Consumer complaint received 2024-08-19 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: CA

Complaint narrative:
On XX/XX/2024, I discovered that the APR as disclosed in the truth in lending disclosures table was inaccurate. I took it upon myself to use the formula set forth by the CFPB to calculate the APR, for the purpose of ensuring that all the numbers in the disclosure table were accurate. I multiplied the amount financed ( {$19000.00} ) by the APR as shown on the contract ( 23.10 % ) which produced the yearly amount ( {$4500.00} ) that would have been paid each year if the APR as disclosed on the contract was applied to the unpaid amount of the amount financed. I took the yearly amount and multiplied it by six ( 6 ) because the terms of the contract would have been for six ( 6 ) years, which gave me a different total ( {$27000.00} ) than the total shown on the contract ( {$37000.00} ). 

At that point I discovered the APR as shown on the contract was not the actual APR used to calculate the finance charge as disclosed on the contract, or the total of all payments that would have been paid at the end of six ( 6 ) years. In order to find the actual APR that was used to calculate the finance charge as disclosed on the contract, I multiplied the monthly payments as disclosed on the contract ( {$510.00} ) by twelve ( 12 ) months in a year, which gave me the actual yearly total ( {$6200.00} ) based on the monthly payment as disclosed on the contract. I then took the yearly amount ( {$6200.00} ) and divided it by the amount financed as shown on the contract ( {$19000.00} ) for the purpose of calculating what the actual APR was that was applied to get the finance charge as disclosed on the contract, and the total of all payments that would have been paid at the end of six ( 6 ) years. 

After dividing the yearly amount ( {$6200.00} ) by the amount financed ( {$19000.00} ) I then discovered the actual APR ( 31.23337094039 % ) which was applied to the unpaid amount of the amount financed. In order to ensure that my math was correct, I multiplied the actual APR ( 31.23337094039 % ) by the amount financed ( {$19000.00} ) which gave me the same total of yearly payments ( {$6200.00} ) when I multiplied the monthly payments as disclosed on the contract by twelve ( 12 ) months in a year. I then took that yearly amount and multiplied it by six ( 6 ) years because that's how long the term of the contract was. I then discovered that the APR as disclosed on the contract was inaccurately disclosed, because when I multiplied the yearly amount ( {$6200.00} ), which is based on the monthly amount as shown on the contract, by six ( 6 ) years, the total came out to the exact same total of all payments ( {$37000.00} ) as disclosed on the contract.

Pursuant to 15 U.S.C. 1606 ( c ) in accordance with the regulations of the CFPB as imposed by The Congress in the Truth in Lending Act ( " TILA '' ), for the purposes of accuracy and compliance with that subchapter, it is a violation for the APR as disclosed to be greater or lesser than 1/8 of one ( 1 ) percentage point from the actual APR. The APR as shown on the contract is ( 23.10 % ) while the actual APR is ( 31.23337094039 % ), for a total difference between the APR as disclosed, and the actual APR, of 8.1 percentage points.

Everything within the Truth in Lending disclosure table is inaccurate, with the exception of the amount financed. If the APR as disclosed on the contract was accurate and actually applied to the unpaid amount financed, the finance charge as disclosed on the contract would have been ( {$7600.00} ) and not the amount as inaccurate disclosed on the contract as ( {$17000.00} ). The same goes for the total of all payments at the end of six ( 6 ) years, if the APR ( 23.10 % ) as disclosed on the contract was accurate and actually applied to the unpaid amount financed, then the total of all payments at the end of six ( 6 ) years would have been ( {$27000.00} ) and not the amount inaccurately disclosed on the contract ( {$37000.00} ).

As a result of the inaccurate disclosure of the APR as disclosed on the contract, the finance charge as disclosed on the contract, and total sum of all payments as disclosed on the contract, Santander as the assignee of the contract, and XXXX are criminally and civilly liable for giving false and inaccurate information pursuant to 15 U.S.C. 1611 ( 1 ), for failing to provide information which is required to be disclosed under the TILA pursuant to 15 U.S.C. 1611 ( 1 ), and for failure to comply with any requirement imposed under the TILA pursuant to 15 U.S.C. 1611 ( 3 ) as imposed by The Congress in the TILA.

This consumer complaint is not about a loan. I did not receive any money or a check. This consumer complaint is about a consumer credit transaction which provided for a finance charge. I received an extension of consumer credit, not a loan.

Company response to consumer: Closed with explanation