Consumer complaint received 2025-02-13 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: CarMax, Inc.
State: GA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX XXXX : Complaint Against CarMax Auto Finance for Unfair , Deceptive , and Fraudulent Debt Collection Practices To Whom It May Concern, I am submitting this formal complaint against CarMax Auto Finance for unlawful debt collection, false credit reporting, and deceptive lending practices in violation of TILA ( 15 U.S.C. 1601 et seq. ), the Fair Credit Reporting Act ( FCRA, 15 U.S.C. 1681 et seq. ), the Fair Debt Collection Practices Act ( FDCPA, 15 U.S.C. 1692 et seq. ), and the Uniform Commercial Code ( UCC ). 

Complaint Summary Credit Was Created Using My Signature & U.S. Treasury Redemption Under TILA, 15 U.S.C. 1605, when I signed the contract for vehicle financing, my signature created a negotiable instrument ( promissory note ), which was then monetized by CarMax. 
This instrument was treated as an asset by CarMax and used to fund the transaction, meaning no actual loan was provided by them. Instead, credit was extended based on my pre-existing value as the issuer of the note.

The U.S. Treasury recognizes consumer credit instruments as collateral, and CarMax may have redeemed this note through Treasury processes without disclosing it to me.

12 CFR 226.23 ( TILA Rescission Rights ) requires full disclosure of how credit was extended, yet CarMax failed to disclose that the loan was funded using my own credit via the promissory note.

Securitization & Lack of Standing to Collect My loan was converted into a security and sold to investors, meaning CarMax is no longer the true creditor.

12 CFR 226.39 requires lenders to notify borrowers if their loans are transferred, yet CarMax has failed to provide proper disclosure of the securitization and sale of my loan.

UCC 3-302 ( a ) states that a " holder in due course '' must take an instrument for value and in good faith, but if CarMax sold the note, they have already received payment. 
Unlawful Repossession & Double Recovery CarMax repossessed my vehicle and sold it, yet they are still attempting to collect an alleged deficiency balance.

UCC 9-610 mandates that collateral must be sold in a commercially reasonable manner.

UCC 9-615 ( d ) ( 2 ) requires that if a creditor recovers the full value of the loan ( through securitization and collateral sale ), they can not legally collect further payments.

False Credit Reporting & Civil Rights Violations ( 42 U.S.C. XXXX ) CarMax falsely reported late payments and a balance due on my credit report, despite already receiving full payment through securitization and collateral sale. 
Their coordinated actions with credit bureaus and debt collectors constitute a civil rights conspiracy under 42 U.S.C. XXXX, as they have knowingly acted to misrepresent the true nature of the debt and harm my financial standing.

Resolution Sought I request that the CFPB take immediate action and enforce compliance against CarMax Auto Finance for their violations. Specifically, I demand : Removal of all negative credit reporting related to this account. 
Correction of the account balance to reflect that no debt is owed.

Cessation of all collection efforts, as CarMax no longer has standing to collect.

Full disclosure of the loans securitization and any U.S. Treasury redem
ption transactions related to my promissory note.

Regulatory penalties and enforcement actions against CarMax for engaging in deceptive lending and collection practices. 
CarMax Auto Finance has engaged in fraudulent, deceptive, and unfair financial practices, harming me financially and violating my civil rights. I urge the CFPB to investigate and take corrective action immediately. 

Sincerely, /s/ XXXX XXXX

Company response to consumer: Closed with explanation