Consumer complaint received 2021-09-21
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Fraudulent loan
Company: CAPITAL ONE FINANCIAL CORPORATION (OK)

When seeking car financing options, we applied with Capital One Auto Financing on XX/XX/XXXX. We were instantly approved by phone for a loan of up to {$75000.00} and informed to log into the Capital One Auto Navigator ( COAN ) to view the approval letter and research available vehicles. As we had already selected the exact vehicle we would be purchasing, it had been removed from the dealers website inventory while in transit. When we could not locate the vehicle on COAN, we called Capital One wanting to know the APR being offered on that specific vehicle and provided the VIN. The representative stated they could not provide the APR since the vehicle was not available on their COAN website. We were instructed to take the generic approval letter to the dealership when the car arrived, have the dealership call Capital One and at that time would we find out the APR.

Being curious about what interest rate we would be offered on vehicles which were listed on COAN website, we began searching for vehicles as similar in nature as possible to the XXXX XXXX XXXX XXXX that we had selected from our preferred dealership XXXX of XXXX  XXXX, Oklahoma. The nearest similar vehicle available on COAN was located at the XXXX in XXXX, Texas, and offered at 5.43 % APR. On similar vehicles also located in Texas and available on the COAN website at any dealership other than XXXX, we were offered 2.65 % APR. Based on COAN estimates, selecting to purchase through XXXX would result in an average 49 % higher APR compared to other dealerships ( See Exhibit A ). 

To determine if this was unique to the XXXX XXXX XXXX XXXX or to searching in Texas, we began to research other vehicles available in our home state of Oklahoma on the COAN. Whether attempting to compare similar vehicles or random vehicles, WITHOUT EXCEPTION EVERY VEHICLE VIEWED AT ANY DEALERSHIP OTHER THAN XXXX WAS OFFERED AT APPROXIMATELY HALF THE INTEREST RATE. This result remained consistent across all researched vehicles. Exhibits B, C, D, XXXX, F and G demonstrate the actual financing offers extended to us by Capital One Auto Finance was 48 % greater if we elected to purchase from XXXX. 

Capital One Auto Finance was contacted through their website Contact Us link on XX/XX/XXXX inquiring why XXXX was singled out for higher rates. No response has been provided to date. 

Capital One Auto Finance was contacted via phone on Friday, XX/XX/XXXX. After fully explaining the issue to the call intake representative, it was escalated to a supervisor who stated she would reach out to the Office of the President and to please hold. After a few minutes, the supervisor did return stating she was attempting to reach someone. She again returned approximately 10 minutes later, stating that the entire Office of the President was in a meeting and unavailable the rest of the day but that someone would reach out within 48 business hours. 

We received but did not answer calls from Unknown on XX/XX/XXXX and XXXX, XXXX, leaving messages which were very difficult to decipher, stating that it was XXXX with the Office of President of Capital One and she could be reached at XXXX. Calling that number results in the Were sorry. You have reached a number that has been disconnected or is no longer in service recording. 

Being unable to understand the phone number left by XXXX, we called Capital One Auto Finance on XX/XX/XXXX, to determine how to reach out to XXXX with the Presidents Office. After again explaining the nature of the call, we were put in touch with an escalated resolution services representative/manager at approximately XXXX XXXX EST. This representative stated the Presidents Office closed beginning at noon EST today and it would be closed the remainder of the day. When asked if that was every Tuesday or just this Tuesday, it was just this Tuesday. When informed that was the same story told last Friday afternoon when the entire Presidents Office was also suddenly in a meeting for the remainder of the day, the representative did confirm the telephone number for XXXX of XXXX is correct, as noted on our account record. Capitol One stated that these calls are recorded. While waiting on hold, searching the Capital One Auto Navigator again revealed the same results. Without exception, every vehicle viewed at any dealership other than XXXX was offered at approximately half the interest rate. 

Capital One representatives carefully follow their script, continually reiterating things on which we all agree. Although they may be similar, no two vehicles are alike. The offered APR/interest rate is based on many factors, including the applicants credit and employment. A specific vehicles condition, mileage, or location may affect the interest rate. We absolutely agree. 

What we have been trying to determine is why Capital One Auto Finance is charging consumers double the interest rate for selecting to buy from XXXX. We would like to know if there is a legitimate reason for charging double the interest rate based on the single variable of choosing only this Capital One Auto Finance approved dealership. In a free and fair marketplace, this seems unethical. 
If we had not had good credit and the luxury of time, this may not have been discovered. Had we walked into XXXX, presented the generic approval letter, and accepted 5.43 % APR, it would have cost an additional {$1700.00} over the life of the loan when compared to any other dealership offer of 2.65 % APR for substantially similar vehicles. Thankfully that did not occur to us, but it makes one wonder how many other consumers this has impacted, not to mention the potential harm to XXXX.