Consumer complaint received 2024-11-25
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (IL)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/year> USAA Disputes Department XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX Subject : Formal Dispute and Demand for Rescission Under TILA, FDCPA, and FCRA Violations To Whom It May Concern : I am writing to formally dispute the handling of my auto loan, including improper issuance of multiple car titles, failure to perfect the security interest, inaccurate credit reporting, and harassing collection practices. These actions constitute violations of the Truth in Lending Act ( TILA ), Fair Debt Collection Practices Act ( FDCPA ), Fair Credit Reporting Act ( FCRA ), and Federal Trade Commission ( FTC ) regulations. Your institutions actions have caused substantial financial harm, emotional distress, and significant damage to my credit profile. 

Key Issues 1. Multiple Car Titles Issued ( XX/XX/year> XX/XX/year> ) : Between XX/XX/year>, and XX/XX/year>, two separate car titles were issued for the same vehicle by the State of Illinois. This discrepancy demonstrates your institutions failure to perfect the security interest in a timely manner, as required by state law.

The first and only car payment was made on XX/XX/year>, prior to my discovery of the title issues. 
I received a copy of the first title on XX/XX/year>, confirming the administrative failures.

The issuance of two titles within such a short period raises serious concerns about the validity of the loan and the transparency of your institutions actions.

2. Re-Aging of the Loan and Lack of Transparency : It is evident that USAA deliberately re-aged my credit account multiple times to avoid a charge-off of the loan, despite the unresolved issues with the car titles caused by your institutions negligence.

By re-aging the account, USAA knowingly manipulated my consumer credit report, reducing my credit score by over XXXX points and causing substantial financial harm. 
Your institution failed to provide transparency regarding the unperfected car titles and instead sought to protect its interests by avoiding a charge-off of the loan.

These actions directly violate FCRA, FDCPA, and FTC regulations, as they demonstrate willful negligence, bad faith, and attempts to deflect responsibility.

3. FDCPA Dispute and Improper Response : When I formally disputed the loans validity under 15 U.S.C. 1692g of the FDCPA, USAA responded by pointing fingers and making baseless accusations against me and the dealer. These unproven allegations appear to be an attempt to shift blame for your institutions administrative failures.

4. TILA Violations and Extortion Attempts : USAAs failure to disclose the delay in lien perfection and subsequent attempts to extort payments from me while the loans validity was in dispute constitute violations of TILA.

Demanding payments on a loan with unresolved title issues and manipulating credit reporting demonstrates bad-faith behavior and noncompliance with federal consumer protection laws.

5. Aggressive and Harassing Collection Practices : USAA representatives called me 2-3 times a day, threatened repossession, and demanded immediate cash payments despite my formal dispute of the loans validity.

These actions violate the FDCPA, which prohibits harassment, repeated calls, and collection attempts on disputed debts.

Demanded Actions To resolve these issues, I demand the following : 1. Rescission of the Loan : Pursuant to 15 U.S.C. 1636 ( 4 ), I demand the immediate termination of this consumer credit transaction and full rescission of the loan.

2. Double the Finance Charges : As provided under 15 U.S.C. 1640 ( a ) ( 2 ), I demand compensation equal to twice the finance charges paid to date for your violations of TILA.

3. Correction of Credit Reports : Immediate correction of all inaccurate reporting to credit bureaus, including the removal of derogatory marks, reversal of re-aging actions, and any false claims about a perfected security interest.

4. Cessation of Harassment : Immediate cessation of all collection activities, including phone calls and repossession threats, until the validity of the loan is resolved.

5. Written Explanation : A detailed explanation of the issuance of two car titles between XX/XX/year>, and XX/XX/year>, and why USAA failed to perfect the security interest within the required timeframe.

A justification for the repeated re-aging of the loan and its impact on my credit score.

Potential Legal Action If you fail to comply with these demands within 15 business days, I will take the following actions : File formal complaints with the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), and the Illinois Attorney General.

Pursue legal action to enforce rescission of the loan, recover damages for violations of TILA, FDCPA, and FCRA, and seek additional compensation for harm caused by your institutions actions.

Conclusion This letter serves as a formal dispute and demand for resolution under federal and state laws. Your institutions conduct has caused significant financial harm, stress, and damage to my creditworthiness. I expect a response within 15 business days. Failure to provide a satisfactory resolution will result in escalation to regulatory authorities and legal proceedings.

Please direct all correspondence to the contact information provided above. 

Sincerely, XXXX XXXX