Consumer complaint received 2025-11-06 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Banking errors
Company: SANTANDER HOLDINGS USA, INC.
State: RI

Complaint narrative:
I was issued what Santander described as an overdraft loan I could pay off. In XXXX of XXXX. I was XXXX years old, looking for a {$3000.00} loan. The person I spoke to said the best loan to open for me was an overdraft line type loan and gave me the {$3000.00} loan that way. 
However, Santander failed to disclose that the loan was set up as an interest-only revolving credit line, resulting in nearly all payments going to interest instead of principal.

Over approximately 10 years, I paid ONLY {$970.00}, approximately {$0.00} per payment went toward principal every month, for TEN YEARS. The principal has effectively not decreased and remains around {$3000.00}. 
I reasonably believed my payments were reducing the loan balance, but Santander did not clearly disclose that payments would not amortize the loan. This appears to be a failure to provide proper Truth in Lending ( Regulation Z ) disclosures regarding payment allocation and repayment structure. This is highly predatory Ive never experienced a loan this way. 
This payment structure created a situation where the loan could not be reasonably repaid, which constitutes an unfair and deceptive lending practice ( UDAAP ). I was told today by phone by XXXX XXXX from santander that you wouldve been estimated to pay it off by the year XXXX and that I better pay it or I will be getting a mark on my credit this is HIGHLY predatory behavior on Santander. 
I am requesting : A complete interest and payment history audit I was issued what Santander described as an overdraft loan I could pay off. In XXXX of XXXX. I was XXXX years old, looking for a {$3000.00} loan. The person I spoke to said the best loan to open for me was an overdraft line type loan and gave me the {$3000.00} loan that way. 
However, Santander failed to disclose that the loan was set up as an interest-only revolving credit line, resulting in nearly all payments going to interest instead of principal.

Over approximately 10 years, I paid ONLY {$970.00}, approximately {$0.00} per payment went toward principal every month, for TEN YEARS. The principal has effectively not decreased and remains around {$3000.00}. 
I reasonably believed my payments were reducing the loan balance, but Santander did not clearly disclose that payments would not amortize the loan. This appears to be a failure to provide proper Truth in Lending ( Regulation Z ) disclosures regarding payment allocation and repayment structure. This is highly predatory Ive never experienced a loan this way. 
This payment structure created a situation where the loan could not be reasonably repaid, which constitutes an unfair and deceptive lending practice ( UDAAP ). I was told today by phone by XXXX XXXX from santander that you wouldve been estimated to pay it off by the year XXXX and that I better pay it or I will be getting a mark on my credit this is HIGHLY predatory behavior on Santander. 
I am requesting : A complete interest and payment history audit FORGIVENESS of interest charges paid due to non-disclosure Correction of any negative credit reporting related to this account As you can see by my credit report, I have a CLEAN credit, have re-payed every loan Ive ever had and do not even miss payments. This is heinous how Santander has preyed on me in this loan trap for TEN years and trying to trap me until the year XXXX. Unfair and unlawful practices. 

FORGIVENESS of the rest of this loan and of interest charges paid due to non-disclosure Correction of any negative credit reporting related to this account As you can see by my credit report, I have a CLEAN credit, have re-payed every loan Ive ever had and do not even miss payments. This is heinous how Santander has preyed on me in this loan trap for TEN years and trying to trap me until the year XXXX. Unfair and unlawful practices.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation