Consumer complaint received 2024-10-06
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc. (IN)

Dear Sir/Madam, I am writing to formally dispute the validity of the auto loan agreement dated XX/XX/year>, concerning the above-referenced account with XXXX XXXXXXXX XXXX XXXX, financed through XXXXXXXX XXXX XXXX XXXXXXXX  XXXX XXXX This dispute is based on violations of the Truth in Lending Act ( TILA ), specifically 15 U.S.C. 1638 ( a ) and 15 U.S.C. 1605, due to inconsistencies in the disclosed finance charge, monthly payment amount, amount financed, and total of payments. 

I also wish to bring to your attention that this loan has since been charged off and the collateral, namely the vehicle, has been repossessed. Given the significant errors and discrepancies identified in the original contract, I contend that the loan was never valid, and I am seeking appropriate relief for the harm caused by this improperly executed agreement. 

Inaccuracies Identified and Corrected Calculations : XXXX. Incorrect Amount Financed The originally disclosed amount financed was {$14000.00}. However, this amount should have excluded certain charges that were improperly included as part of the financing amount. Specifically : Extended Service Contract or Warranty : {$2200.00} Unlimited Protection : {$2000.00} XXXX XXXX for XXXX XXXX XXXX XXXX : {$40.00} Corrected Amount Financed Calculation : {$14000.00} - {$2200.00} - {$2000.00} - {$40.00} = {$10000.00}. 
The corrected amount financed is therefore {$10000.00}. This discrepancy indicates that the original disclosure overstated the amount financed, misleading me regarding the actual cost of credit. 
XXXX. Incorrect Finance Charge Disclosure Based on the corrected amount financed of {$10000.00}, the finance charge should be calculated using the loan term ( 72 months ) and the interest rate ( 11.722 % ). 
Corrected Finance Charge Calculation : Loan Interest : Loan Interest = XXXX x XXXX x 11.722 % = XXXX Additional Charges : Extended Service Contract or Warranty : {$2200.00} Unlimited Protection : {$2000.00} XXXX XXXX for XXXX XXXX XXXX XXXX : {$40.00} Corrected Finance Charge : {$4100.00} ( loan interest ) + {$2200.00} ( extended service contract ) + {$2000.00} ( unlimited protection ) + {$40.00} ( vendors insurance ) = {$8400.00}. 
The originally disclosed finance charge of {$5900.00} significantly underreported the cost of credit. Under 15 U.S.C. 1605, all charges that are a condition of obtaining the loan must be included in the finance charge, and the omission of these charges constitutes a violation.

3. Incorrect Total of Payments The originally disclosed total of payments was {$20000.00}, which was derived from a payment schedule of XXXX payments of {$280.00}. However, based on the corrected finance charge and amount financed, the total of payments should be recalculated as follows : Corrected Total of Payments Calculation : Corrected Amount Financed : {$10000.00} Corrected Finance Charge : {$8400.00} Corrected Total of Payments : XXXX + XXXX = XXXX The corrected total of payments is {$18000.00}, which is significantly less than the originally disclosed amount. This discrepancy indicates a misrepresentation of the total cost of the loan, violating 15 U.S.C. 1638 ( a ) ( 5 ). 
XXXX. Incorrect XXXX XXXX XXXX XXXX on the corrected total of payments, the monthly payment amount must also be corrected. The corrected monthly payment amount should be : Corrected Monthly Payment Calculation : Corrected Monthly Payment : { Total of Payments }/ { Number of Payments } = XXXX / XXXX = XXXX The corrected monthly payment is {$260.00}, which differs from the originally disclosed amount of {$280.00}.