Consumer complaint received 2020-11-27
Company: Santander Consumer USA Holdings Inc.
State: AZ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Struggling to pay your loan
Sub-issue: Problem after you declared or threatened to declare bankruptcy

Complaint:
I am the primary account holder on my auto loan. I am having difficulty getting a hold of Santander Consumer USA about my cosigner filing chapter XXXX bankruptcy and Santander not allowing me to have access to my account, paying my bill, giving me options on what to do next, or explain any of the following concerns my cosigner, his wife and I had with this auto loan company since the beginning of our auto loan in XXXX XXXX. The following is a complaint my cosigner and I wrote during the time we both gathered relevant documents and tried to contact Santander to resolve this issue, including my own similar complaint to them last month. 

Santander USA requires a {$480.00} monthly payment for our vehicle loan, totaling {$19000.00}, paid off in a 72 month term at a 20.49 % finance charge, according to our original loan documents. I was asked to cosign for an auto loan from XXXX XXXX dealership for my daughter in law, I will call ( her, she, kids, kid ), even though I had a very low credit score at the time, I believed at the time XXXX XXXX dealership located in XXXX AZ, knew me from my previous purchase of a vehicle from there location, renting through XXXX many times and the wages I earned from my job were satisfactory at the time. She had no credit and only around XX/XX/XXXXyrs. old when we purchased this vehicle. Due to both credit scores being poor at the time of approval, it resulted in a higher interest rate, at 20.49 %. 
After returning home from the dealership, my wife, ( Wife ) carefully examined the details of the auto loan documents. Wife was upset after informing her of the amount of interest rate charged. Wife calculated the financing and her results repeatedly showed, the monthly amount for this percentage rate of 20.49 % brings the monthly payment to {$480.00} a month, even calculating on the Santander Consumer USA website shows the monthly payment should be {$480.00}. I never knew this was a simple interest loan until a couple months ago. I gave permission to Santander for my wife to be allowed to discuss the details of the account with Santander. 
Wife asked Santander about the percentage rate and the amount of the monthly payments and gave details about her find. Santander decided they need more review on the situation and an accounting manager will contact us soon. 

My wife demanded an answer before we finished our phone call on XX/XX/XXXX with a supervisor from Santander, after a year of inquiring the same question 4 different times, the answer was finally quoted, " It is our own personal finance charge ''. 
Wife, the kids nor I did not know how to resolve this problem with Santander or who to turn to for help. 

XXXX and XX/XX/XXXX, payments were made and they were current on their payments. 
XX/XX/XXXX, she, our son, and myself, were all laid off around the same time. I was laid off XX/XX/XXXX. I called Santander and asked if we could have an extension, knowing I could not help the kids if they needed it, which I knew they would. We were approved for an extension due to the COVID-19 pandemic. An extension was given for XXXX and XX/XX/XXXX. Even though we did not like the terms and conditions required in the documents requiring my signature in order to get this extension. I had no choice at the time but to sign. The kids resumed payment in XX/XX/XXXX. XX/XX/XXXX was paid but she could not make her payment for XXXX or XX/XX/XXXX. 

I received 2 phone calls from Santander in XXXX around the XXXX and XXXX, XXXX, I asked the kids if they were behind, they said yes, my wife and I tried to figure out if we could help or not, before returning the Santander call. We decided we need to ask for another extension and will ask them when they call back if the kids do not make a payment soon. We figured the kids made the payment after not receiving another phone call and the kids thought we paid the bill, considering she let us know she was behind and struggling. 

XX/XX/XXXX Santander calls me, notifying me we are 3 months behind. the kids do not get phone calls from Santander only my wife and I do. I tried to log in to my account on the Santander website like usual in XX/XX/XXXX, so my wife can download all statements and transactions but oddly, they locked me out of the account and left a phone number to call in order to log back on. Which I was never able to successfully recover my account to log into with them. 

I immediately ask for the extension and explain our situation. I just started a new job after being unemployed since XX/XX/XXXX, my son was still unemployed and she has limited hours all due to COVID-19. They refused the extension unless I caught up on 2 months worth of payments. I explained I could not do this. They threatened to repo the vehicle, I know a repo would hurt both our credit score for a long period of time. I did not want to hurt her score, I was left with no choice but to give up my first full paycheck received at my new job and pay it all to Santander. I could not afford food for 2 weeks for our other kids at home. Santander said they would send me an email, requiring my e-signature on another agreement that must be signed and agree on the following terms and conditions to apply for a two month extension. 

This agreement requires me to agree to the IMPOSSIBLE! Dated XX/XX/XXXX, it requires that I agree to make the next monthly payment, agreeing to pay on the due date for the month of XX/XX/XXXX. Next due date XX/XX/XXXX. 

I called Santander letting them know there was a mistake. You can't sign a document promising anyone that you can do something on a date that has already passed. That is an automatic, failed to comply with terms and conditions of contract as soon as you sign the form. 

XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, payments were not made. XX/XX/XXXX, I made 2 months worth of payments so I can enter into an extension. These 2 payments, paid XX/XX/XXXX and XX/XX/XXXX. Leaving XX/XX/XXXX and due date XX/XX/XXXX, for the extension agreement. Having those dates to e-sign, agreeing to pay the next monthly payment after the extension period ends, due on XX/XX/XXXX would be the correct way to handle the extension. learning from the last extension we signed. We did not receive another email or any other correspondence regarding the correct forms to e-sign. 

She was able to still log into the Santander account on her credentials, I got her information from her and permission to log in to her account. I download the XXXX, XXXX, XXXX, and XX/XX/XXXX statements and all transaction history. I learned that no extension applied at all after I paid the 2 months they demanded or else they will repo the vehicle. 

XX/XX/XXXX, I had to file bankruptcy due to being laid off from my previous job on XX/XX/XXXX. I now only make half the earnings I used to make at my previous job. Trying to keep and afford my home, bankruptcy seemed to be the only option left. 

Santander made this vehicle purchase impossible to ever pay off. The kids nor I will ever be able to accomplish paying this loan off with such a high interest rate, almost every payment Her or I have made toward this auto loan sinceXX/XX/XXXX, 100 % of the payments made went straight to interest. Santander spoke to me on the phone when I placed my concern and complaint with them, they did not know how much interest I had left to pay before the payments would start going to principal again. That is unacceptable to me. If I am to make my payments, I should have a right to know how much I owe in interest before any money is paid to the principal again. 

I asked for a payoff statement the last time she was able to log into her account, the amount was only a few hundred dollars less than what we originally owed on the vehicle for the entire amount of the loan. 

I believe Santander Consumer is making it impossible for us to pay off this loan, with getting a cosigner with also having bad credit, enabled Santander to place a high interest rate and make 2 people liable for the loan that is impossible to pay off. I do not want Santander Consumer USA to get away with what they are doing to consumers. She is so young and they will come back on her for this auto loan with a starting loan of {$19000.00} XX/XX/XXXX. Until the date XX/XX/XXXX the loan payoff amount was good for {$19000.00}. 

I feel I was LIED to about the interest rate since day one. The extension that I would get for 2 months in XX/XX/XXXX, is false as it appears in documents, only one month extension was given. 

I feel Santander Consumer USA, knowingly and intentionally charged a higher interest rate than what is shown on our loan contract. Even if it is only a couple dollars difference monthly but It adds Depending how many other consumers they do this exact same thing to, every month they could make an extra couple million dollars and nobody would ever really notice unless they took the time to do all the math themselves. 

Wife claims it was a red flag when she noticed the price of the extended warranty. She was upset at me for not checking any vehicle manufacturer recalls that may have been raised before purchase of a vehicle. I would never do that! She would and she was right. This vehicle already, and within the first year owned, has its 3rd new engine and electrical harness replaced. After it almost caused my family to wreck on the highway. 

The wife believes Santander, and XXXX dealership should be aware of these kinds of recalls that would result in lifetime warranties for new and 2nd owned vehicle owners, that covered everything that an extended warranty would cover. She claims Auto loan dealers should always update important information on vehicles they sell to consumers before they are sold and especially expensive added products that would have no value to the consumer at all. 

I inquired about Gap insurance but XXXX talked us out of adding gap insurance to our vehicle. XXXX told us that we did not need gap insurance Because we were not underwater on it and it was worth more than what we paid for it. 
I get the impression now after seeing how Santander have distributed our payments toward interest and principal every month, we were underwater within the first 6 months of purchasing the vehicle. 

I was surprised when XXXX asked me to cosign for the kids. Qualifying my credit score I believe to be lower than hers at the time was weird but I understood how a good job needs to show someone, at least her or I, makes enough earnings for approval. I should have realized Credit had to matter too, on at least one of us or I could co-sign for my son at XXXX in XXXX, AZ, just one month prior. I did not qualify to cosign for him. I had a big head when I qualified for her so I didn't think twice about why, I just felt special and worthy again. 

Now after I filed for bankruptcy, she is no longer allowed to log into her account with Santander Consumer USA, nor will they accept a payment from her for the loan. 
I believe she should have other options available to her for this loan. I don't have a choice but to file bankruptcy which is not her fault. Does she have to file now too? 

XXXX  19 guaranteed payments made so far totaling {$9200.00}. 
Original loan {$19000.00} Start date XX/XX/XXXX {$19000.00} payoff amount good through XX/XX/XXXX.

Company response to consumer: Closed with explanation