Consumer complaint received 2019-10-09
Company: CAPITAL ONE FINANCIAL CORPORATION
State: NY
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Struggling to pay your loan
Sub-issue: Loan balance remaining after the vehicle is repossessed and sold

Complaint:
My vehicle ( a XXXX XXXX XXXX  XXXX ), was repossessed 2 days before XXXX XXXX. This occurred after I repetitively sent letters to capital one indicating financial hardship due to automobile accident involving the seat belt and brake component of the vehicle and that the above vehicle was involved in a National recall for model years XXXX to XXXX. 
I also notified Capital one that I have obtained a lawyer to assist me due to the fact the manufacturer at that time was not able to fix the issue until sometime the next year and this along with a faulty engine qualifies the vehicle as a lemon. 
After realizing that the vehicle was repossessed, I immediately logged into the online portal. Upon indebt review of the account, I saw that of the original loan amount of {$27000.00}, I had a paid to date total of {$33000.00}, and of the {$33000.00} that was paid {$20000.00} was applied to interest and only {$12000.00} applied to the principal. 
At no time upon accepting the auto loan with Capital one was I informed or notified that majority of payments would be applied to interest as opposed to the principal. Additionally there was an exorbitant amount of fees and charges being applied to the account in addition to reporting of late payments and repossession when there was none thus negatively impacting my credit score and history. Also at the initiation of the loan I was informed of an added bonus of Gap coverage for the vehicle since it was a brand new vehicle, to which I learned was never included at the time of engine failure in XXXX which required a brand new engine. 
Capital one sent a letter dated XX/XX/XXXX which stated the vehicle will be sold after XX/XX/XXXX. About 2 weeks after I received a call from Capital one stating the vehicle was sold. When I requested the amount that the vehicle was sold for the representative declined to disclose that information. Fast forward to this year and review of my credit report I see that capital one had continued to report to all credit reporting agencies that I had an active auto loan the was months past due and horrifically reflected a balance as if the vehicle was still in my possession. There was also a failure on Capital One 's behalf to report the $ XXXX that was already paid to them in addition to the {$2700.00} that was paid to them on XX/XX/XXXX, which would have a ) brought my account current and b ) prevented the repossession from ever occurring. Lastly, in XXXX of XXXX I applied for economic hardship which would allow for lower payments to be made for a certain number of months not to exceed 12 months. However when approval was obtained the monthly payments was lowered slightly from {$630.00} a month to {$550.00} a month with a additional charge for notifying the lender of hardship and approval for lowered payments thus extending the loan term from 72 months at XXXX/monthly to 96 months at $ XXXX/monthly!!! 
In summary, Capital One Auto finance uses deceptive marketing and financial practices when dealing with individuals with less than optimum credit and most disheartening they use predatory lending practices in the form of interest rates such as mine which was 26.98 %. 
Applying that high interest rate to monthly payments and late payments thus padding overall charges leading to inability to remain current with payments. The subsequent repossession of this vehicle also served as a removal of evidence for the lawsuit that was initiated for defects that XXXX XXXX XXXX admitted to not having a resolution for and in a email to me indicating that the company would reimburse me for renting a vehicle on a monthly basis due to the open recall whilst still liable for loan payments to Capital one. Thus ensuring there was no tangible evidence within my possession in the form of the vehicle to produce to investigators and lawyers.

Company response to consumer: Closed with explanation