Consumer complaint received 2025-09-27 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: TX

Complaint narrative:
Complaint Against : Company 1 : Santander Consumer USA , Inc. 
Address : XXXX XXXX XXXX, XXXX XXXX, TX XXXX Company 2 : XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX  ) Address : XXXX XXXX XXXX XXXX, XXXX, TX XXXX Subject : Formal Complaint Regarding Predatory Auto Loan and Sale of Defective Vehicle - Violations of TILA, Holder Rule, and State Laws To the Consumer Financial Protection Bureau, I am filing this complaint against Santander Consumer USA , Inc. and XXXX XXXX XXXX XXXX XXXX regarding a predatory automobile loan and the fraudulent sale of a defective XXXX XXXX XXXX XXXX. I am two months behind on payments and facing repossession due to the unaffordable nature of a loan that was facilitated through deceptive practices and for a vehicle with a known, dangerous safety defect that was not disclosed at the time of sale.

1. Undisclosed Safety Defect and Fraudulent Sale by XXXX XXXX  On or about XX/XX/XXXX, I purchased a used XXXX XXXX XXXX XXXX ( VIN : XXXX ) from XXXX  XXXX XXXX XXXX. After the purchase, I discovered that the vehicle has a known and dangerous defect with its electronic suspension system. Before I replaced the vehicle 's battery, the suspension would malfunction, causing the truck to swerve dangerously when driving over uneven roads, potholes, and bumps. This constitutes a serious safety hazard that the dealership failed to disclose. 

The fact that replacing the battery temporarily resolved the issue suggests the dealership was likely aware of the problem but concealed it. This failure to disclose a known, material safety defect constitutes a fraudulent practice under the Texas Deceptive Trade Practices Act ( DTPA ).

2. Predatory Lending and Unaffordable Loan Terms During the sale, I was pressured by the dealership 's finance manager to increase my down payment to {$5000.00} to secure loan approval. The loan was ultimately assigned to Santander Consumer USA with the following terms : Annual Percentage Rate ( APR ) : 24.10 % Loan Term : 72 months Monthly Payment : {$740.00} Total Loan Amount : Approximately {$28000.00} These terms are objectively predatory. The 24.10 % APR is exorbitant. Combined with the mandatory full-coverage insurance, this payment is unaffordable and has directly led to my current default. The dealership packed the loan with expensive add-ons, including a Vehicle Service Contract for {$2600.00} and a XXXX/Debt Cancellation agreement for {$700.00}, further increasing the principal and the cost of the loan.

3. Violation of the Holder Rule - Santander 's Liability My retail installment
sales contract contains the following critical notice, as required by federal law ( 16 C.F.R. Part 433 ) : " ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. '' This " Holder Rule '' means that Santander Consumer USA, as the assignee and current holder of this contract, is subject to all claims and defenses I have against the seller, XXXX XXXX Because the sale was fraudulent due to the non-disclosure of a safety defect, I have a valid defense against paying the loan. Santander is now jointly responsible for resolving this situation.

4. Desired Resolution I believe the entire transaction is voidable due to fraud and the predatory nature of the loan. My desired resolution is :

Company response to consumer: Closed with explanation