Consumer complaint received 2022-10-25
Company: SANTANDER HOLDINGS USA, INC.
State: MN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem related to refinancing

Complaint:
In XXXX of XXXX I needed a new car. I had recently had a bankruptcy XXXX so I knew that I was going to have to pay more for credit, that isn't my issue. My issue is that I was given this loan at all, and I have an issue with the car dealership for selling it at the price they did. It leads me to believe that they work closely with this lender to approve loans for people in similar situations as my own. The car is a XXXX XXXX XXXX XXXX. I purchased this vehicle for {$18000.00}. It had XXXX miles at the time I purchased it. I would like to re-cap that I was sold a XXXX XXXX XXXX XXXX XXXX for {$18000.00}. XXXX does not negotiate price, so that's what I paid. I also purchased a service contract for {$2500.00}. Tax title and license put financing around {$23000.00}. As I stated before, I didn't have an issue with the interest rate at the time of purchase. The rate is XXXX XXXX. I knew it would be high because of the bankruptcy. I also knew that in 6 months or so I could try to refinance it, and possibly get a lower rate. When I tried to refinance it I was denied, not because of my credit, but because the loan to value ratio would exceed 300 %! I was in disbelief with the first company that had given me this information. So I tried another. When I was denied again for the same reason I did some research. It turns out the XXXX XXXX XXXX XXXX was not a car that held it's value. In fact when I bought it in XXXX of XXXX, the loan value of it was not {$18000.00} like the price, nor was it {$23000.00} like I financed. It was {$7000.00} just like it is right now, 6 months later. I understand that car dealers can set what ever price they want for their vehicles, and if you buy it that's really your issue, but banks don't work like that. Why would the bank approve a loan for nearly {$23000.00} using collateral that is only worth {$7000.00} for a person who just had a bankruptcy XXXX? Whom ever approved this loan would have to know that the person making the purchase was going to be hurt by this purchase in the long term. The vehicle itself being XXXX XXXX XXXX with XXXX miles made it high risk already. Add a 60 month loan to that equation and you get either a repossessed car a few down XXXX XXXX that is only worth a fraction of what is still owed on it, or you get a person who obviously had already struggled financially who will struggle even more as the car ages and costs more to repair and maintain then it's worth. In this scenario there is no way out for the consumer, unless they experience a wind fall financially or the vehicle is involved in a total loss accident. This loan given to me by Santander XXXX should have never happened! XXXX should be more responsible and not price gouge people, especially during a pandemic. It appears to me that the XXXX of them work together to make as many sales and loans as possible, regardless of hurting consumers and having an overall negative impact on our economy. It's possible that this is the result of only a few people with in both organizations that have a closer connection and scratch each others backs. That doesn't really matter, because there are checks and balances built in to banking systems to prevent things like this, and those failed with intent. I have not contacted either company because I don't know where to start. Santander is huge world company. I doubt that calling customer service would get you anything more than a headache from the hold music. XXXX on the other hand is different, except there isn't anyone to talk to. Out of the possibility of embarrassment, and for the convenience, I applied and secured my loan online. I did have a couple of inbound phone calls to verify my identity, but I never met anyone. I picked out the car online, purchased, and picked it up the next day. I never even test drove it. After bankruptcy I was so happy that I was approved so easily that I didn't question any of it. I feel taken advantage of, and embarrassed. If I could undo it all I would. If that isn't possible in anyway, I feel like lowering the loan to 0 % interest is fair. That would allow me to be able to pay it down faster so that I can possibly get a newer more reliable car in a couple of years, instead of 5 years from now, or the loan itself is cut in half and XXXX and Santander can battle out the difference instead of taking advantage of me. Is there any help for me with this?

Company response to consumer: Closed with explanation