Consumer complaint received 2023-09-01
Company: FC HoldCo LLC
State: TX
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Repossession
Sub-issue: Loan balance remaining after the vehicle is repossessed and sold

Complaint:
Flagship Credit Acceptance violated federal law by using my vehicle for their loan for XXXX notes. 

2. Application for notes by Federal Reserve banks Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 10A, 10B, 13, or 13A of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers ' acceptances purchased under the provisions of said section 14, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under section 14 of this Act or any other asset of a Federal reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks. 

[ 12 USC 412. As amended by the acts of XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; XX/XX/XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ; and XXXX XXXX, XXXX ( XXXX XXXX. XXXX ). ] Flagship Credit Acceptance used commercial paper to submit my application which makes this an unsecured debt obligation and the repossessing of my vechicle was ILLEGAL. 

Flagship Credit Acceptance LLC transferred my note to Flagship Credit Acceptance XXXX XXXXXXXX XXXX to deposit which means Flagship Credit Acceptance LLC lost the right to my note and the right to repossess which makes this collection attempt ILLEGAL. 

XXXX. TRANSFER OF INSTRUMENT ; RIGHTS ACQUIRED BY TRANSFER. 
Primary tabs ( a ) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. 

( b ) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee can not acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument. 

( c ) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made. 

( d ) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this Article and has only the rights of a partial assignee. 

To transfer securities Flagship Credit Acceptance XXXX XXXX XXXX agreed to discharge securities per the terms of the Securities Exchange Commission. 

Creditors can not collect discharged debts.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation