first. In the case of certain administrative proceedings, the rescission period shall be extended in accordance with section 125 ( f ) of the Act.

The term material disclosures means the information that must be provided to satisfy the requirements in 226.6 with regard to the method of determining the finance charge and the balance upon which a finance charge will be imposed In any transaction or occurrence subject to rescission, a creditor shall deliver two copies of the notice of the right to rescind to each consumer entitled to rescind ( one copy to each if the notice is delivered in electronic form in accordance with the consumer consent and other applicable provisions of the E-Sign Act ). The notice shall identify the transaction or occurrence and clearly and conspicuously disclose the following : ( 1 ) The retention or acquisition of a security interest in the consumer 's principal dwelling.

( 2 ) The consumer 's right to rescind, ( 3 ) How to exercise the right to rescind, with a form for that purpose, designating the address of the creditor 's place of business.

( 4 ) The effects of rescission, ( 5 ) The date the rescission period expires.

15 USC 1635 ( a ) 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.

I/We were not provided with any notice of the right to rescind, the date until I have the right to rescind or with the form on how to exercise that right. Nor was I informed verbally that we had the right.

15 USC 1605 ( a ) Finance charge defined 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.

( 6 ) Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender ( for delivery to the broker ) whether such fees are paid in cash or financed.

( b ) Life, accident, or health insurance premiums included in finance charge charges or premiums for credit life, accident, or health insurance written in connection with any consumer credit transaction shall be included in the finance charges unless ( 1 ) The coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit, and this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit ; and ( 2 ) In order to obtain the insurance in connection with the extension of credit, the person to whom the credit is extended must give specific affirmative written indication of his desire to do so after written disclosure to him of the cost thereof.

( c ) Property damage and liability insurance premiums included in finance charge Charges or premiums for insurance, written in connection with any consumer credit transaction, against loss of or damage to property or against liability arising out of the ownership or use of property, shall be included in the finance charge unless a clear and specific statement in writing is furnished by the creditor to the person to whom the credit is extended, setting forth the cost of the insurance if obtained from or through the creditor, and stating that the person to whom the credit is extended may choose the person through which the insurance is to be obtained.

finance charge Information required by this subchapter shall be disclosed clearly and conspicuously, in accordance with regulations of the Bureau. The terms annual percentage rate and finance charge shall be disclosed more conspicuously than other terms, data, or information provided in connection with a transaction, except information relating to the identity of the creditor.

I/we were not disclosed clearly and conspicuously of our finance charge. When asked, I was told that itemization of amount financed was it. Which is not. Itemization of amount financed is a breakdown after the finance charge. Also, the finance charge is not correct. It states that the finance charge is XXXX when it should be more because as shown above his insurance/gap insurance ( XXXX ) and warranty ( XXXX ) is supposed to be included in finance charge bring it to at least XXXX. 

15 USC 6803 Finance institutions have requirements under law on how to disclose consumer nonpublic personal information and format to do so. Those steps were not followed. ( a ) States At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear and conspicuous disclosure to such consumer, in writing or in electronic form or other form. On that form it must have ( 1 ) the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution. ( 2 ) the categories of persons to whom the information is or may be disclosed, other than the persons to whom the information may be provided. ( 3 ) the categories of nonpublic personal information that are collected by the financial institution. ( 4 ) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information.

The model form should be comprehensible to consumers, with a clear format and design ; provide for clear and conspicuous disclosures ; enable consumers easily to identify the sharing practices of a financial institution and to compare privacy practices among financial institutions ; and be succinct, and use an easily readable type font.

15 USC 6802 States a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice.

A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and the consumer is given an explanation of how the consumer can exercise that nondisclosure option.

I/We were not given any form that would meet those requirements.

When an obligor exercises his right to rescind, 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, down payment, 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.

Where the creditor fails to provide the consumer with a designated address for sending the notification of rescission, delivery of the notification to the person or address to which the consumer has been directed to send payments constitutes delivery to the creditor or assignee. State law determines whether delivery of the notification to a third party other than the person to whom payments are made is delivery to the creditor or assignee, in the case where the creditor fails to designate an address for sending the notification of rescission.

To exercise the right to rescind, the consumer shall notify the creditor of the rescission by mail, telegram, or other means of written communication. Notice is considered given when mailed, or when filed for telegraphic transmission, or, if sent by other means, when delivered to the creditors designated place of business. 





By XXXX XXXX  XXXX Signature __XXXX XXXX XXXX__ By XXXX XXXX XXXX Signature__XXXX XXXX XXXX_

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation