Consumer complaint received 2024-08-04
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Information belongs to someone else
Company: CAPITAL ONE FINANCIAL CORPORATION (FL)

I am filing a complaint regarding an auto loan I applied for with Capital One for a certified XXXX XXXX XXXXXXXX XXXX. Despite having an excellent credit score ( XXXX : XXXX, XXXX : XXXX, XXXX : XXXX ) and a stable financial history, I was assigned a 14 % interest rate. This rate is inconsistent with offers I received from other lenders, such as XXXX XXXX and XXXX XXXX XXXX, both of which offered around 7.5 %. 

During my visit to the dealership, the financial representative told me that he typically recommends Capital One for auto loans, but for some reason, Capital One placed me in " XXXX XXXX, '' a category for lower credit scores. He mentioned that this was strange and recommended I look into it further. Given my creditworthiness, I should have been classified in XXXX  XXXX, which would have resulted in a more favorable rate. The tiering system used by Capital One is not publicly disclosed but based on their reliance on XXXX 's reports and industry standards, my placement seems incorrect and unjust. 

I have an excellent credit history with no outstanding debts besides this auto loan ( about {$11000.00} ). The last auto loan I took out was about the same amount and was paid off in under 2 years. My financial profile, income, and credit responsibility should qualify me for the best available interest rates, and this should be acknowledged in the tiering process. 

I contacted Capital One several times, including their Office of the President, to seek clarification. I was repeatedly told that I could not change my credit scores ( which I repeatedly said I was not trying to do ; I take pride in my credit score ), and I was informed that their tiering process is entirely automated, with no human oversight or review. Over several days, I spent over XXXX hours on the phone trying to get this information, raising serious concerns about transparency, accuracy, and fairness. I most recently spoke with someone in the Office of the President and received the same answer. When I questioned her that there was no way for a human being to see why I was tiered how I was and review it for a possible error, she told me that is how it is and there is nothing she can do. My persistent efforts to seek clarification and understanding have not been met with a satisfactory response, which is deeply concerning. 

I also submitted a complaint to XXXX, Capital One 's third-party ethics service, but have not received any updates. I am attaching this report for your reference. 

I respectfully request that the CFPB investigate Capital Ones tiering process and transparency to ensure it aligns with fair lending practices and consumer rights. I would also like to know what information led me to a XXXX  XXXX placement and if that is accurate based on my information. If not, I would like it corrected, as I sincerely believe there was an error. 

I am specifically concerned about the following : 1.The Truth in Lending Act ( TILA ) requires lenders to provide clear and understandable information about loan terms, rates, and fees, ensuring transparency in credit transactions.

2. The Fair Credit Reporting Act ( FCRA ) requires that credit reporting agencies maintain accurate and complete information in your credit reports and provides the right to dispute errors. 

XXXX. Under the FCRA, consumers have the right to dispute inaccurate or incomplete information in their credit reports. This law requires credit reporting agencies and creditors to investigate disputes. 
4. The Equal Credit Opportunity Act ( ECOA ) supports transparency by ensuring consumers receive information about credit decisions.