Consumer complaint received 2024-10-10
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: SANTANDER HOLDINGS USA, INC. (MD)

Santander Consumer USA Violations Santander failed to uphold the terms of the contract they purchased from the dealership therefore, causing harm to the borrower, by committing the following numerous Consumer Protectioin and Finance violations including : the Truth in Lending Act, Regulation Z, Consumer Finance Protection Act, Fair Credit Reporting, Risk-Based Pricing Rule, Unfair, Deceptive and/or Abusive Acts or Practices ( UDAAP ), New jersey Consumer Fraud Act , and Auto Lender Liability Laws, and their obligation to fulfill their Fiduciary Responsibility. Santander Consumer USA engaged in deceptive and abusive practices in connection with an offer or extension of credit in violation of the CFPA ( 12 U.S.C. 5531, 5536 ). Santander Consumer USA is well aware of the deceptive acts and practices committed by XXXX XXXX XXXX, XXXX, as evident in the numerous New Jersey lawsuits filed against the dealership and Santander being named as a party to a few of these lawsuits. However, Santander as a result of their long-term relationship with the dealership, failed to adequately correct or monitor the behavior, engaged in unfair and deceptive practices with the dealership by purchasing loans from the dealership, and knowingly and recklessly substantially assisted the conduct of the dealership. Santander failed to conduct meaningful oversight of conduct by auto dealers turning a blind eye to dealer abuse and failing to meaningfully monitor dealer behavior, as well as the Fair Credit Reporting Act 's unlawful furnishing activities, and therefore violated the CFPA ( 12 U.S.C. 5536 ( a ) ( 3 ) ) .Santander Consumer USA engaged in fraudulent and deceptive practices, making false and misleading representations, and concealing material information in disclosures, during and after their investigation into the consumers CFPB and XXXX complaints against the dealership, and therefore violated the New Jersey 's Consumer Fraud Act ( CFA ) requiring dealers to provide customers with disclosures, and advertising and selling used motor vehicles without required disclosures or including all charges.

1. Fair Credit Reporting Act Violation This legislation provides consumers the right to obtain a free credit report from each one of the three nationwide agencies that create credit reports for consumers. The act enables consumers to dispute any information in their credit reports if they believe its incomplete or inaccurate.

2. Risk-Based Pricing Rule Violation Whenever consumers apply for an auto loan, this rule ensures that applicants receive information about their credit scores, often through a Credit Score Disclosure Notice. These notices not only list applicants credit scores but also put them in context and how they compare to other consumers.

3. Truth in Lending Act ( TILA ) : Failing to disclose changes in important loan terms regarding amount financed, finance charges, and total loan amount clearly and accurately can lead to a lawsuit under the Truth in Lending Act. 
Failure to ensure that auto loan was free of errors, clerical mistakes, and other inaccuracies.

4. Regulation Z Failure to respond to requests for documentation of charges on transactions summary Failure to correct and provide fair and timely responses to billing disputes.

Manipulating dates of consumer requests and company responses to requests so that it appeared they were responded to in a fair and timely matter.

5. Unfair, Deceptive and/or Abusive Acts or Practices ( UDAAP ) : Failing to post payments timely or properly or to credit a consumers account with payments that the consumer submitted on time and then charging late fees to that consumer. 
Falsely representing the character, amount, or legal status of the loan on transactions summary. 

6. Fraudulent information on the contract : Santander failed to adequately verify the following information before and after purchasing the contract the dealership including : o Vehicle purchase price o Sales Tax o Hidden add-on options of {$13000.00} that not listed on the Itemization of Amount Financed or name of the company to whom was being paid, that consumer did not approve nor was aware of until the receipt of Santanders correspondence, XX/XX/XXXX, and are not included on original RISC Itemization of Amount Financed but included on a forged Buyers Order never approved by or with knowledge of consumer - Buyers Order calculations are inconsistent with Amount of Itemization of Amount Financed and include consumer being charged twice for the VSC that is included in the cash price and in the itemization of amount financed; in addition to the additional add-on options not included and itemized on the original RISC, but hidden in the cash price discovered by consumer upon receiving XX/XX/XXXX correspondence from Santander. 
o Double charging consumer {$4400.00} for a VSC ( extended warranty ) amount was added to the vehicle cash price and the only add-on listed on the contract. 
o Trade-in amount leading to positive equity of {$14000.00} which was failed to be included on contract but clearly stated on the ST-10 o 7. Failure to properly process payments : Failure to accurately record or apply loan payments, leading to incorrect balances or late payment penalties. 

Santander failed to : Provide a notice when they use a consumer report to extend credit and the terms are less favorable than what's offered to most consumers, especially if consumer had been pre-approved for credit based on vehicle price, terms, APR, etc. 
Disclose the consumer credit score and related information when credit score was used in their decision to extend credit.

Provide consumer with a credit score disclosure notice to all customers, regardless of the terms they are offered.

Under the Rule, if a dealer engaged in fraud or made misrepresentations in selling a car on credit, a consumer could raise the dealers conduct as a defense to the lenders demand for payments. Consumer made Santander aware of such actions by the dealership in consumer correspondence dated XX/XX/XXXX. As a purchaser of retail installment contracts, Santander Consumer USA is liable for violations by the dealer under the FTC Holder Rule and state UDAP laws that provide for private rights of action for violating the federal prohibitions on UDAAPs. 
C. Unfair, Deceptive and/or Abusive Acts or Practices constitute UDAAPs. 
Failing to post payments timely or properly or to credit a consumers account with payments that the consumer submitted on time and then charging late fees to that consumer. 

New Jersey Retail Installment Sales Act ( RISA ) The RISA also requires that all retail installment contracts be in writing and signed by both the buyer and the seller. The contract must include all agreements between the buyer and seller related to the installment sale and all terms and conditions.

The RISA applies to service contracts even if they don't include a financing arrangement. 
Auto Lender Liability Lender liability laws in New Jersey are governed by the New Jersey Consumer Finance Licensing Act and the New Jersey Retail Installment Sales Act. These laws require lenders to treat borrowers fairly and can result in legal action if a lender doesn't act in the borrower 's best interest.

Lender liability claims Santander Consumer USA therefore neglected their duty of good faith or fair dealing to its customer / borrower or has assumed such a degree of control over the borrower that it assumes a fiduciary duty. 
FIDUCIARY RELATIONSHIPS Under lender liability law, lenders have a duty to treat their borrowers fairly. Lender liability laws say that a fiduciary duty exists for the lender when borrowers have faith in the lender to uphold their end of the deal when borrowers are in a position of inequality or dependence on the lender, and when the lender controls the borrowers affairs. 
Santander Consumer USA as a commercial lender failed their fiduciary duty to the borrower. 
Santander Consumer USA lender was not acting in the consumers best interest regarding the loan by : Misleading borrower Santander is liable for : misrepresent and withholding material facts from the consumer during the course of Santanders investigation into consumers CFPB and XXXX  complaint Failing to provide information about the loan Santander is liable for : failing to provide the consumer with copies and information about the loan, despite numerous requests, Delaying refunds by applying them to principal payments, Miscalculating payments and late fees, and Failing to provide consumer with all completed copies of signed sales documents relating to the vehicle purchase, despite consumers multiple requests. 
Failed to provide documented evidence of vehicle increased price of {$26000.00} to lender during investigation of CFPB consumer complaint. Lender had knowledge of the vehicle price of {$25000.00} as stated in consumer correspondence sent to lender on XX/XX/XXXX, the day after purchasing the vehicle. 
Accepting 2nd contract from dealership and presenting such contract as evidence of being the original in lender response to consumer CFPB complaint dated XX/XX/XXXX, despite having been provided with the original contract from the consumer on XX/XX/XXXX, without consumer approval or knowledge. 
Breach of Contract. - Fraud Changed the type of RISC ( from ARB to no ARB ) contract without proper communication or consumer approval or knowledge. 
Failure to update the account to reflect the accurate balance due to double billing of monthly payment, inaccurate calculations of fees, requests for all copies of loan documents associated with the vehicle purchase, & description of what the amounts represent. 

Auto finance companies may not engage in practices deemed abusive or unfair. 
Unlawful conduct in collecting a consumers debt considered unfair, deceptive or abusive practices ( a.k.a. UDAAPs ) under the Dodd-Frank Act. Santander Consumer USA violations : 1. Failure to process payments and refunds accurately and timely including, regular payments, posting a payment to a borrowers account, assessing fees such as late fees or nonsufficient funds/returned charges.

2. Assessing late or return payment fee, when servicer received the full amount due on or prior to due date.

3. Assessing and collecting late or delinquency fee on a payment where such fee is only attributable to late or delinquency fees assessed on earlier installments when the payment was otherwise the amount due for the applicable period and was paid on its due date or within the applicable grace period.

4. Failure to identify, notify, and provide transparency regarding lender financing errors on consumer account Transaction Summary page.

5. Failing to describe and provide consumer with explanation as to how and/or why errors occurred.

6. Failure to inform consumer when lenders errors have been corrected.

7. Failure to identify and provide descriptions associated with each transaction on consumer account Transaction Summary. ( Refunds for service contracts etc. ) 8. Failure to notify consumer upon receipt of such refunds or credits.

9. Failure to have a complete and detailed Transaction Summary document available in consumer account for consumer access.