Consumer complaint received 2025-05-29 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Southern Auto Finance Co
State: GA

Complaint narrative:
The UCC NON-AUTHORITATIVE COPY has a lot of inconsistency, errors and discrepancy between the terms I agreed to with the dealer and the terms the lenders. This retail installment sales contract is not a true copy of the original but more like a forgery copy.

The first error is this forgery copy is the high interest rate. The interest rate for this copy contract is 23.92 %. This is what you call usury. Under Fl. Stat. Chapter 687 and under Fl. Usury laws states the maximum permissible interest rates in Florida for a simple interest rate for loans under {$500000.00} is 18 % per annum and loans above {$500000.00} is 25 % per annum. The usury laws apply to a wide range of loans especially for consumer loans. My alleged loan is {$40000.00}. This is way under {$500000.00}. Why wasnt this disclosed to me? Whoever violated any of the provisions of Fl. Usury Laws that commits a felony of the third degree, punishable as provided in this chapter.

SAFCO can not enforce any collection of any sum of money or other obligation at a rate of interest greater than 18 % percent of annum, simple interest indirectly. Therefore, you do not have the authority or ability to collect and I am in no way obligated to repay any sum of money when my interest rate exceeds 18 %. This constitutes unsury in its purest form and is a violation of Fl. Usury Law. The law states that delinquency charges for monthly payments can not exceed {$15.00}. This too is in error because the delinquency charge according to the XXXX each month is {$25.00}. This is over killed.

This UCC NON-AUTHORITATIVE COPY was forged after the financial transaction was completed. The dealer and Safco objection was with the intent to deceive me. The true terms were manipulated in a deceiving, and extorting way.

Forgery is a serious offense with potential legal consequences, including fines, imprisonment, and a criminal record.

Why wasnt the true annual percentage interest rate under the Truth In Lending Act wasnt disclosed to me?

If SAFCO is claiming that this alleged debt is owed, where is the contractual agreement contract between myself and SAFCO binding us both, the lender and borrower through a covenant. Show me the documentation. I am requesting for the lenders agreement terms as well as the dealer agreement terms so I can compare it to my retail installment sales contract with the other two parties. This XXXX ( risk ) contract is between the seller and the buyer not the lender and the buyer. This deceptive practice has lead me to a buyer remorse state of mind. SAFCO has caused me great deal of injury, pain and suffering by having a financial strain on my finances under unfair loan terms which was very difficult for me to repay. I wasnt aware of these acts until SAFCO had my vehicle wrongfully repossessed. How could I have known about this? It has affected my financial informed purchasing decision which I felt into SAFCO predatory lending practices nor could I have protected my financial interests due to lack of disclosures.

12 CFR 1024.36 is a request for information, acknowledgment of receipt and response to the information request.

Please operate in good faith and honor, but most of all be truthful. I will ask SAFCO and XXXX OF XXXX XXXX ( seller ) a series of questions that require to be answered in full explicitly details so I can understand these terms of the agreement.

1. If SAFCO claims that there is a contractual agreement between the buyer and the alleged lender. Why wasnt the buy rate known as the net rate on the auto loan disclosed to me per the Truth In Lending Act?

2. Can SAFCO disclose to me the buy rate to allow me to be aware and understand if I was charged a higher interest rate than necessary?

3. SAFCO claims that there is a loan. Is it possible for a loan to be disguised as an extension of credit, or for an extension of credit to be disguised as a loan?

4. Can SAFCO provide proof of the UCC financial statements filed naming the secured party as creditor?

( the originator acts as servicer and not the issuing SPE who typically retains possession of the contract as custodian to perform the necessary servicing functions. If the originator transferred possession of the contract to a third party, that will enable the third party to have priority over the rated note holders ) 5. I am requesting for a written detailed explanation of how my {$3500.00} down payment was applied and why it didnt reduce the allegedly loan principal? 
Was there an error or miscalculation, hidden fees or charges, or a misleading practices? ( XXXX OF XXXX XXXX ( seller ) 6. Do you agree that this retail installment sales contract, which is a bill of sale, the collateral is over-collateralized? ( owing more than what it is truly worth ) XXXX. Can XXXX disclosed the markup price on the interest rate on the alleged loan and how much did the dealer profited off the markup? 
XXXX. What was the loan-to-value ratio of the loan and in your opinion was the XXXX a positive or negative equity?

9. Was this a simplified process, meaning did SAFCO preferred to handle the contracts directly with the dealer, by keeping me, the borrower involvement limited to the core loan terms and disclosures?

10. Contract law states that a contract is an agreement between two parties, creating a mutual obligation that is enforceable by law. This agreement involves an offer by one party and an acceptance by the other along with consideration ( money ). Id theres a contact between myself and Southern Auto Finance Company ( SAFCO ) LLC, SAFCO Auto Depositor , LLC, SAFCO Auto Receivables Trust 2022-1 and SAFCO Auto Receivables Trust 2024-1? ( Do not send me the buyer and seller XXXX between myself and XXXX ) XXXX. Is it true, that most lenders want to ensure that their contracts are legally sound and compliant with regulations, so whenever a borrower requests a full dealership contract between a lender and dealer to compare it against the borrowers contract. Does the request get denied because lenders might not wont borrowers to see the terms that could be interpreted as hidden or deceptive?

12. Do SAFCO sells its accounts receivable ( invoices ) to a third party and/or third parties at a discount to obtain immediately cash flow?

13. Since, the claim is made against me owing an alleged debt, did this transaction qualified as a true sale or a secured loan?

14. What was the economic substance of the transaction and not its legal form?

15. Do SAFCO benefit from its off-balance financing sheet by structuring transactions as a sale that allows them to remove the asset and associate debt from its balance sheet, improving their financial ratios like debt-to-equity that can be very attractive to investors?

16. Is SAFCO intentions is to aim to maximize profits by charging high interest rates, high fees and usury to its new customers under the guise of legitimate products like MCAs?

17. Do SAFCO exploits vulnerable consumers like myself by leveraging due to my lack of financial literacy?

18. Why is the true nature of a financial transaction at its core?

19. An auto loan and a XXXX are two different things but why does it show on my credit report that it is an auto loan when that is not the case. What is the nature of the auto loan thats being reported inaccurately on my report?

20. Was this financial transaction systematically documented in SAFCO accounting records that provides a chronological order to include the history of purchases, sales, payments ( receivables ), receipts, transfers and the creation or liquidation of financial assets and liabilities?

21. Who are the underwriters for SAFCO concerning the alleged loan agreement?

22. SAFCO extends credit to borrowers, Fl. Stat. 687.071 ( d ) making a loan of money. Where did the funds originated from and if its borrowed money, where is the proof that the money was given to me?

23. According to the original agreement who was to loan what to whom?

24. Does the {$40000.00} note has the actual cash value of {$40000.00}, meaning can you sell this contract for {$40000.00} and receive the cash?

25. Do you have any personal knowledge of the signing of the said contract?

26. Did SAFCO willfully and intentionally knowingly charged a rate exceeding 23.92 % per annum meaning SAFCO conspired to do so without thinking about the after effect or the consequences it may had on me?

27. According to the FDIC it states that a lender structuring a transaction as a guise for an alleged loan, often for fraudulent purposes involve red flags like invalid documents, undisclosed debts, and inconsistent information. Then it goes on to say that if a lenders fails to follow standard due diligence, such as verifying the borrowers ability to repay or verifying the collateral. What was the transactions implications?

28. According to your understanding of the agreement, how much cash value must SAFCO loan to the borrower, in order for SAFCO to legally fulfill the agreement and legally own the contract?

29. Does you agree that they borrower agreed to provide SAFCO with {$40000.00} of actual cash value, which was then used to fund the {$40000.00} Lon check back to the same borrower and then agreed to repay SAFCO back the {$40000.00} plus usury interest?

30. Did the agreement call for an exchange or swap of {$40000.00} to be swapped out for another {$40000.00} or did it call for a {$40000.00} loan?

31. Do SAFCO or the XXXX acquires the risks associated with the securitised assets if the borrower defaults?

32. Explain to me the true sale of the securitisation process and is the true sale the transfer of structure under legal principles meaning the assets are legally isolated from SAFCO and that investors can have a clear claim to the cash flow!

33. Due to the uninformed use of credit, SAFCO has misled me by holding out key relevant information from me that cloudy my informed decision making causing me to use up more credit that wasnt needed. I didnt understand the terms and conditions of the contract or the true cost of the credit. Do you agree that SAFCO negligence caused an extremely amount of uninformed use of my credit to be used as unauthorized charges on my account?

34. What is the contract ID to verify that my retail installment sales contract was converted into an interest-bearing security to be traded on the secondary market?

35. If the borrower never received payment from a lender, is theres a strong possibility that the loan agreement is invalid, a breach of contract and the borrower wouldnt no longer be obligated to repay it?

36. What is the legitimacy of the loan and SAFCO claim?

37. Did the funds come from a warehouse facility, which allows lenders to fund loans without using their own capital, SAFCO capital, the borrowers trust account or investors and whos participating in the securitisation of the two auto ABS transactions?

38. Is it illegal for any lender to convert a XXXX into a bond during the securitisation process without providing adequate notice to the consumer due to the FCRA and TILA?

39. What the chain of title broken after the securitisation? Who has legal ownership and has the loan been sold?

40. What investment bank has my contract?

41. How much did SAFCO pay the dealer to attain my contract?

42. Does the agreement explicitly states that the loan would be transferred to a SPV ; a bankruptcy remote trust?

43. When a borrower defaults on its obligations, does diversification and credit enhancement is used to mitigate risk for SAFCO so they will never incur a loss?

44. Do SAFCO earns net interest margin, while the interest rate is paid to the certificate holders? 
XXXX. XXXX or SAFCO did not give me full disclosure. The law states lenders are required to give consumers full disclosure in a way they could grasp the concept. I was not informed that I would be creat

ing a security, even if the lender or dealer wrote it in fine print it supposed to be clear and conspicuous to the buyer. This is not full disclosure but a deceptive common practice thats doesnt make it legal. 46. Where is th
e transparency, SAFCO?

Please answer each question in full detailed explanation. UCC 9-210 is the request for accounting of my account. Please provide to me the full accounting of the account.

Company response to consumer: Closed with explanation