Consumer complaint received 2025-05-02 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: Mercedes Benz Financial Services
State: FL

Complaint narrative:
Mercedes-Benz Financial Services failed to comply with the following federal laws and consumer protection standards : I was not provided a full amortization schedule or accurate disclosures of finance charges, as required under the Truth in Lending Act ( TILA ).

I was subjected to non-negotiable, pre-bundled add-on products such as Theft Protection, Super Polysteel, and Tire & Wheel, with no meaningful opportunity to declinea practice falling squarely within the Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) standard under the Dodd-Frank Act.

After initiating multiple certified dispute letters, including formal demands for accounting and return of a pledged promissory note and collateral, the company refused to respond in good faith or investigate the matters raised, constituting a violation of the Fair Credit Reporting Act ( FCRA ).

tatutory Violations Include : TILA Regulation Z 1026.17 : Failure to provide accurate and complete cost disclosures and amortization schedule ; FCRA 15 U.S.C. 1681s-2 ( b ) : Failure to conduct a reasonable investigation of a dispute upon notification by the consumer ; Dodd-Frank Act 12 U.S.C. 5531 ( Section 1031 ) : Engaging in UDAAP by imposing hidden finance charges and compulsory bundled products.

These violations were not only deceptive but materially harmed me as a borrower by inflating my obligation and concealing the true cost of financing. Furthermore, the company 's refusal to respond to certified communications undermines the spirit of contract law and consumer protection.

Add-On Product Advertised/Separate Agreement Price Itemized Contract Charge Overcharge/Violation?

TireGuard ( AWS ) {$990.00} ( as shown in signed TGR-3 doc ) TIRE & WHEEL {$2400.00} {$1400.00} discrepancy Super Polysteel Not separately documented {$690.00} No disclosure opportunity Theft Protection / IAS Not separately disclosed in contract. Included / Undisclosed No opt-out shown Prepaid Maintenance Separate agreement, {$3500.00} {$3500.00} ( shown separately ) Bundled but not optional Truth in Lending Act ( TILA ) Violations 15 U.S.C. 1601 et seq.

TILA 1026.17 ( c ) requires clear, accurate disclosure of finance charges and itemization of amounts financed.

You were not told the real cost of the Tire & Wheel warranty before signing.

You signed for {$990.00} ( see AWS TireGuard agreement ), yet your loan includes a charge of {$2400.00}, meaning {$1400.00} was added without consent or disclosure.

Fraudulent Misrepresentation & Bad Faith Dealership Conduct You were provided a {$990.00} TireGuard product, then charged nearly 2.5x that amount in your final financing sheet.

The discrepancy of {$1400.00} in price between the signed TireGuard warranty and the contract amount is a red flag for dealer markup fraud.

There is no indication these products were optional or explained.

Violation : Constructive fraud by concealment or misrepresentation of product pricing and benefit.

Bundled Services Without Disclosure = Unconscionable Terms The following add-ons were pre-packaged without evidence of opt-in, opt-out, or individual pricing justification : Tire & Wheel : {$2400.00} Super Polysteel : {$690.00} Theft Protection / IAS : Nondisclosed Window Tint : {$290.00} Violation : Inaccurate disclosure of amount financed and concealed dealer markup.

UDAAP Dodd-Frank 1031, 12 U.S.C. 5531 Bundling of non-negotiable, optional products into the contract without meaningful choice violates the prohibition on : Deceptive acts : Suggesting products are mandatory Unfair practices : Inflating loan balance via dealer-packaged protections no consumer requested Violation : You were not given the opportunity to decline the {$2400.00} Tire & Wheel or the {$690.00} Super Polysteel packages.

These charges inflate the amount financed and are calculated into the loan APR, directly impacting TILA disclosure requirements.

Total Financial Impact : Category Amount Warranty Discrepancy {$1400.00} Super Polysteel {$690.00} Window Tint {$290.00} Potentially Hidden IAS ~ {$500.00} {$800.00} est.

Total Impact ~ {>= $1,000,000} TILA 1026.17 ( c ) : Failing to disclose accurate amounts financed.

UDAAP ( 12 U.S.C. 5531 ) : Deceptive bundling and nondisclosure of optional add-ons.

Constructive Fraud : Contract reflects prices significantly different from signed warranty agreements.

FCRA ( if related to credit dispute ) : Continued reporting of inflated loan amount.

Breach of Contractual Fair Dealing : Dealer inflated third-party product costs without customer consent.

Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 ( b ) If you disputed the account in writing and Mercedes-Benz Financial Services failed to investigate , or continued furnishing inaccurate data to credit bureaus, this is a direct violation.

FCRA requires reinvestigation of disputes and correction or deletion of unverified tradelines.

Violation : Failure to respond to disputes or correct inaccurate credit reporting.

I allege that MBFS and its affiliated dealership engaged in a series of unlawful, unfair, and deceptive practices in connection with the origination, disclosure, bundling, and post-financing conduct of the loan, in violation of multiple federal consumer protection statutes.

Specific Violations and Supporting Facts : Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

MBFS failed to accurately disclose the " amount financed '' under Regulation Z ( 12 CFR 1026.17 ( c ) ).

A Tire & Wheel product priced at {$990.00} per the signed third-party service agreement was listed as {$2400.00} in the loan contract, resulting in a {$1400.00} overcharge.

No complete amortization schedule was provided.

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ), Dodd-Frank 1031, 12 U.S.C. 5531 The following products were bundled into the contract without opt-out options or clear disclosure : Super Polysteel : {$690.00} Window Tint : {$290.00} Theft Protection / IAS : Nondisclosed price Tire & Wheel : {$2400.00} These inflated costs were added to the loan principal without my meaningful consent.

Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ) MBFS failed to investigate multiple certified disputes regarding this tradeline and account status.

MBFS continued furnishing inaccurate data to credit bureaus.

Equal Credit Opportunity Act ( ECOA ), 15 U.S.C. 1691 I was not informed of the dealers buy rate, nor provided any opportunity to negotiate the finance rate.

This concealed markup and potential discriminatory pricing.

Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693e ( a ) ( if applicable ) If ACH auto-pay enrollment was required, written consent was not secured.

Failure to Respond to Certified Mail Requests I sent multiple certified requests seeking : a ) Return of the pledged promissory note ; b ) Full accounting of securitization or assignment status ; c ) Confirmation of the actual note holder.

MBFS failed to respond to these lawful demands.

Constructive Fraud and Contractual Misrepresentation The dealership sold a TireGuard policy priced at {$990.00}, but listed it on the contract at {$2400.00}.

This discrepancy constitutes a deceptive, undisclosed dealer markup and violates the duty of fair dealing.

Remedies Requested : Immediate investigation into MBFSs deceptive origination, bundling, and reporting practices.

Demand full accounting of the loan, including actual finance charge, amortization schedule, and all bundled product disclosures.

Order MBFS to return or account for the pledged security instrument ( the promissory note ), if monetized or securitized.

Order deletion or correction of any tradeline associated with this contract unless MBFS can validate the obligation.

Assess fines or regulatory penalties under applicable CFPB authority.

Equal Credit Opportunity Act ( ECOA ) 15 U.S.C. 1691 If there was any disparate treatment during the credit approval process based on protected characteristics ( race, XXXX, marital status, etc. ), or : You were denied information about your buy rate, Or offered inflated terms based on dealer discretion without disclosure, Violation : Discriminatory or opaque credit decisioning.

Requested Remedy : I respectfully request that the CFPB : Initiate a full regulatory investigation into Mercedes-Benz Financial Services USA LLC ; Compel the company to produce a complete accounting and confirm whether the original promissory note was securitized or transferred ; Enforce the return of any pledged instruments or proceeds stemming from their unauthorized use ; Evaluate the companys use of bundled add-ons as a deceptive financing practice ; Award or recommend appropriate statutory damages or injunctive relief as provided under the relevant consumer protection statutes.

I have attached or can provide additional documentation, including : My signed contract showing non-optional bundled charges ; Certified mail receipts of unanswered dispute letters ; My sworn affidavit outlining all violations ; Relevant credit reporting entries and loan servicing correspondence.

Thank you for your time and consideration of this matter. I am willing to cooperate fully with any investigation or administrative process you undertake. 

Sincerely, XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX XXXX

Company response to consumer: Closed with explanation