Consumer complaint received 12/18/2017 about Credit reporting, credit repair services, or other personal consumer reports (Credit reporting) with SANTANDER CONSUMER USA HOLDINGS INC. (OH).
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint: I opened an auto loan account with Santander Consumer USA in XX/XX/XXXX for a term of 60 months which was due to mature in XX/XX/XXXX. During the term of my loan I routinely made payments in excess of the {$180.00} payment amount. The excess monies paid on my loan were never applied to the principal balance as requested but were deducted from the following months payment enabling Santander to continue to accrue daily interest on the loan amount. This continued for the duration of the loan, based on this pattern of behavior I did not make payments for the months of XXXX and XX/XX/XXXX as I was eight months ahead on my scheduled payments. I paid the remaining  loan balance of {$440.00} in XX/XX/XXXX and paid off the vehicle in full. I now have the title to the vehicle in hand. 

Santander reported to the credit reporting agencies that I was 90 days past due on my loan payments destroying my credit score and causing me irreparable harm. I had one creditor close my credit card account completely and another reduce my credit limit from {$900.00} to {$100.00}. 

I contacted Santander repeatedly to no avail and in fact more than one supervisor with Santander confirmed that they in fact DO NOT apply any extra payments to principal balances but routinely deduct from the following months payment. Yet defended that they were correct to report me with late payments. This practice has allowed Santander to fraudulently continue to collect interest from it 's customers who have paid ahead on their accounts. I disputed the incorrect reporting with the credit reporting agencies and the company continued it 's stance with the credit reporting agencies that I was late on my payments despite the fact that I paid off my loan 8 months prior to the maturity date. 

Santander CAN NOT have it both ways. Either they apply any extra money in car payments to the principal OR they apply it towards the next months payment. In my case they have not only charged me additional interest by NOT applying my additional payments to the principal but have ALSO ruined my creditworthiness by reporting my payments were late when the loan was paid off early. Santander is known for it 's high risk loan practices to people with low or no credit history. I further submit that by reporting erroneously to the credit agencies Santander deliberately affects the creditworthiness of consumers negatively thereby creating repeat business for themselves which is reprehensible and highly unethical. I initially trusted Santander to be a reputable company but now I question everything about my loan with them and I wonder if daily interest is even legally allowable for car loans. My frustrations were heightened by trying to speak to people who had little to no knowledge or understanding of finance and had a very difficult time speaking the English language. Contacting the corporate office was impossible as well they just continued to direct me back to customer service who could not help me. I was told a month ago that they had " escalated '' my issue and that someone would call me back, to date I have not received any contact from anyone. 

I recently XXXX my only daughter and I have been financially struggling while trying to cover XXXX expenses and to buy her a XXXX due to a delay in the life insurance payout. The reduction and closing of my various credit accounts ( that were in perfect standing ) has caused me an extreme amount of undue stress and suffering on top of my deep XXXX from this XXXX and it is inexcusable. Please help they have ruinied me!

Company response to consumer: Closed with explanation