Consumer complaint received 2024-01-03
Product: Vehicle loan or lease — Loan
Issue: Repossession — Deficiency balance after repossession
Company: Mercedes Benz Financial Services (NJ)

Dear Consumer Financial Protection Bureau, I am writing to formally file a complaint against Mercedes-Benz Financial regarding multiple apparent breaches of contract and inaccuracies in credit reporting. The concerns outlined below pertain to three specific contracts : the First Class Premium Protection Service Contract and Application with Deductible, the Gap Contract, and the extended warranty contract. 
* First Class Premium Protection Service Contract : * Mercedes-Benz Financial reported a repossession with an outstanding balance of {$16000.00}. 
* Contract terms state that refunds due to repossession may be applied directly to the XXXX XXXX XXXX unless proof of payment in full is provided. 
* Cancellation and Refund Terms : * The First Class Premium Protection Contract mentions a 10 % penalty for refunds not paid within forty-five ( 45 ) days. 
* If the Agreement is canceled within 60 days, a full refund is eligible, and after 60 days, a pro-rated refund method applies. 
* No fee is supposed to be charged for cancellation. 
* Gap Contract : * The Gap Contract terms highlight cancellation eligibility within 60 days for a full refund. 
* Refunds due to repossession may be paid directly to the XXXX XXXX XXXX unless proof of payment in full is provided. 
* Extended Warranty Contract : * Provide details regarding the extended warranty contract, including any terms related to repossession and cancellations. 
* Attach relevant excerpts from the extended warranty contract. 
* Eligibility Limitations : * The eligibility limitations section mentions that the Agreement shall be void if the Finance Agreement or vehicle is found to be ineligible.

* If a Total Loss occurs and the Finance Agreement or vehicle is ineligible, the Agreement is void, and a full refund is issued.

Furthermore, I have observed potential violations of New Jersey UCC Article 9, Section 12A:9-614, regarding the post-repossession notice, and Article 9, Section 12A:9-610, concerning the commercially reasonable sale of the repossessed vehicle. 
* Post-Repossession Notice : * Pursuant to New Jersey UCC, I assert that the post-repossession notice issued by Mercedes-Benz Financial Services lacked timeliness and essential information about my right to redeem the vehicle. I demand a detailed account of the post-repossession notice, encompassing its issuance date, content, and delivery method. 
* Commercially Reasonable Sale : * I express reservations concerning the commercially reasonable nature of the sale of my repossessed vehicle. I solicit comprehensive documentation elucidating the sale process, including the sale method, efforts exerted to secure the optimal price, and the final sale amount. I have attached the evidence for review as the car is being sold for more than what I owe allegedly, I am entitled to receive the surplus. 
I also assert my rights to any surplus funds resulting from the sale of the repossessed vehicle, as it is my understanding that, in accordance with applicable laws and the terms of the financing agreement, the lender is required to return any surplus amount to the borrower. I request a thorough examination of this aspect during the investigation, including verification of the surplus amount, if any, and the process for its return as per the terms of the agreement and relevant legal requirements. 
I kindly request a full investigation into these matters, including compliance with XXXX XXXX standards. Please notify me of the results of the investigation. If no resolution is reached, I am prepared to involve legal representation. 
Thank you for your prompt attention to this matter.