Consumer complaint received 2024-09-25
Product: Vehicle loan or lease — Loan
Issue: Repossession — Voluntary repossession
Company: SANTANDER HOLDINGS USA, INC. (NY)

Complaint Against Chrysler Capital for Unlawful Practices in Auto Loan Financing, Voluntary Repossession, and Post-Repossession Charges To : Consumer Financial Protection Bureau ( CFPB ) Date : XX/XX/XXXX Finance Vehicle Information : XXXX XXXX XXXX, VIN : XXXX Complaint Details : I am filing this complaint against Chrysler Capital regarding multiple unlawful practices surrounding the auto loan agreement I entered into with them for the financing of a XXXX XXXX XXXX. Below are the specifics of my complaint : 1. Undisclosed Down Payment and Additional Charges When I signed the financing agreement with Chrysler Capital, I was not informed about additional charges, including a down payment, that were added to the total amount financed. These charges were added without proper disclosure, in violation of the Truth in Lending Act ( TILA ), 15 U.S.C. 1601, which requires lenders to clearly disclose the full terms of credit, including the total cost of the loan and any applicable charges. The Uniform Commercial Code ( UCC ) Article 9 may have also been violated if these charges were not included in the security interest disclosures, particularly under UCC 9-203, which outlines the attachment and enforceability of security interests when certain conditions, including adequate disclosure, are met. 2. Voluntary Repossession and Improper Reporting to Credit Bureaus Due to unforeseen circumstances, I had to voluntarily surrender the vehicle after it was towed for unpaid tickets from XXXXtickets that I was unaware of at the time of purchase. Since I was using the car as my primary means of compensation through XXXX, I was unable to retrieve the vehicle due to the high cost of recovering it, which left me with no choice but to allow Chrysler Capital to repossess the car. Despite the voluntary repossession, the account remains listed on my credit report inaccurately, including suggesting an ongoing balance or derogatory status. I have disputed this account with all three major credit bureausXXXX, XXXX, and XXXXyet it still remains on my credit report, even after multiple dispute attempts. This inaccurate reporting is in violation of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681, which mandates that creditors must accurately and fairly report consumer credit information. The incorrect listing has severely impacted my ability to secure a new means of transportation, which I need to support my family and get to work. As a result, I have been forced to rely on alternative transportation options such as taxis, rideshare services ( XXXX and XXXX ), buses, and trains. The accumulated costs have exceeded {$20000.00}, further straining my finances. 3. Post-Repossession Charges and Auction Sale After the vehicle was voluntarily surrendered and repossessed, Chrysler Capital added additional charges to my account that I was unaware of, further increasing the balance owed. Following the repossession, the vehicle was sold at auction, but Chrysler Capital has failed to properly account for the proceeds of the sale in relation to the remaining balance on my account. These added post-repossession charges and the handling of the auction sale further violate the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692, which governs how debt collectors and creditors must handle debts after repossession, including ensuring fair treatment of consumers and accurate debt balances. 4. Failure to Provide an Opportunity to Cure My vehicle was towed while I was using it to earn income through XXXX. I informed Chrysler Capital that I could not afford to recover the vehicle due to my financial situation. However, I was not given a reasonable opportunity to cure the default or make alternative arrangements, as outlined under UCC 9-609 regarding repossession without breach of the peace, and UCC 9-623 , which gives debtors the right to redeem collateral before it is sold. 5. Unconscionable Practices and Breach of Duty of Good Faith The lack of transparency in charges, failure to provide an adequate opportunity to cure, and post-repossession charges constitute unconscionable practices under the Federal Trade Commission Act ( 15 U.S.C. 45 ). Additionally, Chrysler Capitals failure to act in good faith throughout the financing process, including their conduct during and after the repossession, as required under UCC 1-304, constitutes a breach of the duty of good faith and fair dealing.