Consumer complaint received 2025-03-18 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: SANTANDER HOLDINGS USA, INC.
State: NC

Complaint narrative:
I am filing a formal complaint against Santander Consumer USA due to their predatory lending practices and unfair loan servicing, which have caused significant financial hardship. The structure of my loan made it nearly impossible to pay down the principal balance, leaving me trapped in an escalating cycle of debt. Despite repeated attempts to seek assistance, I was met with misleading information, denial of interest rate adjustments, and inflexible payment scheduling that made repayment unreasonable. 

Details of the Loan & Predatory Practices Original Loan Amount : {$17000.00} Interest Rate : 18 %, excessive and exploitative Monthly Payment : {$400.00}, but over $ XXXX consistently went toward interest, with less than {$100.00} applied to the principal balance Balance Growth Instead of Reduction : By XX/XX/XXXX, despite making regular payments, my balance had actually increased to {$17000.00}, according to Santanders charge-off listed on XXXX XXXX. This is clear evidence that my payments were structured to sustain debt rather than reduce it. 


Unfair & Misleading Loan Servicing Practices Deceptive Payment Structuring : Santander representatives informed me that there was no way to allocate payments toward the principal balance, ensuring I remained trapped in a high-interest cycle. 

Failure to Offer Hardship Relief During COVID-19 : No meaningful options were provided despite the widespread financial strain caused by the pandemic. 

Unethical Interest Allocation : The way my payments were applied appears to be a clear case of loan structuring designed to prevent borrowers from making actual progress toward repayment.

Failed Negotiation of Interest Rate & Payment Schedule : When I attempted to renegotiate the interest rate and adjust the payment schedule to make it more manageable, Santander refused to offer any alternative options, further reinforcing their predatory lending model.

Personal Hardships & Santanders Indifference In XX/XX/XXXX, my brother suffered a near-fatal XXXX, and in XX/XX/XXXX, my sister XXXX XXXX. While struggling with these personal tragedies, I attempted to work with Santander to find a solution, but I was met with rigid demands for full payments, which continued to feed the predatory interest structure rather than reducing my balance in any meaningful way.

Documented History of Predatory Lending Santander has a documented history of unfair and deceptive loan practices : XXXX Settlement : In XX/XX/XXXX, Santander agreed to a {$550.00} XXXX settlement with 34 state attorneys general over allegations of predatory auto lending practices. The investigation found that Santander knowingly placed consumers into auto loans with a high probability of default, violating consumer protection laws. ( Accorsing to attorneygeneral.gov ) Loan Forgiveness & Restitution : As part of the settlement, Santander agreed to provide {$65.00} XXXX in restitution and forgive nearly {$500.00} XXXX in auto loan debt to consumers nationwide. ( According to thenationaltriallawyers.org ) Ongoing Scrutiny & Class Actions : In XXXX, consumers filed a class-action lawsuit alleging Santander continued deceptive practices even after the settlement. 

In XXXX, Santander faced renewed scrutiny over its auto lending tactics, with consumer advocacy groups highlighting persistent misapplication of payments, inflated loan balances, and failure to provide reasonable assistance to borrowers. 



These ongoing allegations suggest that Santander 's problematic lending practices have not been fully corrected and that my experience aligns with their history of consumer harm.

Company response to consumer: Closed with explanation