Consumer complaint received 2025-05-29 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Mercedes Benz Financial Services
State: CA

Complaint narrative:
This is a formal demand for deletion of the repossession notation and alleged deficiency balance on my credit report. I am disputing the validity of this repossession based on multiple legal violations under the Fair Credit Reporting Act ( FCRA ), Truth in Lending Act ( TILA ), Fair Debt Collection Practices Act ( FDCPA ), the Uniform Commercial Code ( UCC ), and applicable state laws. Your company is now on legal notice that the continued reporting and collection of this account constitutes willful noncompliance, and I expect immediate corrective action.

LEGAL BASIS FOR THIS DISPUTE & REQUIRED ACTIONS 1. FAILURE TO PROVE RIGHT TO REPOSSESS VIOLATION OF STATE REPOSSESSION LAWS Under state repossession laws ( which vary by jurisdiction ), a lender must have legal authority to repossess a vehicle. Before a repossession occurs, the lender must : Issue a Notice of Default stating the exact amount due and allowing time to cure. Provide a legally compliant Right to Cure period, if required by state law. Ensure that the repossession was conducted peacefully and legally. If your company failed to meet any of these requirements, then the repossession was wrongful and illegal, making all deficiency balances void and unenforceable. Required Action : Provide a certified copy of all required notices sent before repossession and proof that the repossession was conducted legally and peacefully. 2. FAILURE TO SHOW LEGAL CHAIN OF OWNERSHIP VIOLATION OF TILA 15 U.S.C. 1641 ( g ) I have reason to believe this debt was securitized, transferred, or sold, meaning your company may no longer have standing to report or collect on this account. Under 15 U.S.C. 1641 ( g ), lenders are required to provide written notice within 30 days of selling or transferring an account. Required Action : Provide : The Pooling and Servicing Agreement ( PSA ) showing how this debt was handled. A copy of your most recent 10-K SEC Filing , detailing how this deficiency balance was accounted for. The S-3 SEC Filing , identifying whether this repossession deficiency was securitized. All purchase and sale agreements related to this account. If you can not provide a full chain of title, then this account must be deleted immediately. 3. FAILURE TO PROVIDE A LEGALLY COMPLIANT NOTICE OF SALE VIOLATION OF UCC 9-611 & 9-614 Under the Uniform Commercial Code ( UCC ) 9-611, a lender must provide a legally compliant notice before selling a repossessed vehicle. This notice must include : The date, time, and location of the auction or private sale. An explanation of how the borrower can redeem the vehicle before sale. Additionally, under UCC 9-614, after the vehicle is sold, the lender must provide a post-sale notice detailing : The sale price of the vehicle. An itemized breakdown of how the deficiency balance was calculated. Proof that the vehicle was sold at fair market value. Required Action : Provide certified copies of the pre-sale and post-sale notices. If you can not, then this repossession was conducted illegally, and the account must be deleted immediately. 4. FAILURE TO OBTAIN FAIR MARKET VALUE VIOLATION OF FTC ACT 15 U.S.C. 45 The Federal Trade Commission ( FTC ) prohibits deceptive and unfair trade practices. Selling a repossessed vehicle for an artificially low price while attempting to collect an inflated deficiency balance is an unfair and deceptive practice under 15 U.S.C. 45. If your company sold my repossessed vehicle below fair market value, then the alleged deficiency balance is fraudulent and unenforceable. Required Action : Provide auction records proving that : The sale price was at fair market value based on comparable vehicles. The sale was conducted in a commercially reasonable manner. If you can not prove this, the deficiency balance must be deleted immediately. 5. REPORTING FALSE OR INACCURATE INFORMATION VIOLATION OF FCRA 15 U.S.C. 1681s-2 ( a ) Under the Fair Credit Reporting Act ( FCRA ), creditors are prohibited from reporting inaccurate, outdated, or unverifiable information to consumer reporting agencies. Reporting a repossession without full legal proof of compliance is a direct violation of federal law. Required Action : Provide : A full accounting breakdown proving the accuracy of the reported balance. Proof that the repossession was lawful and followed state procedures. If your company can not validate every aspect of this repossession, this account must be permanently deleted. 6. LEGAL CONSEQUENCES FOR NON-COMPLIANCE VIOLATION OF 15 U.S.C. 1681n & 15 U.S.C. 1681o If your company continues reporting this repossession after receiving this dispute, you may be engaging in willful noncompliance, exposing you to legal liability, including : Statutory damages of up to {$1000.00} per violation. Actual damages suffered due to fraudulent reporting. Punitive damages for reckless disregard of consumer protection laws.

Company response to consumer: Closed with explanation