Consumer complaint received 2025-07-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem related to refinancing
Company: SANTANDER HOLDINGS USA, INC.
State: CA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA, XXXX XXXX XXXX XXXX XXXX Consumer Financial Protection Bureau XXXXXXXX XXXX XXXXXXXX I am writing to file a formal complaint regarding my auto loan account held by Santander Consumer USA. This loan was originated on XX/XX/year>, for a used vehicle with an original principal amount of {$16000.00} and an Annual Percentage Rate ( APR ) of 29 %. As a full-time student at XXXX XXXX XXXX University and a first-time car buyer, I find myself in a situation of severe financial hardship directly caused by the predatory terms of this loan, combined with significant vehicle defects and poor customer service from the dealer. I respectfully request a substantial reduction in my payoff amount to reflect the payments I have already made and the unfair interest charged, or alternatively, a complete forgiveness of the remaining balance, with Santander arranging to pick up the vehicle by XX/XX/year>. 
The loan I obtained through Santander Consumer USA carries an extraordinarily high APR of 29 %, which is far above average rates for similar borrowers. Since the loans inception, I have made six consecutive monthly payments of {$570.00} each, totaling {$3400.00}. Despite this, my loan balance has barely decreased because the vast majority of my payments have been allocated to interest rather than principal reduction. Given this payment structure and the excessive APR, I remain severely upside down on this loan.

According to multiple recent appraisals and trade-in estimates, the current value of my vehicle is approximately {$10000.00}, a figure significantly less than my outstanding loan balance. This leaves me with a negative equity situation in which I owe thousands more than the cars market worth. This underwater loan status has trapped me in a cycle of debt with no clear end in sight, as the interest compounds at a rate that makes meaningful progress toward loan payoff. 
As a full-time student at XXXX XXXX XXXX University XXXX XXXX am already financially vulnerable. I lack family financial support and am balancing my academic workload with limited income from part-time work. The burden of this loan has drastically affected my ability to pay for essential living expenses such as rent, utilities, food, and educational materials. The $ 578 monthly payment, while made consistently on time, represents a substantial portion of my income, severely limiting my financial flexibility. 
The stress and uncertainty created by this loans structure are detrimental not only to my financial stability but also to my emotional well-being and academic focus. The predatory nature of this loan and the inability to reduce the principal despite consistent payments have placed an overwhelming burden on my daily life. 
Adding to the financial strain, the vehicle itself has suffered from significant operational issues since the first month of ownership. Specifically, the radio systemincluding XXXX XXXX and the USB portshas been dysfunctional. Upon raising these concerns with the dealership, XXXX XXXX Pre-Owned Superstore located in XXXX XXXX, California, I was repeatedly told that the problems were related to my personal devices rather than the vehicle. This was misleading and unhelpful. 
Subsequent investigation revealed that the dealership had failed to update the vehicles software system, which was the root cause of the malfunctioning radio and connectivity features. Attempts to get the dealer to properly service the vehicle were met with poor customer service, unresponsiveness, and dismissiveness, exacerbating my dissatisfaction and financial loss. 
It is unacceptable that a vehicle sold at a premium price with such significant defects would be supported by such inadequate dealer service. This further compounds the financial and emotional hardship I am enduring. 
The 29 % APR on this loan is alarmingly high and falls within the range commonly recognized as predatory lending practices. When I agreed to the loan, I was not fully or clearly informed of how the high interest rate would affect my monthly payments or the long-term cost of the loan. The dealership and lender did not adequately disclose that most of my payments would go toward interest rather than reducing the principal balance, effectively trapping me in a long-term financial obligation with limited chance of equity buildup. 
Such lending practices disproportionately harm vulnerable consumers like myselfyoung students and first-time buyerswho often have limited experience with credit and financing. This loan agreement, combined with the vehicle defects and poor dealer treatment, has caused me considerable financial and personal harm. 
Given the totality of these circumstances, I am requesting the following : A significantly reduced payoff amount that takes into account the payments I have already made, the predatory interest rate charged, and the vehicles current market value. This reduction would allow me to reasonably satisfy the loan without enduring further financial devastation. 


OR Complete forgiveness of the remaining loan balance, allowing me to surrender the vehicle without any further financial obligation. If this option is granted, I request that Santander Consumer USA arrange for the vehicle to be picked up no later than XX/XX/year>. 


I have been a responsible borrower by making timely payments despite the onerous loan terms. However, the structure of this loan has rendered it impossible for me to achieve financial freedom or fair ownership of the vehicle. I urge Santander Consumer USA and the Consumer Financial Protection Bureau to recognize the unfairness of this situation and assist me in finding a fair and equitable solution. 
I am willing to provide any necessary documentation to support this complaint, including proof of my full-time enrollment at XXXX XXXX XXXX University XXXX XXXX of my payment history, appraisals of the vehicles current value, and all communications with the dealership regarding vehicle defects. 
This loan and vehicle purchase have caused me undue financial hardship, stress, and frustration. It is my sincere hope that this complaint will lead to a resolution that acknowledges the predatory terms of my loan and the poor condition of the vehicle, allowing me to regain financial stability and peace of mind. 
Thank you very much for your time, attention, and assistance with this urgent matter. I look forward to your prompt response. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation