Consumer complaint received 2026-03-25 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: SANTANDER HOLDINGS USA, INC.
State: SC

Complaint narrative:
I am submitting this complaint to request state review of Santander Consumer USAs handling of insurance proceeds issued for repairs to my vehicle. Santanders actions have resulted in prolonged delay, inconsistent servicing, and direct financial harm, despite my loan remaining in good standing. Following an automobile accident, XXXX issued an insurance repair check for {$6000.00}. The check was made payable jointly to Santander and myself and clearly referenced the claim number. All repairs were completed by XX/XX/year>. At Santanders instruction, I overnighted the check to their insurance processing address at XXXX XXXX XXXX, Texas. The envelope included my account number, claim information, and instructions requesting endorsement and return of the check to me or payment to the repair facility. I paid {$83.00} to overnight the check based on Santanders representation that the process would be expedited. Delivery was confirmed by XXXX and by Santander representatives. Despite the check being clearly identifiable as insurance proceeds, Santander applied the full {$6000.00} to my loan rather than disbursing it for the completed repairs. XXXX has confirmed that Santander cashed the check on XX/XX/year> and that the insurance claim is fully closed. Beginning XX/XX/year>, I contacted Santander almost daily. On XX/XX/XXXX, I was told no documentation was required and that the repair shop only needed to call to confirm repairs. The shop called within the hour and was told that everything needed had been received. I was told the same later that day. The following day I was told the opposite. I was informed that a XXXX XXXX and invoice were required, despite both the shop and myself being previously told the matter was complete. I obtained and submitted the requested documents immediately. From that point forward, Santander issued shifting and contradictory requirements. I was told the payment could not be split, then told the XXXX XXXX was incorrect, then told the documents needed multiple additional reviews, each time with new timelines imposed. I coordinated calls with the repair shop and Santander to eliminate confusion, but the funds were still not released. I was repeatedly transferred, placed on hold, and given conflicting answers about the process and expectations. Because Santander retained the insurance funds, my repaired vehicle remains inaccessible. I am accruing storage fees of {$15.00} per day and rental costs of {$40.00} per day. After 30 days, the repair shop also applies a five percent late fee, which will add approximately {$230.00} to the amount owed. These costs are a direct result of Santanders handling of the insurance proceeds, not any delay on the part of the repair facility or the insurer. My loan remains current, and I continue paying for a vehicle I can not access. Santanders actions reflect inconsistent servicing practices, failure to provide accurate information when specifically requested, and misapplication of insurance proceeds clearly intended for vehicle repair. I respectfully request that the State review Santander Consumer USAs handling of this matter, including the application of insurance funds and the resulting financial harm. I am available to provide call logs, transcripts, delivery confirmations, insurance documents, and invoices as needed. Santander also records all calls and can review and provide transcripts if needed. I am all for that as well. - They haven't reversed the deposit of the entire repair check to my account. - They haven't given a timeline or even attempted to expedite the " review process '' - Every time I call in, it's like they don't have access to any calls or notes from the previous calls. - They keep saying the XXXX is incorrect... I've sent it in several times. Some reps confirm it's updated and processing and then the next reps turn around and say it's not there I need to resend... - They keep saying the invoice has to match the insurance scope ( Different shops did different repairs, AND have already been paid out, so that's simply not possible. ( Insurance approved these repairs ) ). - They keep transferring me around and not giving full answers. - They have applied the funds incorrectly and it is apparent they have no intention of fixing this error. They also received the XXXX and invoice/work order DIRECTLY from the shop in addition to me sending it also. If I have to secure a loan to get my car back from this shop AFTER I correctly went through Insurance and was paid the funds I am owed due to my selected coverage and the adjusters assessment of the damage, took it to shops to get it repaired within insurance 's budget to avoid the supplementing process, and the BANK won't release the funds? I will want them to cover the finance fee 's and or interest/early payoff that would be associated with that loan as well.

Company response to consumer: Closed with explanation