Consumer complaint received 2025-11-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: CAPITAL ONE FINANCIAL CORPORATION
State: OH

Complaint narrative:
I purchased a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX. As part of the transaction, I was sold a Vehicle Service Contract ( VSC ) through XXXX for an additional {$2200.00} ( Contract No. XXXX ). I was told at the time of purchase that if the engine failed under the VSC, I would only be responsible for the {$200.00} deductible, and the engine would be replaced with a brand-new engine. 

On XX/XX/XXXX, the engine failed due to a blown head gasket, which was a covered repair. XXXX XXXX informed me that they could not perform the repair because the VSC was third-party, and I was directed to XXXX XXXX XXXX XXXX The repair took nearly a month. 

After the repair, I discovered that the engine installed was not new, contrary to what was represented at the point of sale and what I was promised under the VSC. I was not given any documentation about the engines mileage, condition, or whether it was remanufactured or used. The engine appeared used, and later review in XXXX confirmed the replacement was not consistent with what was advertised or sold to me. 

Additionally : I initially reported fume smells immediately after the repair and was told this was normal for a new engine. 

In XXXX, I returned to the same repair facility and was informed that the fumes were caused by a leak, meaning the issue had been present since the repair and was not properly addressed. 

My deductible under the VSC was supposed to be {$200.00}, yet I was charged over {$800.00} because the warranty company refused to cover the XXXX  even though the repair facility stated that the XXXX had oil mixing and should have been covered as part of the engine failure. 

The warranty company later stated the dealership had reported both engine failure and turbocharger contamination, but no full investigation or correction was made. They denied coverage based on cost, not policy terms. 

The repair facility reused a defective turbocharger, charged me additional costs, and provided an incomplete repair. 

This situation reflects material misrepresentation at point of sale, failure to honor the VSC, improper warranty denial, and improper repair practices. I relied on the dealerships and warranty companys statements when purchasing the service contract and financing the vehicle. 

Because the warranty contract was not honored as sold, and the vehicle was not repaired to the promised standard, I have incurred financial loss and have been left with a vehicle of diminished value and ongoing safety issues. 

Requested Resolution : Forgive the remaining loan balance. 

Reimburse all payments I made on the loan, as the contract was based on misrepresentation and the warranty was not honored. 

Ensure no negative credit reporting related to this dispute. 

Investigate the dealer, warranty company, and repair facility for misleading practices and failure to fulfill contractual obligations. 

I am requesting CFPB assistance because the vehicle financing and service contract were obtained under false representations, and the warranty was not honored according to the terms that were sold to me.

Company response to consumer: Closed with explanation