Consumer complaint received 2024-11-10 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Credit denial
Company: American Credit Acceptance, LLC
State: FL

Complaint narrative:
This notice serves as a final demand before initiating legal action against American Credit Acceptance , LLC ( ACA ) for discriminatory practices, violations of the Equal Credit Opportunity Act ( ECOA ), Fair Credit Reporting Act ( FCRA ), Truth in Lending Act ( TILA ), and constitutional rights violations. Based on the denial letter received ( dated XX/XX/XXXXXXXX  ), it is clear that your actions are arbitrary, discriminatory, and not grounded in any lawful basis. 

I. Discrimination and Violation of ECOA ( 15 U.S.C. 1691 ) The Equal Credit Opportunity Act ( ECOA ) prohibits discrimination in credit decisions based on arbitrary factors such as race, color, religion, national origin, sex, marital status, or age ( as long as the applicant has the capacity to contract ). Your denial letter ( attached ) states contradictory information, referencing XXXX and XXXX credit scores, yet also stating that credit scores were not used in the decision process. This inconsistency suggests a discriminatory practice and violation of ECOA, which mandates equal treatment in credit decisions. 

Case Law Support : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : Reinforces the requirement for transparency and non-discriminatory credit decisions. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) : Establishes that a lack of clear and lawful reasoning for credit denial constitutes a violation under ECOA. 
II. Unlawful Denial of Credit Using Arbitrary Scoring Metrics Banks and financial institutions do not lend their own money ; they obtain funds from the Federal Reserve using customer applications as collateral. As a consumer and the registered owner, investor, and debtor in this transaction, I have provided sufficient consideration through the promissory note, as established in XXXXXXXX XXXX XXXX. Denying my credit application based on an internal scoring mechanism ( e.g., XXXX  score of XXXX ) is not justified by federal law and violates my rights under ECOA and TILA. 

Case Law Support : XXXX XXXX XXXX  : A promissory note exchanged for credit constitutes full funding, and any denial based on an internal credit score metric is invalid. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXXXXXX XXXX XXXXXXXX ) : Reinforces that banks can not lend credit, making the use of credit scores for denial baseless. 
III. Violation of TILA and Federal Reserve Act Section 16 The Truth in Lending Act ( TILA, 15 U.S.C. 1601 ) requires clear disclosures in credit transactions. Additionally, the Federal Reserve Act Section 16 dictates that the application itself serves as collateral security. The denial based on internal metrics such as credit score, when the application is sufficient as collateral, is a direct violation of TILA and the Federal Reserve Act. 

Case Law Support : XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX ( XXXX ) : Mandates full disclosure and lawful basis for credit decisions. 
XXXXXXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX ( XXXX. XXXX XXXX ) : Establishes that banks can not lend their credit and must adhere to lawful standards in assessing credit applications. 
IV. Violation of Constitutional Rights Your arbitrary denial impedes my right to access credit, which directly infringes upon my constitutional rights to due process and equal protection under the Fifth and Fourteenth Amendments. As a consumer with the capacity to contract, I am not a minor, and any attempt to deny my lawful extension of credit is an unlawful discrimination. 

Case Law Support : **SEC XXXX XXXX : Reinforces the necessity for adherence to lawful processes, ensuring no arbitrary or unjust decisions are made by financial institutions. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : Establishes the importance of following statutory guidelines rather than internal, arbitrary rules, especially when those rules contradict federal regulations. 
V. Breach of Fiduciary Duty and SEC Filing Obligations According to your Indenture Trustee Agreement and SEC filings, you have a fiduciary duty to act in the best interest of all parties, including ensuring transparency and lawful decision-making in credit evaluations. The failure to recognize my application as collateral security breaches this duty, showing a clear disregard for your obligations. 

Legal Reference : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX : Confirms that corporations lack authority to lend credit outside the scope of their fiduciary duties. 
Prayer for Relief Given the violations outlined above, I demand the following : Reservation of Rights I, XXXX XXXX, as the Grantor, reserve all my constitutionally secured rights in perpetuity with prejudice. I do not waive any secured rights, and I demand full compliance with all applicable laws. Any further infringement will be met with swift legal action.

Company response to consumer: Closed with explanation