Consumer complaint received 2020-09-23
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: Santander Consumer USA Holdings Inc. (NJ)

In XXXX of XXXX I purchased a XXXX XXXX from Santander Consumer USA for {$11000.00}. On approximately XX/XX/XXXX I experienced a total loss on my vehicle. At that time I had automobile insurance as well as a GAP insurance policy that was associated with Santander. During the claim process, I was advised that the payoff for my loan was {$10000.00} My auto insurance paid {$5100.00} on the balance and I was told to contact the GAP insurance to take care of the balance. I did everything that I was instructed to do and after being told by someone at the GAP insurance company a payment would be issued to take care of the remaining balance on my loan. Approximately two weeks later I called GAP to follow up on the check and was advised that they would not be paying anything on the claim. According to them, based on their calculations I had made all my payments on time, no additional interest and fees would have been charged and the car would have been paid in full with the payment from my car insurance. I advised the representative that I have no control over how they apply payments and I was under the impression GAP coverage kicked in to cover any remaining balance on my loan. 

After speaking with the GAP insurance I actually took the time to review the car payments I made to Santander and it appeared that over 97 % of the payments I made were applied to interest only, very little was applied to my principal. There was even one point for the course of an entire year that all my payments went strictly to interest only. How is the possible? I added up the payments I made from XXXX until XX/XX/XXXX and I paid approximately {$13000.00}, when you add the amount that my insurance paid there has been a total of {$18.00}, XXXX paid for the vehicle. 

I initially filed a better business complaint against the GAP insurance company ( XXXX XXXX ) as I felt as if they were not honoring the GAP contract by the answer I was given for non payment. I had a supervisor call me to explain the break down of the contract and the in actuality, the GAP contract was powered by Santander Consumer USA and had language in it to not pay the claim if any payments were late and interest was accrued on the loan. Which I feel is not fair and very misleading to customers. 

I also received a letter with the title of the vehicle stating that this lien has been paid in full. When I reached out to Santander about this and an outstanding balance I was told it was a mistake and should have been sent to XXXX. How is it the debt can be paid in full for insurance but not for the consumer? 

I made a call today XX/XX/XXXX to speak with a supervisor about a possible settlement or cancellation of the debt due to the total loss and misapplication of my payments and was told by XXXX in the customer service department that there is nothing they can do to help me. As I explained to her, I've paid {$13000.00} over the course of my loan and my insurance paid {$5100.00} for a total of {$18000.00} on an original debt of {$11000.00}. The loan is no longer secured by the collateral I would like to see if we can do something to help me out. I can not afford to pay for this loan and get a second car payment. I feel my payments were grossly misapplied and that Santander took advantage of me and I'm sure several other customers with their predatory lending practices. In addition, they constructed " GAP '' coverage that is not payable. 

Interest is continuing to accrue and what was once a {$4900.00} balance has jumped up to {$5100.00}. They do not have the consumers best interest at XXXX and despite many attempts, they do not offer any assistance. They should not be allowed to continue these predatory lending practices at the expense of consumers who were at the time down on their luck.