Consumer complaint received 2025-03-17 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: SECURITY FINANCE CORP
State: NC

Complaint narrative:
I am filing this complaint against Professional Financial Services ( PFS ) for financing a fraudulent and unlawful auto loan that included a deceptive and unnecessary GAP insurance charge and an undisclosed dealer fee. PFSs actions violate multiple federal and state consumer protection laws, including the Truth in Lending Act ( TILA ), the FTC Act, and Tennessee state laws on unfair lending practices. Given the fraudulent nature of this loan, I am demanding that the loan be voided in full, and that PFS pursue XXXX XXXX XXXX XXXX for repayment instead of holding me liable for a contract obtained through deception.

PFS failed in its duty as a responsible lender to detect, prevent, and refuse financing of fraudulent charges that should never have been included in the first place. It is illegal for a lender to knowingly finance unnecessary add-ons that provide no value to the consumer. 

Reference CFPB Complaint ID : XXXX ( Filed Against XXXX XXXX XXXX XXXX XXXX Issues & Violations 1. PFS Funded a Fraudulent Loan That Included an Unlawful GAP Insurance Add-On XXXX XXXX XXXX XXXX illegally added a {$1000.00} GAP insurance policy to my loan despite my positive equity and full-coverage insurance. 

GAP insurance should NEVER have been offered or added to this loan because : o My loan-to-value ratio was well below 100 %, meaning GAP coverage had no financial purpose.

o I provided proof of full-coverage insurance before leaving the dealership, eliminating any need for GAP insurance.

PFS financed this illegal charge, violating the Truth in Lending Act ( TILA, 15 U.S.C. 1601 ) and Regulation Z ( 12 C.F.R. 1026.18 ). 2. PFS Financed an Undisclosed {$490.00} De
aler Fee, Plus Interest XXXX XXXX XXXX XXXX charged an undisclosed dealer fee of {$490.00} that was NOT included in the advertised vehicle price. 

This fee, along with GAP insurance, was financed into the loan, meaning PFS enabled deceptive pricing practices.

Total Cost of the Dealer Fee Over 60 Months : o Principal Dealer Fee : {$490.00} o Total Interest Over 60 Months ( 15.99 % APR ) : {$390.00} o Total Cost Paid for the Dealer Fee : {$880.00} XXXX. The Total Cost of Fraudulent Charges Financed by PFS Fraudulent GAP Insurance Charge : {$1700.00} ( Including Interest ) Undisclosed Dealer Fee : {$880.00} ( Including Interest ) Total Cost of Deceptive Add-Ons Financed by PFS : {$2600.00} PFS should have never allowed these charges to be financed. Instead, it profited from an unlawful loan structure. 

4. PFS Failed to Provide a Copy of My Loan Agreement in Violation of Federal Law PFS has not mailed me a copy of my loan agreement and has no desktop-accessible portal for consumers to retrieve it.

A mobile app is NOT a reasonable or legally sufficient method of delivery for essential financial documents. 

I have repeatedly requested my loan agreement in a proper, accessible format, but PFS has refused to comply.

This violates the TILA disclosure requirements ( 15 U.S.C. 1638 ), which mandate that lenders provide clear and accurate disclosures of all loan terms in a format that allows for proper consumer review. 

5. PFS Should Not Hold Me Liable for a Loan That Was Fraudulently Structured by XXXX XXXX XXXX XXXX Lenders are responsible for ensuring that the loans they finance comply with federal and state lending laws. 

PFS failed to perform due diligence and blindly funded a loan that included fraudulent and deceptive charges.

Under the FTC Holder Rule ( 16 C.F.R. Part 433 ), a lender can not demand repayment on a contract obtained through fraud or deception. Instead, the lender must seek damages from the seller XXXX XXXX XXXX XXXX XXXX ), not the consumer. 

I am demanding that PFS void this loan entirely, immediately transfer the vehicle title to me, and pursue XXXX XXXX XXXX XXXX for repayment instead. 

Legal Violations by Professional Financial Services (

PFS ) 1. Truth in Lending Act ( TILA, 15 U.S.C. 1601 ) & Regulation Z ( 12 C.F.R. 1026.18 ) Financing fraudulent add-ons and failing to provide required loan disclosures. 2. FTC Holder Rule ( 16 C.F.R. Part 433 ) Lenders can
not enforce repayment on a fraudulent contract.

3. FTC Act ( 15 U.S.C. 45 Unfair & Deceptive Trade Practices ) Profiting from a loan that included deceptive, unnecessary fees. 

4. Tennessee Consumer Protection Act ( TCPA, Tenn. Code Ann . 47-18-104 ) Prohibits deceptive financial practices.

5. Equal Credit Opportunity Act ( 15 U.S.C. 1691 ) Failing to provide loan terms in a clear and accessible format.

6. Tennessee Motor Vehicle Commission Regulations Requires full disclosure of dealer fees in advertisements.

Company response to consumer: Closed with explanation