Consumer complaint received 2016-01-01
Company: CAPITAL ONE FINANCIAL CORPORATION
State: TN
Product: Consumer Loan
Sub-product: Vehicle loan
Issue: Taking out the loan or lease

Complaint:
XXXX, my husband purchased a XXXX Jeep Patriot from a local dealership in our area, using his truck as a trade-in towards the purchase and took possession of the new vehicle. After having the Jeep for almost two weeks, the Sales Manager of the dealership called my husband with a " small glitch '' with the financing. At the time, my husband was receiving a small income from the SSA due to his XXXX. We both went to the dealership where we were told that he did n't have enough income for any of their lenders to finance his loan for approximately {$16000.00}. The Sales Manager insisted that we apply as co-applicants since I had stable employment and this would provide a better demonstration of being able to afford the vehicle with the combined incomes. Due to exhaustive medical bills after my husband 's XXXX, I knew my credit would have a negative impact on the application, and my husband and I requested to cancel the entire purchase - relinquishing the Jeep and asked for his truck back. At that time, we were informed the dealership had sold his truck and that we were essentially stuck with the Jeep despite not yet having a lender willing to " buy the paper. '' The Sales Manager " finally convinced '' Capital One Auto Finance to fund the purchase and it only increased our payment " a little bit '' -- bringing the payment to {$480.00} per month. He produced a new sales contract and specifically instructed us to date the contract for the original date of purchase ... two weeks prior ... which invalidated and denied us with our right to a 3-day period to change our minds as buyers. XX/XX/XXXX, my husband and I were victims of a bank compromise wherein our bank account was immediately depleted of any and all funds deposited. This caused our first payment to CAPONE to bounce, and we immediately made arrangements to cure the issue. For 3 months, we made XXXX payments each month. Over 3 years later, CAPONE is still reporting us to be 180 days in arrears, destroying any attempt to rebuild our credit while juggling ongoing medical expenses and financial hardships. CAPONE repeatedly called us while my husband was in hospital, after XXXX, while in XXXX, and even when he was XXXX. We have paid late, but have paid EVERY month since being conned into what we recently found out was a lose-lose, never-ending predatory loan. CAPONE has informed us that the type of loan set up was not designed to be paid off and if it ever is, we will have paid almost 3 times the value of the vehicle over the course of the loan. We have requested to have the loan refinanced, to which CAPONE stated they do not refinance their loans. When attempting to refinance with local lenders, they have informed us that we are in a predatory loan and that due to the majority of all our payments going towards CAPONE interest revenue, very little of our payments have gone towards the principal value of the Jeep, and therefore they are unable to help us. This type of action is derelict on the part of a financial institution and not within compliance of the federal regulations in place to protect consumers ' interests. One agent with CAPONE even acknowledged that their business is aware of the faulty lending practices from the dealership but said their hands are tied and we are essentially stuck with the vehicle, the huge payment and the irreparable damage to our credit as we struggled to meet our obligation ... and then asked when she could set up our next payment for processing.

Company response to consumer: Closed with explanation