Consumer complaint received 2024-12-12
Product: Vehicle loan or lease — Loan
Issue: Repossession — Notice to repossess
Company: CREDIT ACCEPTANCE CORPORATION (IN)

Subject : Formal Complaint Against Credit Acceptance Corporation for Breach of Contract, Fiduciary Duty, and Violations Under SEC and UCC Provisions Dear CFPB, I am filing this formal complaint against Credit Acceptance Corporation, a security transfer agent, for multiple violations of contractual, fiduciary, and regulatory obligations. Their actions represent a breach of contract, violation of fiduciary duties under SEC laws, and a disregard for my rights as a holder in due course. 

I am also requesting that XXXX, XXXX, and XXXX investigate this matter. This account has already been paid and lacks a properly UCC-perfected lien. Additionally, the account is income-based and connected to a XXXX XXXX ( XXXX XXXX ), which XXXX XXXX has failed to properly disclose or document. They have also refused to provide necessary tax forms such as the 1099-OID and 1099-B, despite my lawful requests, and instead engaged in bartering with a COID ( Certificate of Indebtedness ). 

Below, I outline the critical issues and request immediate action to address these violations : XXXX. Breach of Fiduciary Duty and SEC Filing Obligations Credit Acceptance Corporation, as a security transfer agent, is subject to regulations under SEC laws and indentured agreements. Their failure to fulfill their fiduciary duties includes : Not providing tax forms ( e.g., 1099-B and 1099-OID ) after I filed IRS Forms 2848 & ( Power of Attorney ) and 56-F ( Fiduciary Relationship Notice ). & 1099A Failing to acknowledge the power of revocation notice I sent, which was executed with two witnesses and a notary. This notice has not been rebutted.

Refusing to comply with my lawful requests to audit the account, which I now have a CUSIP number attached to for further tax auditing through the IRS.

2. Breach of Contract and Arbitration Clause The contract explicitly requires disputes to be resolved via arbitration. Despite my formal notice requesting arbitration, Credit Acceptance has unlawfully pursued repossession actions, violating their contractual obligations.

Additionally, I returned their contract as the transferee under UCC provisions. If they wish to recover the vehicle, they must return the security they used as a commercial value instrument through the Treasury window.

3. Violation of UCC 3-603 : Tender of Payment This vehicle has already been paid in full pe
r the commercial paper I provided. Under UCC 3-603, my payment obligations have been discharged, yet Credit Acceptance continues to act as though the contract remains in dispute, demonstrating bad faith.

4. Contractual and Disclosure Violations by the Dealer This contract is written in two different languages, which the dealer failed to disclose at the time of signing. Additionally, the dealer did not provide me with the correct contract immediately ; it took me two days to obtain and review it. Their failure to comply with full disclosure requirements invalidates the agreement and raises further questions of fraud.

5. Holder in Due Course Rights As the holder in due course, I have lawfully requested : The transfer of the vehicle into my trust.

Proper acknowledgment of my secured party interest and the return of my security.

Despite these lawful requests, Credit Acceptance has failed to comply.

6. Improper Repossession Attempts and Lack of Transparency I have requested the name and credentials of the repossession agent involved. Credit Acceptance has refused to provide this information. Upon independent investigation, it appears this individual has a criminal r
ecord, raising concerns about their background and any unauthorized contracts Credit Acceptance may have with them.

7. Evidence of Fraud and Bartering I have sent Credit Acceptance evidence of fraud within their contract, including their unauthorized use of my security as commercial value without proper disclosure. I am also in the process of filing a formal complaint with the Federal Trade Commission ( FTC ) regarding these deceptive and unfair practices.

8. Additional Violations Related to CUSIP and IRS Auditing This account has a CUSIP number associated with it, which I will soon reclaim. The presence of a CUSIP demonstrates this account is being traded as a security, yet Credit Acceptance has failed to act in compliance with SEC and tax laws.

I have requested the IRS to audit this account and ensure proper tax filings. Credit Acceptances refusal to cooperate or acknowledge these obligations further demonstrates their noncompliance.

9. Additional Violations of UCC-1 Perfection and COID Transactions This account lacks a properly UCC-perfected lien , further invalidating Credit Acceptances claims. Additionally, their bartering of this account with a COID ( Certificate of Indebtedness ) without my consent or proper documentation violates fiduciary and contractual obligations.

Request for Relief I respectfully request the CFPB to : 1. Order Credit Acceptance to cease all repossession efforts until arbitration proceedings are initiated per the contract terms.

2. Investigate Credit Acceptances breach of fiduciary duties as a security transfer agent under SEC and UCC provisions.

3. Compel the company to provide all tax forms and evidence of filings made on my behalf, including 1099-OID and 1099-B.

4. Require Credit Acceptance to return my security if they intend to repossess the vehicle.

5. Ensure compliance with laws governing contract holders in due course, fiduciary obligations, and equity principles. 
6. Include XXXX, XXXX, and XXXX in this investigation to ensure proper reporting of the account and verification of all payment and XXXX details. 

Supporting Documentation Enclosed, you will find : A copy of the contract highlighting the arbitration clause.

Proof of tendered payment under UCC 3-603.

Copies of notices and communications sent to Credit Acceptance.

Documentation of their failure to respond appropriately or act in good faith.

Conclusion Credit Acceptance Corporations actions constitute severe violations of law, equity, and fiduciary obligations. Their refusal to honor arbitration, their breach of SEC and UCC provisions, and their unlawful repossession attempts require immediate redress.

I trust that the CFPB, along with the credit bureaus, will take swift action to hold Credit Acceptance accountable and restore my rights under the law.