Consumer complaint received 2024-02-22 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: CarMax, Inc.
State: TX

Complaint narrative:
CarMax continues to allege I owe a debt not owed. CarMax is engaged in security fraud by continuously trading on the contract which is the security being held by Carmax. According to the forensic audit that I had a XXXX specialist run this account has made over XXXX XXXX dollars and Carmax has failed to report this transaction to the SEC as required. I went over the documents that CarMax provided in the CFPB portal and no where in the contract did CarMax state that my contract would be sold to outside investors, and that it would make as much money as it did these are material facts that would have impacted the outcome of the contract. Not only is CarMax making a profit from the contract but they took money from me knowing I did not owe a debt to them lawfully which caused me damages and took money from my household. I did not agree to these terms willingly but under false pretenses. 


( a ) Except as provided in subsections ( c ) and ( d ), " negotiable instrument '' means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it : ( XXXX ) is payable to bearer or to order at the time it is issued or first comes into possession of a holder ; ( XXXX ) is payable on demand or at a definite time; and ( XXXX ) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain ( i ) an undertaking or power to give, maintain, or protect collateral to secure payment, ( ii ) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or ( iii ) a waiver of the benefit of any law intended for the advantage or protection of an obligor. 

( b ) " Instrument '' means a negotiable instrument. 

( c ) An order that meets all of the requirements of subsection ( a ), except paragraph ( XXXX ), and otherwise falls within the definition of " check '' in subsection ( f ) is a negotiable instrument and a check. 

( d ) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article. 

( XXXX ) An instrument is a " note '' if it is a promise and is a " draft '' if it is an order. If an instrument falls within the definition of both " note '' and " draft, '' a person entitled to enforce the instrument may treat it as either. 

( f ) " Check '' means ( i ) a draft, other than a documentary draft, payable on demand and drawn on a bank or ( ii ) a cashier 's check or teller 's check. An instrument may be a check even though it is described on its face by another term, such as " money order. '' ( g ) " Cashier 's check '' means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank. 

( h ) " Teller 's check '' means a draft drawn by a bank ( i ) on another bank, or ( ii ) payable at or through a bank. 

( i ) " Traveler 's check '' means an instrument that ( i ) is payable on demand, ( ii ) is drawn on or payable at or through a bank, ( iii ) is designated by the term " traveler 's check '' or by a substantially similar term, and ( iv ) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument. 

( j ) " Certificate of deposit '' means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank. 
( a ) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or behalf of the issuer of an instrument and all the signers do not intend the same person as payee, the instrument is payable to any person intended by one or more of the signers. 

( b ) If the signature of the issuer of an instrument is made by automated means, such as a check-writing machine, the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee, whether or not authorized to do so. 

( c ) A person to whom an instrument is payable may be identified in any way, including by name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply : ( XXXX ) If an instrument is payable to an account and the account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number. 

( XXXX ) If an instrument is payable to : ( i ) a trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named ; ( ii ) a person described as agent or similar representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative ; ( iii ) a fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or ( iv ) an office or to a person described as holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent. 

( d ) If an instrument is payable to two or more persons alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively. 
( a ) First Tier. Any member bank which, and any institution-affiliated party ( within the meaning of section XXXX ( u ) of the Federal Deposit Insurance Act ) with respect to such member bank who, violates any provision of section 22, 23A, or 23B, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than {$5000.00} for each day during which such violation continues. 

[ 12 USC 504 ( a ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by acts of Oct. 15, 1982 ( 96 Stat. 1523 ) and Aug. 9, 1989 ( 103 Stat. 470 ). ] ( b ) Second Tier. Notwithstanding subsection ( a ), any member bank which, and any institution-affiliated party ( within the meaning of section 3 ( u ) of the Federal Deposit Insurance Act ) with respect to such member bank who commits any violation described in subsection ( a ) ; recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank ; or breaches any fiduciary duty ; which violation, practice, or breach -- is part of a pattern of misconduct ; causes or is likely to cause more than a minimal loss to such member bank ; or results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than {$25000.00} for each day during which such violation, practice, or breach continues.

[ 12 USC 504 ( b ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( c ) Third Tier. Notwithstanding subsections ( a ) and ( b ), any member bank which, and any institution-affiliated party ( within the meaning of section 3 ( u ) of the Federal Deposit Insurance Act ) with respect to such member bank who -- knowingly -- commits any violation described in subsection ( a ) ; engages in any unsafe or unsound practice in conducting the affairs of such credit union ; or breaches any fiduciary duty ; and knowingly or recklessly causes a substantial loss to such credit union or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subsection ( d ) for each day during which such violation, practice, or breach continues. 

[ 12 USC 504 ( c ). As added by act of Nov. 10, 1978 ( 72 Stat. 3641 ) and amended by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( d ) Maximum Amounts Of Penalties For Any Violation Described In Subsection ( c ). The maximum daily amount of any civil penalty which may be assessed pursuant to subsection ( c ) for any violation, practice, or breach described in such subsection is -- in the case of any person other than a member bank, an amount to not exceed {>= $1,000,000} ; and in the case of a member bank, an amount not to exceed the lesser of -- {>= $1,000,000} ; or 1 percent of the total assets of such member bank.

[ 12 USC 504 ( d ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by acts of Oct. 15, 1982 ( 96 Stat. 1523 ) and Aug. 9, 1989 ( 103 Stat. 470 ). ] ( e ) Assessment, Etc. Any penalty imposed under subsection ( a ), ( b ), or ( c ) shall be assessed and collected by in the case of a national bank, by the Comptroller of the Currency ; and in the case of a State member bank, by the Board, in the manner provided in subparagraphs ( E ), ( F ), ( G ), and ( I ) of section 8 ( i ) ( 2 ) of the Federal Deposit Insurance Act for penalties imposed ( under such section ) and any such assessment shall be subject to the provisions of such section. 

[ 12 USC 504 ( e ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( f ) Hearing. The member bank or other person against whom any penalty is assessed under this section shall be afforded an agency hearing if such member bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8 ( h ) of the Federal Deposit Insurance Act shall apply to any proceeding under this section. 

[ 12 USC 504 ( f ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( g ) Disbursement. All penalties collected under authority of this paragraph shall be deposited into the Treasury.

[ 12 USC 504 ( g ). As added by act of Nov. 10, 1978 ( 92 Stat. 3641 ) and amended by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( h ) Violate Defined. For purposes of this section, the term " violate '' includes any action ( alone or with another or others ) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. 

[ 12 USC 504 ( h ). As added by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( i ) Regulations. The Comptroller of the Currency and the Board shall prescribe regulations establishing such procedures as may be necessary to carry out this section.

[ 12 USC 504 ( i ). As added by act of Aug. 9, 1989 ( 103 Stat. 470 ). ] ( m ) * Notice Under This Section After Separation From Service. The resignation, termination of employment or participation, or separation of an institution-affiliated party ( within the meaning of section 3 ( u ) of the Federal Deposit Insurance Act ) with respect to a member bank ( including a separation caused by the closing of such a bank ) shall not affect the jurisdiction and authority of the appropriate Federal banking agency to issue any notice and proceed under this section against any such party, if such notice is served before the end of the 6-year period beginning on the date such party ceased to be such a party with respect to such bank ( whether such date occurs before, on, or after the date of the enactment of this subsection ).

[ 12 USC 504 ( m ). As added by act of Aug. 9, 1989 ( 103 Stat. 461 ). ] Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 10A, 10B, 13, or 13A of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers ' acceptances purchased under the provisions of said section 14, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under section 14 of this Act or any other asset of a Federal reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.

Company response to consumer: Closed with explanation