Consumer complaint received 2023-02-03
Company: SANTANDER HOLDINGS USA, INC.
State: NC
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with the interest rate

Complaint:
Originally went and bought XXXX on XX/XX/XXXX at XXXX XXXX XXXX in XXXX nc. I signed a retail installment contract for XXXX months at {$32000.00} at 18 % apr. first payment date was to be XX/XX/XXXX I then was told by XXXX XXXXXXXX at a later date in XXXX, I had to go back and resign the loan with a shorter and cheaper term because the bank denied the original. When I went back in XXXX I was told to sign this loan at XXXX  month term and XXXX apr which would make my monthly payment {$720.00}. First payment date shows XX/XX/XXXX also. The paperwork I signed at the dealership says XXXX XXXXXXXX is the creditor for the retail installment contract. XXXX XXXXXXXX assigned the contract to Chrysler capital. I made my first payment on the vehichle on XX/XX/XXXX. The Chrysler capital website has never had the details of the loan on the website. I just recently went to the website and determined my payoff amount as of XX/XX/XXXX is {$28000.00} almost 4 years later. I went back and looked at the payments I have made, totaling {$37000.00} and realized something is wrong. I went and looked at the amortization of the first payment and saw it did not reflect the proper amount of an 18 % apr loan with daily interest. I contacted XXXX XXXXXXXX finance manager XXXX, who looked back at my original loan and determined they definitely werent applying this right. I was then told that the issue was between me and Chrysler capital and to call them about it. I have spoken to multiple at Chrysler capital who have informed me their policy is to start the daily interest based on the date of purchase. They said I had XXXX days of interest before my first payment adding to about ~700 so only about ~134 went to principle on the first payment versus well over ~ {$200.00} if the loan was as agreed in the contract. This has caused the principle balance of the loan to be higher in every subsequent month due to their breach of contract. As such the original apr of 18.0 % which would have been the legal maximum in NC at time of purchase to be not applied, and changed to an apr of 18.132 %, as of the first monthly payment, and possible higher than that even in subsequent payments. The loan has also reported a higher balance on my credit report since inception due to the breach of contract by Chrysler capital, and usury of 18.132 % apr. the terms disclosed in the federal truth in lending disclosure match the loan I signed and a daily calculated apr rate of 18.0 % on the date first payment is due. in no manner does the contract say apr starts daily at day of purchase or any other manner. Technically I also believe since I had to resign a loan or return the vehicle in XXXX, I dont believe XX/XX/XXXX to be my date of legal purchase anyway under those circumstances, but this is irrelevant to the fact my contracted amount has been changed. XXXX XXXXXXXX informed me that that was/is a common contract they use and Chrysler capital informed me that all loans they put in their system start interest daily at the Date of purchase, not first payment date. Provided this information I am still getting the run around and no resolution from either party. XXXX XXXXXXXX says this is not their problem, however Chrysler capital has told me several times they ( XXXX XXXX XXXX ) are my point of contact for the issue. According to NC law statute 24-2 I should be entitled to XXXX the dollar amount of total interest paid on the loan. As of XX/XX/XXXX that amount would be {$34000.00} x 2 equaling {$69000.00} I also believe that North Carolina laws says since Chrysler capital breached the contract and charged an amount of usury on the loan, the remaining {$28000.00} should be erased, as a condition of giving the lender back the vehicle, returning to our non relationship before the breach occurred. I also have requested Chrysler capital to remove the loan from my credit reports, and they have not complied, even though XXXX who I spoke with at their executive office agreed they breached the loan and the terms were not accurate. I have been so stressed over this blatant unlawful act by Chrysler capital, and just want what is the rightful recourse based on North Carolina law. I also believe that every customer that purchased a vehicle with XXXX XXXXXXXX using that contract and financing with Chrysler capital has been unlawfully over charged on their loan, if the corporate policy of Chrysler capital is truthfully to start interest at date of purchase, irregardless of what the contract they bought states.

Company response to consumer: Closed with explanation