Consumer complaint received 2024-09-12
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Problem with signing the paperwork
Company: Porsche Financial Services, Inc. (MD)

I am writing to file a formal complaint against Porsche Financial Services ( PFS ) for numerous violations of federal and state regulations. PFSs failure to meet its obligations has resulted in significant financial, emotional, and reputational harm to me as a consumer. I have outlined below the key areas where PFS has violated my consumer rights, citing specific laws and regulations that apply. 
1. Failure to Provide Timely Notification of Loan Denial ( Violation of 12 CFR Part 1002 - Regulation B, 1002.9 ) : PFS was legally required to notify me within 30 days of any decision regarding my loan application, per 12 CFR Part 1002 ( Regulation B ). Despite this, PFS failed to notify me within the 30-day period, causing unnecessary confusion and distress. This inaction constitutes a clear violation of 1002.9, which mandates creditors to provide prompt notification of credit decisions.

2. Misrepresentation of Loan Information ( Violation of UCC 2-210 and 3-416 ) : PFSs representative, XXXX XXXX XXXX, initially stated that there was no note on my account indicating that the loan was denied due to my signature. However, in its response to CFPB Complaint ID XXXX, PFS later claimed that it does not accept signatures without recourse. This conflicting information demonstrates a failure to provide accurate and transparent information and violates XXXX XXXX, which deals with warranties and representations concerning negotiable instruments. 

3. Breach of Contract and Deceptive Practices ( Violation of the Truth in Lending Act - 15 U.S. Code 1601 ) : PFSs sudden change in position regarding my loan after initially accepting the application constitutes a breach of contract and may violate the Truth in Lending Act ( TILA ). 15 U.S.C. 1601 emphasizes the importance of transparency and consistency in credit terms. PFSs failure to honor its initial commitment and subsequent misleading communications represent a breach of this responsibility under TILA.

4. Failure to Disclose Terms of Contract ( Violation of 12 CFR Part 226 - Truth in Lending ( Regulation Z ) ) : PFS failed to provide me with a complete and accurate copy of my signed contract, which is a violation of 12 CFR Part 226 ( Regulation Z ). This regulation ensures that consumers are given complete and clear information regarding credit terms. By withholding the contract and failing to disclose key terms, PFS has not only breached transparency requirements but also caused further emotional and financial stress.

5. Failure to Investigate Complaints Adequately ( Violation of Fair Credit Reporting Act - 15 U.S. Code 1681 ) : The Fair Credit Reporting Act ( FCRA ) imposes obligations on creditors to investigate complaints promptly and provide accurate information to consumers. PFSs failure to explain discrepancies between its internal communications and its response to the CFPB complaint raises questions about its commitment to complying with the FCRA. Why has PFS not provided a satisfactory explanation for its contradictory statements regarding the refusal of the loan?

6. Unfair and Deceptive Practices ( Violation of Federal Trade Commission Act - 15 U.S. Code 45 ) : PFSs handling of my auto loan, including inconsistent communications, rejection of a legally accepted signature, and failure to provide timely notifications, may constitute unfair and deceptive practices under the Federal Trade Commission Act ( 15 U.S.C. 45 ). The lack of transparency and proper communication has caused significant harm and confusion, which suggests that PFSs practices are both unfair and deceptive.
7. Failure to Address Emotional Distress and Harm ( Violation of Consumer Financial Protection Act - 12 U.S. Code 5531 ) : PFSs mishandling of the loan process has caused considerable emotional distress, impacting my well-being. Under the Consumer Financial Protection Act ( 12 U.S.C. 5531 ), PFS is obligated to avoid unfair, deceptive, or abusive acts or practices. Their failure to provide clear communication, inconsistent responses, and negligence in addressing my concerns constitutes abusive practices under this provision.

8. Failure to Communicate During Key Loan Stages ( Violation of UCC and Duty of Good Faith - UCC 1-304 ) : PFSs refusal to communicate during critical loan stages and the lack of transparency in addressing the issues raised demonstrates a breach of the duty of good faith and fair dealing, as required under UCC 1-304 . This breach is evident from their refusal to engage when the issue was at its most urgent, only to respond after a formal complaint was filed with the CFPB.

9. Deceptive Practices Regarding Contract Assignment ( Violation of UCC 2-210 ) : PFSs refusal to communicate during the contract funding stage and subsequent denial of responsibility while simultaneously approving the application demonstrates their failure to meet obligations under UCC 2-210 , which governs the assignment of contracts. PFS assumed rights and obligations by initially approving the loan, and their sudden reversal and refusal to communicate constitutes a breach of those obligations. 

I look forward to your prompt attention to this matter and your investigation into these serious violations.