Consumer complaint received 2017-12-21
Company: Santander Consumer USA Holdings Inc.
State: NJ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
Santander is not operating fairly. In XXXX XXXX, I submitted a payment in the amount of {$360.00}. At the time, my payments were current. The entire payment was applied towards interest. I spoke to several representatives who attempted to justify why my entire payment was applied towards interest. Each representative implied that because I last submitted a payment in XXXX, interest accrues daily, thus the payment submitted in XXXX, as per Santander, was justifiably submitted towards interest. That may be their reason, however it is not justified. In XXXX, two partial payments were submitted in the month of XXXX to satisfy the payment for the month. As I was one payment ahead at the time, my next payment was not due until XXXX. Additionally, Santander claims that interest accrues daily and when payments are late additional interest builds between payments. This is what I do n't understand and none of this in explained in my contract ( please review ). How is it legal for a finance company to demand additional money other than what is stated in the contract? Late fees should be applied to late payments ; not additional interest that exceeds what in noted on the contract. Previously Santander responded that payments submitted in advance reduces the interest, apparently, this is not the case. 

My second complaint is I have a statement which reports my principal balance as {$8500.00}. However, after reviewing my credit report ( XXXX ), Santander falsely reported that I owed {$9200.00} - an increase to what I previously owed. This information greatly hurt my credit score. How and why are they able to do this? 

This contract with Santander has placed me in dire straits. I can not continue to pay for a car when the balance never goes down. The maturity date listed on my billing state is : XXXX XXXX, XXXX. However, given the amount of the principle balance, ( at {$360.00} per payment ) I am obligated to payment 23 additional payments - close to two years of additional payments and the car was financed in XXXX of XXXX? 
This can not be legal. 

Yes, late payments were submitted during the loan period. However, prior to now my payments were on time. Why does a XXXX dollar corporation ride on the backs of individuals who are put at their mercy to get approved for a loan? So is it fair to say that as long as late payments are submitted, Santander is able to apply additional money on the loan? I need answers. 

This is my ******SECOND COMPLAINT****** Please note, as of XXXX XXXX, XXXX, my principal balance, as notated on Santander 's payment ledger was {$9100.00}. As of today, as noted on a payment statement that I received in the mail, my principal balance is {$8500.00}. Please keep in mind, that my contract began in XXXX of XXXX and I have paid close to and/or over {$22000.00}. 
I would like a full explanation how Santander is able to receive additional money over the total amount that is noted on the contract.

Company response to consumer: Closed with explanation