Consumer complaint received 2024-11-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: Carvana Group, LLC
State: FL

Complaint narrative:
This is your FINAL NOTICE regarding your unlawful handling of my credit application dated XX/XX/XXXX2024, and your violations of multiple federal laws. Your actionsincluding your illegal demand for income verification, improper use of my credit report, and denial of my capacity to contractare in direct contravention of the Equal Credit Opportunity Act ( ECOA ), Truth in Lending Act ( TILA ), and Fair Credit Reporting Act ( FCRA ). 

I will no longer tolerate your attempts to infringe upon my legally protected rights using internal policies that blatantly disregard federal law. 

I. Capacity to Contract As a legal adult of sound mind, I possess full capacity to contract under both constitutional law and federal statutes. Acting under the authority of a valid Durable Power of Attorney ( DPOA ), I represent the principal and have lawful authority to engage in and enforce all contracts on their behalf. 

Your actions to question my capacity to contract are baseless, discriminatory, and constitute a violation of my constitutional rights under the Fifth and Fourteenth Amendments. Furthermore, I am not a minor, and your denial based on arbitrary internal policies amounts to unlawful interference with my right to contract and the principals interest. 

Case Law Support : XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX : Agencies must operate within the confines of statutory authority and can not impose rules or conditions that exceed their lawful boundaries. 
XXXX XXXX XXXXXXXX : Affirms the necessity for adherence to due process in financial decision-making and enforcement of statutory rights. 
XXXX XXXX XXXXXXXX, XXXX XXXX XXXX : Reinforces the enforceability of statutory and constitutional rights, including capacity to contract. 
By law, I have the right to enforce the principal 's interest, which derives from the application and the collateral security created therein. 

II. The Application as Collateral Security Pursuant to the Federal Reserve Act Section 16, my submitted application, which includes the principals government name, Social Security Number, and signature, functions as collateral security. This makes the application sufficient consideration for funding the loan, negating any requirement for additional proof of income or down payments. 

Your rejection, based on an alleged lack of income verification, directly contravenes this federal standard. A credit application is a self-executing instrument of collateral security and requires no further action or documentation beyond its submission. 

Case Law Support : XXXX v. XXXX : Holds that a promissory note exchanged for credit satisfies all funding requirements, rendering demands for income verification unlawful. 
XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX  XXXX. XXXX ( XXXX. XXXX XXXX ) : Confirms that banks can not lend their credit and must treat submitted applications as sufficient collateral. 
Your arbitrary demands for income verification have no basis in federal law and violate the fiduciary duty owed to the applicant and the principal. 

III. Unlawful Use of Credit Reports and FCRA Violations Your denial letter references third-party credit reporting agencies, including XXXX, as part of your decision-making process. This reliance is both contradictory and a direct violation of 15 U.S.C. 1681a ( i ) ( FCRA ) and 15 U.S.C. 1601 ( TILA ). Federal law requires lenders to base their decisions solely on the information provided in the credit application. 

Case Law Support : XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX ( XXXX XXXX App XXXX ) : Affirms that banks can not lend credit and must rely exclusively on the terms of the submitted application. 
XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX : Reinforces the principle that lending decisions must adhere strictly to federally mandated standards, not arbitrary external metrics like credit scores. 
IV. Income Verification is Arbitrary and Unlawful No federal statute authorizes XXXX to require income verification as a condition of credit approval. Internal bank policies are irrelevant and do not override federal law. 
Under 15 U.S.C. 1691 ( ECOA ), it is unlawful to deny credit based on arbitrary or discriminatory conditions. Additionally, the Truth in Lending Act ( 15 U.S.C. 1601 ) explicitly prohibits the imposition of conditions beyond those stated in the original credit application. 

V. Principals Interest and Tender of Payment As the agent under DPOA, I am enforcing the transfer of the principals interest to offset the obligation. The credit application and promissory note already satisfy all requirements for creating the credit line. Your refusal to honor the principal 's interest is a breach of fiduciary duty and constitutes willful non-compliance. 

Legal Precedent : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX : Confirms that financial instruments submitted by the applicant must be recognized as sufficient collateral.

Company response to consumer: Closed with explanation