Consumer complaint received 2025-06-11 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: SHABANA MOTORS
State: TX

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to formally file a complaint against Shabana Motors, located in XXXX, TX regarding a vehicle loan that resulted in an involuntary repossession and auction sale. Shabana Motors is now alleging that I owe a deficiency balance of {$6800.00}, and this amount has been reported to both XXXX and XXXX  as a delinquent debt.

Key Allegations : 1. Violation of the Truth in Lending Act ( TILA ) 15 U.S.C. 1601 et seq.

Shabana Motors failed to provide the required disclosures regarding the loan terms, annual percentage rate ( APR ), finance charges, and my right to rescind. There was no clear breakdown of the cost of credit or explanation of my repayment obligations. This is a direct violation of TILA, which mandates transparent lending practices.

2. Improper Notice of Repossession and Sale under UCC 9-611 The creditor failed to issue a proper and timely Notice of Default and Right to Cure and did not provide a Notice of Sale as required under UCC Article 9. I was not informed of the time or place of the sale, which denied me the opportunity to either cure the default or attend and bid on the vehicle. This is a failure of commercial reasonableness in the sale process.

3. Violation of the Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692 The attempt to collect a deficiency balance after an improperly executed repossession and sale may constitute a deceptive, unfair, and abusive collection practice. 
4. Furnishing Inaccurate Credit Information Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681 Shabana Motors is reporting a balance of {$6800.00} to XXXX XXXX XXXX without validating the amount, explaining how it was calculated, or accounting for the auction proceeds. This is a violation of FCRA, which requires that only accurate and complete information be furnished to consumer reporting agencies. 
5. Potential Fraud and Misrepresentation The process from repossession to reporting has involved gross misrepresentation, lack of due process, and potentially fraudulent practices, including failure to itemize sale proceeds, misapplication of payments, and reporting a deficiency not legally owed. 



Relief Requested : Immediate investigation into Shabana Motors for the above violations.

Full deletion of the inaccurate and unlawful account entry from XXXX XXXX XXXX credit files. 
Verification of the legality and accounting of the deficiency balance claim.

Imposition of any appropriate fines, penalties, or corrective actions for their non-compliance with federal and state consumer protection laws. 
Reimbursement for any damages incurred as a result of this unlawful conduct, including adverse credit impacts and emotional distress. 

Thank you for your attention and support in this matter. I am prepared to cooperate fully with any investigation and provide further evidence upon request. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation