Consumer complaint received 2025-01-12 00:00:00
Product: Debt collection — Auto debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: UNIVERSAL ACCEPTANCE CORPORATION (NE)
State: MN

Complaint narrative:
I originally purchased a car from CarHop in XXXX XXXX. The initial vehicle was a XXXX XXXX XXXX. During this purchase I was informed that I had a warranty. Within less than XXXX weeks of having the vehicle, it was trouble in paradise. I contacted CarHop to inform them that something was wrong with the vehicle. They advised me to bring the vehicle into XXXX of their recommended shops ( XXXX XXXX ). To summarize it up, the transmission needed repairs which should've been covered under warranty, however the branch manager refused to cover the repairs. However as an alternative, they let me out of the contract for that vehicle and allowed me to purchase another vehicle. In XXXX I entered into a contract for a XXXX XXXX XXXX. Once again, within weeks and less than a month of having the second vehicle, I experience issues. This time the power steering pump, thermostat and other repairs are needed and once again nothing is covered under warranty. 

On XX/XX/XXXX, I called CarHop ( XXXX, MN location ) and spoke with the Branch Manager. At the conclusion of that conversation, it was my understanding that they would let me out of my contract without penalty and that it would not negatively affect my credit. Also on XX/XX/XXXX, I visited the XXXX XXXX to sign any forms that would release me of liability and to get any belongings out of the vehicle. They had the vehicle in their possession at that time. When I arrived, my grandma ( XXXX XXXX and I asked several questions in regards to how this would show up on my credit report. I was told that it would show up as a settlement on my credit report. I was advised multiple times that it would not show up as a voluntary repo. I was also informed that it would not show up as me owing a balance or have a negative impact on my credit. They informed me that I didn't have any forms or anything to sign, yet the day after my visit, on XX/XX/XXXX they drafted a proposed notice of satisfaction of obligation that was post-dated XX/XX/XXXX. 

On XX/XX/XXXX, I received a notification on my phone from XXXX that there was a change to my credit report. When I looked at my credit report, I saw that CarHop had closed the account. They have reported a balance being owed. However the biggest issue is that they indicated that it was voluntary surrender aka voluntary repo. This whole situation has been a nightmare from the very beginning and now they've ruined my credit after they indicated that they wouldn't. Upon this notification, I contacted my grandma and was informed of the proposed notice. The notice itself is also inaccurate because it states that I defaulted on my loan, which is false. I never missed any payments since the original purchase. I was actually making payments before the due date. I did sign the notice with verbiage and included a copy of my payment history. I signed, dated, emailed and mailed the form today. I do have a recording of the branch manager agreeing to all that i've stated in this email. I've attached a copy of what's been sent back to CarHop. I am distraught over this and it will take me years to fix my credit and I'm only XXXX XXXX XXXX.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with monetary relief