Consumer complaint received 2024-07-21
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: Bridgecrest Acceptance Corporation (TX)

I discovered a noticeable increase of monthly payment amounts applied to interest and decrease in principal. I called XXXX to ask and the agent, who admitted not understanding finance, a per diem dollar rate was being assessed. This was not in the contract nor could be a linear value, as any timely payment table would require. 

I escalated and received a response from XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX XXXXXXXX on XX/XX/2024. Here it was stated basically that Bridgecrest has no responsibility for the loan. 

Quote " XXXX XXXX : Bridgecrest is in receipt of your email below. Please note that Bridgecrest is the servicer of your account and is neither the originator nor the holder. We have forwarded your email regarding your contract to XXXX and encourage you to reach out to them for any questions or concerns that you may have. 

Please let us know if you have any additional questions '' I'd said below : " Per discussions, there is no contract point that binds parties to a rate, or derived, calculable amount, to conclude a per diem of {$9.00} per day for each day from the date of the previous month 's payment. '' Then in response to XXXX XXXX : Dear XXXX, My appreciation for responding. 

I do hope you and Bridgecrest will recognize the significance of the underlying issue, it's breadth, depth, and potential impact if not immediately met with proposed and satisfactory remedy. My loan instruments are not the only ones. 

Notwithstanding the XXXX and Bridgecrest relationship in forming the language, XXXX addressing practices observed, evidenced, and conceded as fact which Bridgecrest took and continues to take as the loan servicer. And this again, despite XXXX originating the loan. 

Bridgecrest 's role as the servicer does not absolve it of legal accountability. The following highlight Bridgecrest 's culpability and potential violations of state and federal law, regardless of its status as a non-originator : As the servicer, Bridgecrest has a fiduciary responsibility to manage the loan according to the terms disclosed to the borrower. The loan agreement lacks any specific rate or calculable amount justifying a per diem of {$9.00} per day from the date of the previous month 's payment. This absence of disclosure violates the Truth in Lending Act ( TILA ), codified at 15 U.S.C. 1601 et seq., which mandates that lenders and servicers disclose all terms and conditions of credit. Bridgecrests failure to ensure this transparency breaches its legal obligations under federal law. 

Bridgecrest 's financial practices have involved the use of undisclosed terms and rates, constituting deceptive trade practices under the Texas Deceptive Trade Practices Act ( DTPA ), codified at XXXX. XXXX. & XXXX. Code XXXX et seq. The inconsistency between verbal statements and the written contract indicates a deliberate intent to mislead the borrower. As the servicer, Bridgecrest is responsible for ensuring that all communications and calculations are accurate and truthful ( XXXX. XXXX. & XXXX. Code XXXX ). 

Bridgecrest 's method of calculating and applying finance charges violates the XXXX XXXX XXXX. Specifically, the practice of charging interest on the down payment, or misapplication month to month, either of which constitutes the borrowers own cash and asset liquidity, is illegal. XXXX. Fin. Code XXXX ( b ) requires that interest must be clearly agreed upon and should not artificially inflate the principal. As the servicer, Bridgecrest is accountable for ensuring that interest calculations comply with state law. Remedies for violations include the forfeiture of principal or interest, or both, as provided under XXXX. Fin. Code 305.001. Here I will begin to seek voluntary refund as a potential mitigation avenue prior to taking more adversarial positioning.

Bridgecrest 's failure to deliver a copy of the TILA disclosures is a federal violation under 15 U.S.C. 1638. Without these disclosures, the borrower can not determine the true interest rate, undermining their ability to make informed financial decisions. As the servicer, Bridgecrest must ensure these disclosures are provided.

Bridgecrests use of undisclosed rates and charges constitutes a material breach of contract under Texas law. Even as the servicer, Bridgecrest is bound to administer the loan according to the terms set forth in the contract. The clandestine methodologies employed by Bridgecrest in the deployment of these terms violate the fundamental agreement between the borrower and the lender. Remedies for breach of contract in Texas may absolutely cause for surrender of any underlying asset as fully outlined in XXXX. XXXX. & XXXX. Code XXXX. 

Bridgecrest 's illegal practices will necessitate reporting to the appropriate financial regulators, including the Consumer Financial Protection Bureau ( CFPB ) under 12 U.S.C. 5491 et seq. for federal violations and the Texas Office of Consumer Credit Commissioner under Tex. Fin. Code 14.201 et seq. for state violations.

Bridgecrest can not evade accountability through its role as the servicer ; complicity in these practices, whether due to internal directives or failure to act, does not exempt it from legal consequences.

Awaiting your next reply and a firm avenue of resolution prior to escalation.

If you have questions, you're welcome to call.

If you need further information or documents in support, I'm glad to share preemptively.

Sincerely, Justin Long '' I must conclude now that the terms being used by the Bridgecrest financial department are not disclosed to the borrower. This is against the law, first and foremost, and your duty should be to report this conduct to financial regulators. 
Based on the only clause I can find, the verbal provisions are incorrect, and the contract is written such that it will exceed the sales price in time. This violates its own terms and I am obligated not to pay. Since I am aware the contract is illegal, I won't be complicit. 
Such a contract is not viable or enforceable in the State of Texas or elsewhere I'm aware.

You ( Bridgecrest ) are on notice for failure to deliver a copy of " TILA '', or the Truth in Lending disclosures. This is a federal violation of consumer protection law. This was said to be delivered but I state it never was, or can be, when the *true* interest rate can not be known.

The below language is both inconsistent with verbal explanation and considered deceptive trade. Complaints to be filed with the appropriate agencies barring timely and proper resolution. 
" We will figure the XXXX XXXX by applying the true daily earnings method, as defined by the XXXX XXXX XXXX. Using this method, the XXXX XXXX will be figured by applying the daily rate to the unpaid portion of the Amount Financed for the number of days the unpaid portion of the XXXX XXXX is outstanding. The daily rate is XXXX of the contract rate. The unpaid principal balance does not include the late charges or returned payment charges, if any. '' I have on record the Bridgecrest financial division stating that there is a daily dollar rate, which is cumulatively applied to interest each term ( monthly or thereabouts ). This rate was stated first to be {$9.00}, then the senior financial person corrected to say the rate is a per diem of {$9.00}. The rate cycle is initiated, or " restarts '', upon clearing of the previous payment remittance. 
Such a rate could not be fixed, as it is a factor of the *remaining* balance, which presumably, is an ever decreasing amount. I submit that Bridgecrest does not intend to lower the principal and is committing acts deliberately intended to preclude principal reduction, also illegal. 
The total sale price for which you are assessing interest includes my down payment. This is a feature of charging interest on my cash used and since deposited. This is illegal. 
I never received a TILA, or XXXX XXXX, as set forth in the General Terms. 

It is stated, " We do not intend to charge or collect, and you do not agree to pay, any finance charge or fee that is more than the maximum amount permitted for this sale by state or federal law. If you pay a finance charge or fee that exceeds that maximum amount, we will first apply the excess amount to reduce the principal balance and, when the principal has been paid in full, refund any remaining amount to you. '' " You '' to mean " Bridgecrest '' : 1. You do not state this will not happen.

2. You do not include definitions for " finance charge '' or " interest '', so the reasonable person doctrine applies.

3. The payment trajectory will cause violation of state and/or federal law unless there is a contract modification. 
4. Because of point 3, I can not remit payments. It is a contractual obligation to withhold payment. '' I have never heard more from Bridgecrest.