Complaint sub-issue: Credit denial

On XX/XX/2021 I approached XXXX XXXX XXXX of XXXX to extend my consumer credit for a consumer transaction. Upon entering the building, I was introduced to XXXX XXXX. XXXX and I shared pleasantries and began to discuss the transaction. Notice was given this transaction is intended to be a consumer transaction and I would like to extend my consumer credit. XXXX let it be known an application was needed. Not a problem. XXXX said " paper was not an option and application was all electronic ''. With that being said, I left with the particular detailed information of the car. Upon filling out the application, I noticed the dealership of the consumers private personal financial data value pursuant ucc 1-202 and ucc 1-204 . Once the application was complete, communication by way of text messaging to XXXX was initiated. XXXX communicated the loan was denied and a cosigner would be needed. The only way the dealership could assist me was if a down payment was brought in. I responded by requesting the lender that the consumers account with XXXX XXXX of XXXX of XXXX was sent to for such a decision being made on behalf of the consumers credit and if the dealership participated in the Truth in Lending Act. The account was sent to a third party by the name of XXXX XXXX XXXX. As for if the dealership participates in the Truth in Lending Act, he never answered. During this conversation with XXXX, my consumer credit file was also ran more than once which in turns further hinders and injures my consumer credibility. These false and misleading tactics are in direct violation of the Truth in Lending Act and Regulation Z and directly withholds and conceals the consumers credit from the consumer.

16 CFR 433.1 - Definitions.

433.1 Definitions.

( a ) Person. An individual, corporation, or any other business organization.

( b ) Consumer. A natural person who seeks or acquires goods or services for personal, family, or household use. 
( c ) Creditor. A person who, in the ordinary course of business, lends purchase money or finances the sale of goods or services to consumers on a deferred payment basis ; Provided, such person is not acting, for the purposes of a particular transaction, in the capacity of a credit card issuer. 
( d ) Purchase money loan. A cash advance which is received by a consumer in return for a Finance Charge within the meaning of the Truth in Lending Act and Regulation Z, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who ( 1 ) refers consumers to the creditor or ( 2 ) is affiliated with the creditor by common control, contract, or business arrangement.

( e ) Financing a sale. Extending credit to a consumer in connection with a Credit Sale within the meaning of the Truth in Lending Act and Regulation Z.

( f ) Contract. Any oral or written agreement, formal or informal, between a creditor and a seller, which contemplates or provides for cooperative or concerted activity in connection with the sale of goods or services to consumers or the financing thereof.

( g ) Business arrangement. Any understanding, procedure, course of dealing, or arrangement, formal or informal, between a creditor and a seller, in connection with the sale of goods or services to consumers or the financing thereof.

( h ) Credit card issuer. A person who extends to cardholders the right to use a credit card in connection with purchases of goods or services.

( i ) Consumer credit contract. Any instrument which evidences or embodies a debt arising from a Purchase Money Loan transaction or a financed sale as defined in paragraphs ( d ) and ( e ) of this section.

( j ) Seller. A person who, in the ordinary course of business, sells or leases goods or services to consumers.

16 CFR 433.2 - Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices.

433.2 Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices.

In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of section 5 of that Act for a seller, directly or indirectly, to : ( a ) Take or receive a consumer credit contract which fails to contain the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

or, ( b ) Accept, as full or partial payment for such sale or lease, the proceeds of any purchase money loan ( as purchase money loan is defined herein ), unless any consumer credit contract made in connection with such purchase money loan contains the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

15 U.S. Code 1605 - Determination of finance charge ( a ) Finance charge defined Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction. The finance charge shall not include fees and amounts imposed by third party closing agents ( including settlement agents, attorneys, and escrow and title companies ) if the creditor does not require the imposition of the charges or the services provided and does not retain the charges. Examples of charges which are included in the finance charge include any of the following types of charges which are applicable : ( 1 ) Interest, time price differential, and any amount payable under a point, discount, or other system or additional charges.

( 2 ) Service or carrying charge.

( 3 ) Loan fee, finders fee, or similar charge.

( 4 ) Fee for an investigation or credit report.

( 5 ) Premium or other charge for any guarantee or insurance protecting the creditor against the obligors default or other credit loss.

( 6 ) Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender ( for delivery to the broker ) whether such fees are paid in cash or financed.

( b ) Life, accident, or health insurance premiums included in finance charge Charges or premiums for credit life, accident, or health insurance written in connection with any consumer credit transaction shall be included in the finance charges unless ( 1 ) the coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit, and this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit ; and ( 2 ) in order to obtain the insurance in connection with the extension of credit, the person to whom the credit is extended must give specific affirmative written indication of his desire to do so after written disclosure to him of the cost thereof.

( c ) Property damage and liability insurance premiums included in finance charge Charges or premiums for insurance, written in connection with any consumer credit transaction, against loss of or damage to property or against liability arising out of the ownership or use of property, shall be included in the finance charge unless a clear and specific statement in writing is furnished by the creditor to the person to whom the credit is extended, setting forth the cost of the insurance if obtained from or through the creditor, and stating that the person to whom the credit is extended may choose the person through which the insurance is to be obtained.

15 U.S. Code 1662.Advertising of downpayments and installments No advertisement to aid, promote, or assist directly or indirectly any extension of consumer credit may state ( 1 ) that a specific periodic consumer credit amount or installment amount can be arranged, unless the creditor usually and customarily arranges credit payments or installments for that period and in that amount.

( 2 ) that a specified downpayment is required in connection with any extension of consumer credit, unless the creditor usually and customarily arranges downpayments in that amount.

Uniform Commercial Code 1-202. Notice ; Knowledge.

( a ) Subject to subsection ( f ), a person has " notice '' of a fact if the person : ( 1 ) has actual knowledge of it ; ( 2 ) has received a notice or notification of it; or ( 3 ) from all the facts and circumstances known to the person at the time in question, has reason to know that it exists.

( b ) " Knowledge '' means actual knowledge. " Knows '' has a corresponding meaning.

( c ) " Discover '', " learn '', or words of similar import refer to knowledge rather than to reason to know.

( d ) A person " notifies '' or " gives '' a notice or notification to another person by taking such steps as may be reasonably required to inform the other person in ordinary course, whether or not the other person actually comes to know of it.

( e ) Subject to subsection ( f ), a person " receives '' a notice or notification when : ( 1 ) it comes to that person 's attention; or ( 2 ) it is duly delivered in a form reasonable under the circumstances at the place of business through which the contract was made or at another location held out by that person as the place for receipt of such communications.

( f ) Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time it is brought to the attention of the individual conducting that transaction and, in any event, from the time it would have been brought to the individual 's attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routines. Due diligence does not require an individual acting for the organization to communicate information unless the communication is part of the individual 's regular duties or the individual has reason to know of the transaction and that the transaction would be materially affected by the information. 

Uniform Commercial Code 1-204. Value.

Except as otherwise provided in Articles 3, 4, [ and ] 5, [ and 6 ], a person gives value for rights if the person acquires them : ( 1 ) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection ; ( 2 ) as security for, or in total or partial satisfaction of, a preexisting claim ; ( 3 ) by accepting delivery under a preexisting contract for purchase ; or ( 4 ) in return for any consideration sufficient to support a simple contract.