Consumer complaint received 2025-08-16 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Deficiency balance after repossession
Company: SANTANDER HOLDINGS USA, INC.
State: TX

Complaint narrative:
I am requesting a review of the service contract with Santander Consumer USA for multiple violations of state and federal law in connection with my auto loan, repossession, and post-repossession handling. Breach of Debt Cancellation Agreement paid to XXXX XXXX XXXX XXXX XXXX XXXX, Texas XXXX My original retail installment contract included a Debt Cancellation Agreement for which I paid {$840.00}. This agreement stated that in the event of total loss or theft, the remaining deficiency balance would be waived. Since the vehicle has been repossessed the DCA is no longer needed and due a refund on the unused portion of the DCA. Santander failed to notify me of the unused portion or any update on this agreement and instead pursued a deficiency balance against me, despite accepting payment for this protection. EFG MAP Add-On Product Refund Failure The retail installment contract also shows I was charged {$2200.00} for EFG MAP ( Mechanical Advantage Protection ), which was financed into the loan. Under Texas law and the products terms, if the contract is terminated early due to repossession, a pro-rata refund of the unused coverage must be issued and applied toward the loan balance. You have provided no proof that : The EFG MAP coverage was activated. Any refund of the unused portion was credited to my account. If coverage was not provided, retaining these funds violates the Texas Deceptive Trade Practices Act ( DTPA ) and constitutes unjust enrichment. If it was canceled early, failing to process a refund violates both Texas law and the coverage contract. Failure to Conduct a Commercially Reasonable Sale Under the Texas Business & Commerce Code 9.610, 9.613, and 9.614, creditors must conduct repossession sales in a commercially reasonable manner and provide a post-sale accounting. Santander has refused to provide : A bill of sale or auction receipt showing the sale price. The name of the auction company, sale date, and method. An itemized breakdown of how sale proceeds were applied to the account. -- provided this breakdown Texas Supreme Court precedent ( e.g., Greathouse v. Charter Natl Bank Southwest , 851 S.W.2d 173 ( Tex. 1992 ) ) holds that failure to prove a commercially reasonable sale eliminates any right to collect a deficiency. Possible Improper or False 1099-C Reporting If Santander has charged off the account and issued an IRS Form 1099-C under 26 U.S.C . 6050P, they are required to report accurate cancellation information to both the IRS and myself, and to update credit reporting to reflect a {$0.00} balance under the Fair Credit Reporting Act ( FCRA ). Continuing to collect on a debt after filing a 1099-C may constitute deceptive practices under the Fair Debt Collection Practices Act ( FDCPA ) and the Texas Debt Collection Act ( TDCA ). I am requesting written confirmation from Santander regarding whether a 1099-C was filed, and the date of cancellation thru CFPB complaint. Requested Resolution : Provide full documentation of the repossession sale, including bill of sale, and auction details. Honor the Debt Cancellation Agreement Provide information and status of EFG coverage Provide a copy of any IRS 1099-C issued, along with the date of debt cancellation, and update credit reporting accordingly. Cease all collection activity on the account.

Company response to consumer: Closed with explanation