Consumer complaint received 2023-02-16
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Fraudulent loan
Company: Bridgecrest Acceptance Corporation (AZ)

Re : Request for Discharge of Obligation and Penalty for Violation of the Arizona Consumer Loan Act Dear Sir/Madam, I am writing to bring to your attention the violation of the Arizona Consumer Loan Act ( A.R.S. 6-601 et seq. ) in relation to the auto loan agreement I entered into with your dealership on XX/XX/2023. Pursuant to the provisions of the Arizona Consumer Loan Act, I am entitled to a right of rescission within three business days of the contract signing. However, your dealership failed to provide me with written notice of my right to rescind the loan, which constitutes a violation of the provisions of the act.

I respectfully request that you discharge my obligation under the auto loan agreement and impose a penalty for the violation of the Arizona Consumer Loan Act. The act provides that if written notice of the right of rescission is not provided to the consumer, the obligation of the consumer under the agreement is null and void, and the consumer is entitled to receive a penalty for the violation of the act.

Pursuant to the Arizona Consumer Loan Act ( A.R.S. 6-601 et seq. ), the right of rescission for auto loans in XXXX, Arizona, is governed by the act. Under the act, a consumer has the right to rescind a consumer loan, including an auto loan, within three business days from the date the loan agreement is executed. The right of rescission allows the consumer to cancel the loan and return the borrowed funds without any penalty or obligation.

The lender is obligated to provide the consumer with written notice of the right of rescission, which must be given either at the time the loan agreement is executed or by mail within one business day after the loan agreement is executed. The notice must include a statement of the consumer 's right to cancel the loan and the date by which the rescission must be exercised. The right of rescission may not be waived by the consumer, and the lender is prohibited from requiring the consumer to waive this right.

I hope that this matter can be resolved promptly and without the need for legal action. However, if the situation is not resolved to my satisfaction, I will be forced to seek legal remedy and compensation for any damages incurred as a result of the violation of the Arizona Consumer Loan Act.

Official interpretation of 23 ( b ) ( 1 ) Notice of Right To Rescind 1. Who receives notice. Each consumer entitled to rescind must be given two copies of the rescission notice and the material disclosures. In a transaction involving joint owners, both of whom are entitled to rescind, both must receive the notice of the right to rescind and disclosures. For example, if both spouses are entitled to rescind a transaction, each must receive two copies of the rescission notice ( one copy to each if the notice is provided in electronic form in accordance with the consumer consent and other applicable provisions of the E-Sign Act ) and one copy of the disclosures.

2. Format. The notice must be on a separate piece of paper, but may appear with other information such as the itemization of the amount financed. The material must be clear and conspicuous, but no minimum type size or other technical requirements are imposed. The notices in appendix H provide models that creditors may use in giving the notice.

3. Content. The notice must include all of the information outlined in Section 1026.23 ( b ) ( 1 ) ( i ) through ( v ). The requirement in 1026.23 ( b ) that the transaction be identified may be met by providing the date of the transaction. The creditor may provide a separate form that the consumer may use to exercise the right of rescission, or that form may be combined with the other rescission disclosures, as illustrated in appendix H. The notice may include additional information related to the required information, such as : i. A description of the property subject to the security interest.

ii. A statement that joint owners may have the right to rescind and that a rescission by one is effective for all.

iii. The name and address of an agent of the creditor to receive notice of rescission.

4. Time of providing notice. The notice required by XXXX ( b ) need not be given before consummation of the transaction. The creditor may deliver the notice after the transaction is consummated, but the rescission period will not begin to run until the notice is given. For example, if the creditor provides the notice on XX/XX/XXXX, but disclosures were given and the transaction was consummated on XX/XX/XXXX, the 3-business day rescission period will run from XX/XX/XXXX. 
2 ) Proper form of notice. To satisfy the disclosure requirements of paragraph ( b ) ( 1 ) of this section, the creditor shall provide the appropriate model form in appendix H of this part or a substantially similar notice.