Consumer complaint received 2025-09-03 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: FC HoldCo LLC
State: CA

Complaint narrative:
SUBJECT : Complaint Against XXXX XXXX XXXX for Fraudulent Loan Accounting, False Statements, and Unlawful Practices To Whom It May Concern : I am submitting this formal complaint against XXXX XXXX XXXX XXXX for fraudulent loan accounting, false reporting to regulators, and predatory lending practices. I am requesting an immediate investigation and regulatory enforcement action. 


-- - XXXXXXXX XXXX XXXX  I entered into a retail installment contract with XXXX XXXX XXXX in [ Year ] for an automobile loan. 

On XX/XX/XXXX and XX/XX/XXXX, XXXX claimed that XXXX separate payments of {$2900.00} were applied and reversed for insufficient funds. 

In its written response to my prior CFPB complaint, XXXX stated : XXXX XXXX records confirm, however, that repeated payments of {$2900.00} were applied and reversed on those days for insufficient funds. 



Golden XXXX XXXX XXXX, my financial institution, issued a certified letter confirming : XXXX We have no record of any transaction from Flagship Credit Acceptance LLC being processed or reversed on XX/XX/XXXX or XX/XX/XXXX. 



Golden XXXX further confirmed that no payment attempt was ever made because my bank account was never on record with XXXX. 


This proves XXXX fabricated payment activity, falsified insufficient funds reversals, and then used these false records to inflate my loan balance with late fees, penalties, and other charges exceeding {$14000.00}. 


-- - XXXX. WHY THIS IS FRAUD Flagships actions are not simple errors ; they are knowing false statements to a consumer and a federal regulator, constituting : Mail and Wire Fraud under 18 U.S.C. 1341, 1343 XXXX transmitted false payment data and correspondence across state lines via mail and electronic communication. 

False and Misleading Representations in Debt Collection under FDCPA, 15 U.S.C. 1692e.

Unfair Practices under 15 U.S.C. 1692f, which prohibits deceptive methods to inflate a consumers balance. 

California XXXX Fair Debt Collection Practices Act, Cal. Civ. Code 1788.17, which incorporates FDCPA protections at the state level. 


XXXX. STRONG CASE LAW SUPPORTING MY COMPLAINT a ) XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) The Supreme Court confirmed that debt XXXX ( including creditors collecting their own debts in certain contexts ) are fully subject to FDCPA standards, making false representations actionable. 

b XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) The XXXX XXXX ruled that false statements in debt collection communications are strict liability violations of the FDCPA. Flagships statement that payments were reversed for insufficient fundswhen no attempt was madeis a textbook violation. 

c ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) Held that false representations, even without intent to deceive, are illegal under FDCPA. Here, intent to deceive is evident. 

d ) XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) XXXX XXXX XXXX explained that mail and wire fraud cover any scheme to defraud involving false representations transmitted across state lines. Flagships fabricated reversals and correspondence meet this standard. 

XXXX. PATTERN OF PREDATORY LENDING BEHAVIOR Beyond the fraudulent reversals, Flagships Retail Installment Contract contains : Clauses allowing payments to be applied to interest/fees first. 

Requirements that borrowers pay even if the vehicle is destroyed or stolen. 

Force-placed insurance at inflated costs. 

Broad default definitions allowing repossession without court oversight. 

A mandatory arbitration clause restricting legal recourse. 
While these clauses may not be illegal alone, combined with fabricated accounting entries, they create a scheme of predatory lending designed to trap borrowers in inflated debt.

-- - 5. EVIDENCE ATTACHED I am attaching the following documentation : 1. Flagships letter to me and the CFPB ( showing false claims of reversals for insufficient funds ).

2. Golden 1 Credit Unions certified letter ( confirming no payment attempts were made and my account was never on record ). 


XXXX. Flagships official loan payment history, which displays these false reversal entries. 




-- - XXXX. REQUEST FOR RELIEF I respectfully request the CFPB to : 1. Conduct a full investigation into XXXX  XXXX XXXX accounting and reporting practices. 


2. Order XXXX  to remove all fraudulent charges and fees ( at least {$14000.00} ) and correct my balance.

3. Require XXXX  to issue written correction letters to credit bureaus and all agencies where they submitted false data. 


XXXX. Pursue civil penalties and enforcement actions for fraudulent and predatory practices. 


XXXX. Investigate whether XXXX has a pattern of similar misconduct affecting other borrowers, as my case suggests systemic fraud. 




-- - XXXX. XXXX XXXX XXXX XXXX knowingly fabricated false reversals, lied to a federal agency, and used these lies to unlawfully inflate my balance. This is a clear violation of federal and state consumer protection laws. XXXX XXXX XXXX knowingly lied to the CFPB by claiming payments of {$2900.00} were applied and reversed for insufficient funds when my bank confirmed no such transactions were ever attempted and my account was never on record. This is fraud against both me and the CFPB, in violation of 18 U.S.C. 1001 and the FDCPA ( 15 U.S.C. 1692e ). I request full reversal of all fraudulent charges, correction of my account, removal of all negative credit reporting, and regulatory enforcement action. 


I request immediate CFPB intervention to stop these fraudulent practices, protect other consumers, and hold XXXX accountable. 

Thank you for your time and attention to this matter. 

Respectfully, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation