Consumer complaint received 2020-12-24
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: CAPITAL ONE FINANCIAL CORPORATION (IA)

My issue has to do with a car dealership and a financialinstitution who in my mind, at a minimum, are in collusion with each other concerning potentially predatory lending. 

I have copies of almost all the correspondencewith XXXX XXXX XXXX if needed, I also have most of the text messages between myself and XXXX XXXX who was the salesman at XXXX. 

On XX/XX/XXXX I received the first emails stating I was Pre-Approvedfor a loan from XXXX XXXX, XXXX, XXXX and XXXX, the offer was supposedly good between XX/XX/XXXX and XXXX. I selected to viewvehicles I believe and you are required to provide your name and phone number. I started receiving emails, texts and phone calls almost immediately. I was contacted by a salesman by the name of XXXX until XX/XX/XXXX which was 5 days past the sale date and I never heard from him again. 

After XX/XX/XXXX I continued to attempt to contact him via emails and I also called the dealership twice to see if XXXX XXXX was there or was an employee I was told no. XX/XX/XXXX was the last time I attempted to reach XXXX XXXX and it was by email. I did not follow up and considered it a dead issue. 

On XX/XX/XXXX I received an email from Capital One 'reminding me ' that my pre-approval was good till XX/XX/XXXX. 

On XX/XX/XXXX I received a total of 4 emails from Capital One for various reasons including one to 'Pre-qualify ' as it would not affect my credit score and would allow me to 'build my own deal ' if I was approved. I did go through the pre-qualifying steps and then received 3 more emails requesting that I upload documents, one being proof of monthly income. 
I called Capital One and asked why they would need any of my information since I was already 'pre-approved ' and they have all of my information anyway otherwise how would they determine if I was eligible to be 'pre-approved '. I then received yet another email requesting that I upload documents. 

XX/XX/XXXX I received another email from Capital One saying I had been 'pre-qualified and I was 'Ready to Shop '. 

They have a tool called the 'XXXX XXXXUntil your pre-qualification expires, you have access to these exclusive benefits : See your real rate and monthly payment on each car while you shop. Build your deal to find what works best for you and your finances. Be prepared when you visit the dealership with your Offer Summary in hand. 

XX/XX/XXXX I received another email from Capital One saying I had till XX/XX/2020 to take advantage of my 'pre-qualification ' status before it expires. 

XX/XX/XXXX, another email from Capital One reminding me that my offer expires soon. 

XX/XX/XXXX I received another email from Capital One, this time pigeonholing me to XXXX XXXX although my new offer didn't expire till XXXX XXXX.Hi XXXX, Your offer is ready. Now, you just need to find the right car. Weve alreadypreapprovedyou for {$4000.00} to {$35000.00} in auto financing. Shop for a car at any of these dealerships before your offer expires onXXXX XXXX, XXXX XXXX XXXX XXXX ... XXXX Hopefully you notice where it tells me to shop at any of these dealerships, there's ONE, and it's XXXX. There's a box youcan check to find other dealers participating and still my ONLY option was XXXX XXXX. 

In these emails, if you want to even view automobiles that are available, you are required to click on the link and provide your information otherwise you can not move forward. 
I received yet another email on XX/XX/XXXX and it reads as follows .... 
Use your offer during the Pre-Approval Sale at XXXX XXXX. XXXX, Thanks for registering for the upcoming sale at XXXX XXXX. Weve forwarded your info to the dealership. Connect with the dealership on the phone or online.I could care less if Capital One says they are auto generated emails and you have to opt out in order to not receive them anymore, I did opt out and I received another email today, XX/XX/XXXX and I haven't been in contact with Capital One or XXXX since XX/XX/XXXX. 

You can see how both of these companies operate because assoon as I gave in and registered with XXXX, almost immediately after submitting to reviewvehicles I was contacted by email, text and phone from a salesperson by the name of XXXX XXXX. I spoke with him via email, phone and text and he was requesting that I put in an application and I expressed my hesitation in doing so as I've been through this before. I stated many times that I only want to use Capital One since I'm already approved through them, I was leery as he made it sound like it was already a done deal and all I had to do was submit an application with XXXX, I have his email telling me this ' Once we receive this we will tie it to your Capital One pre approval and go forward from there. ' I did not complete an application till XX/XX/XXXX at noon with the knowledge that he was not working that day. 

XX/XX/XXXX my email box was inundated with emails from XXXX XXXX and XXXX about all of the hard hits that have been done on my credit by XXXX XXXX while XXXX understood all along that I only wanted to work with Capital One. 

XX/XX/XXXX I received an email from XXXX XXXX from XXXX asking that I send him proof of income. I informed him that I previously submitted that information to XXXX, I sent them everything and more before the end of the day. I asked XXXX about the {$250.00} I was to receive for making a purchase online and he didn't know anything about that as he was 'new '. 

They continued to do hard hits on my credit on the XXXX, XXXX, XXXX yet in between all that time I never heard from anyone until I sent XXXX a 'what kind of business do you run email on XX/XX/XXXX, I heard back from XXXX XX/XX/XXXX informing me that he had passed my file on to who he didn't mention. I tried to contact XXXX again later that evening and did not hear back from him yet again. 

XX/XX/XXXX I received an email from XXXX XXXX who is apparently the finance director for XXXX stating that she would be taking over at this point to get me financed. We had talked on the phone and she told me she would get back to me that afternoon/evening. This is what I received after 42 days of trying to deal with XXXX. 

Here is what I have worked with the banks. I was told you were looking at being at a {$200.00} payment, the only problem I am having with that is with that price point and credit, my term and carry is limited, also looking like they would require {$1000.00} down. I can look at a certified vehicle, however payments would be closer to {$300.00} a month. Let me know if you could be flexible with the cash down or payment and I can put something together for you. 

I replied to her nicely requesting that she have the General Manager call me. That was 6 days ago now and I'm still waiting on the call. 

At this point I can't go to another dealer because my credit was hit so many times, even though I didn't have great credit in the first place, it would be impossible for me to be financed unless I go to a Buy Here, Pay Here lot. 

I could not for the life of me understand why I was continually being sent to XXXX XXXX XXXX, now I understand. They want to have complete control over your every step along the way, including the vehicles they make available to you, the down paymentrequired, what your interest rate will be, the length and terms of the loan including but not limited to your monthly payment and tax & license. 

Capital One doesn't help by steering this customer to one dealer obviously XXXX which gives you zero leverage. 

I called Capital One many times asking questions, one of my questions was 'what good is the 'Build your own offer ' if you don't allow me to build one '?

I also asked 'why if you state that you can loan me {$21000.00}, yet I'm only asking for {$5000.00} to {$7000.00}, then why would I need to give a {$1000.00} down payment to you? ' I explained that they ( Capital One ) were pigeonholing me into purchasing cars that barely meet they're own requirements just so you charge more in interest or a down payment.

That's right up there with predatory lending.

This program if that's what you want to call it will have limitations obviously and is mainly for lower income buyers that may not have the best credit, their earnings are lower than others and for those who can only afford a smaller down payment, but sending me to one dealer and you can't really use the 'Build your own Offer ' because it will stop you if you don't meet the requirements for any given vehicle. 

The vehicle must have less than XXXX miles on it, however, the vehicles you have to choose from, the majority are very near or are already over XXXX miles. The year and make also figure into whether you might be able to work a deal, yet again, it's like cattle being led to XXXX. 

In my case, not only am I beinglimited to the one dealer, who has no desire to help me, I didn't even get a chance to talk to them about any of the vehicles they had to offer. Not once was I told anything by XXXX. How much morelimited in vehicles could it possiblybe for me? I can answer that, I didn't have an option. 

If you don't have a vehicle to trade in, you are almost required to put a downpayment of {$1000.00}. 

The more mileage on the car the less of a guarantee of a loan and/or you are required to put even more money down. 

The information below is straight off their terms and conditions. 
Shorter financing terms will be required for higher mileage vehicles.Down Payment may be required for some applicants. If the financing terms you include in your application are inconsistent with our financing policies, we may provide you a financing option that complies with our standards. Offer is valid for vehicles within the last 10 model years. Vehicle mileage must be less than XXXX.

My response to all of this in two words. Predatory lending.