Consumer complaint received 2024-11-12 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: SANTANDER HOLDINGS USA, INC.
State: SC

Complaint narrative:
Subject : Complaint Against Chrysler Capital/Santander and XXXX XXXX XXXX XXXX for Multiple Violations of Consumer Protection Laws Dear CFPB, I am filing a formal complaint against Chrysler Capital/ Santander and XXXX XXXX of XXXX XXXX due to multiple violations of federal consumer protection laws and South Carolina consumer protection laws in connection with my vehicle financing contract. My concerns include improper handling of the financing agreement, misrepresentation of terms, and failure to provide legally mandated disclosures. 

The vehicle was purchased XX/XX/XXXX. I requested the Retail Sales Contract from Chrysler Capital/Santander on XX/XX/XXXX and they only sent me one of four pages out of the Retail Sales Contact. I contacted XXXX XXXX XXXX XXXX on XX/XX/XXXX and spoke with XXXX in XXXX department he sent me the four page Retail Sales Contract. When I asked him for additional documents such a the application I did and or the purchase agreement for the vehicle. I received no response on either date of XX/XX/XXXX or XX/XX/XXXX. 
I wrote letters to both companies and attached an Affidavit of Truth and a Cease and Desist letter on XX/XX/XXXX and sent them off certified mail. I am awaiting a response. The letter stated the following : I am writing to formally amend and or cancel my car contract, effective immediately, due to fraud, misrepresentation, and violations of federal and state consumer credit laws. I am writing to also formally contest the outstanding balance you claim is owed following the repossession and resale of my vehicle. Also the misrepresentation of the transactions nature and violations of consumer credit laws regarding finance charges. I am exercising my rights under both South Carolina state law and federal consumer protection law, as your actions violate Section 36-9-614 of the South Carolina Code, which mandates proper notification for repossession and sale of collateral. My contract details are as follows : I believe the following consumer rights have been violated. On the contract it states you the buyer and co-buyer if any may buy the vehicle below for cash or on credit and by signing this contract you choose to buy the vehicle on credit under the agreement in this contract. 
I gave you an application with my Social Security number on it, which is equivalent to a cash offer and I gave you cash in the form of a down payment because I was told I had to. Any transaction that includes my Social Security number is a consumer credit transaction. Yall ran my credit when I was asked for my Social Security number because thats the combination to my treasury account needed to access the credit needed to purchase the vehicle. Under 15 USC 1615 it states Creditors must refund any unearned interest to consumers who prepay their loans in full unless the refund is less than a {$1.00}. My Social Security number was used as the credit to purchase the vehicle in full. 

Under the no cooling off. On the contract it states after I signed the contract I may only cancel it if the seller agrees or for legal cause. I have discovered within the contract it can be canceled due to legal violations on this contract and I would like to cancel it immediately. Also, on the contract it states under how this contract can be changed if I want to make changes send a written notice and there is no time limit on when a change can be made. If I made any promises to yall under this contract and they didnt benefit me, I would like to revoke my promise because I wouldnt have made this promise with the intelligence, the knowledge I have now and it says in the contract I can make changes at any time.

I am revoking your permission to have the Security interest in this contract. I do not agree to give you all proceeds from insurance, Maintenance, service, money, goods, or other contracts you finance for me. This includes any refunds of premiums or charges from this contract any and all amount owed has already been secured in this contract. Under using the vehicle in number 2. YOUR OTHER PROMISES TO US section B, I would like the following to be included in the finance charge. If you pay any repair bills, storage bills, tax fines, or charges on the vehicle that I agreed to repay that amount when you asked for it.

On this contract is states under # 3 IF YOU PAY LATE OR BREAK OTHER PROMISES You will send a written notice of sale before selling the vehicle. When my vehicle was repossessed, I was neither notified of the sale nor provided with the necessary information before or after the sale, including the sale price, sale type ( private or auction ), an auction statement, or any communication that would support the collection of a deficiency balance.

Also after reviewing the contracts that were given to me as I requested from Chrysler capital/Santander and XXXX XXXX XXXX XXXX XXXX XXXX dealership XXXX there was no arbitration clause on those copies of the contracts I received. Why were not all documents included when I asked you for the following Retail Sales Contract? I also asked for the application I did and or purchase agreement as well and I did not receive. Where is the arbitration clause? If there is not one put into place I would like to add one. I would like to resolve this dispute and be remedy through arbitration.

Additionally, I was not seeking a loan, but rather a consumer credit transaction for personal, family, or household purposes. Misrepresenting this transaction as a loan has placed me in a debt relationship I did not agree to and which is a violation under 15 U.S. Code 1692e. I know my rights and am exercising them, and I request the immediate return of any payments made under this misrepresentation. I have made a total of 27 payments paying off 68 % of the loan.

Under consumer credit law, a finance charge can only be applied to funds received directly by the borrower, whether deposited in my account or given as money in hand. I did not receive such funds directly ; therefore, I should not be responsible for paying finance charges on this transaction. The contract mischaracterized this consumer credit transaction as a loan, and I am not liable for debt payments under these misrepresented terms. 
Misrepresentation of Finance Charge : The finance charge on my retail installment agreement does not comply with 15 U.S. Code 1605, which requires that it represent the total sum of all applicable charges.

The terms loan and line of credit are distinct in legal and financial contexts, with different implications for the consumer. Misrepresenting this consumer credit transaction as a loan places me in a debt relationship I did not agree to, and this mischaracterization is prohibited under 15 U.S. Code 1692e, which prevents false or misleading representations in consumer credit transactions. 

The contract contains multiple violations of federal consumer protection laws, rendering it fraudulent. The down payment associated with this contract was illegal under the following provisions : Details of Violations : 1. Fraudulent Finance Charge ( 15 U.S.C. 1605 ) : The finance charge must be based on actual funds received by the borrower, either as a direct deposit or cash in hand. Since I did not receive such funds, any finance charges applied are unlawful.

2. Illegal Down Payment Structure ( 15 U.S.C. 1662 ( b ) ) : Mixing cash with a consumer transaction is prohibited. My down payment was improperly structured under this code. 
3. Misrepresentation of Trade-In Value ( SC Code 39-9-120 ) : I was verbally informed at the dealership that my trade-in was valued at {$1000.00}, but the contract later listed it as only {$500.00}, which violates South Carolina consumer protection law .

4. Unauthorized Cash Advance ( 16 CFR 433.1 ( d ) ) : It appears that a cash advance may have been made using my Social Security number or credit card information without my authorization.

5. Unauthorized Disclosure of Non-Public Personal Information ( 15 U.S.C. 6801 ) : Chrysler Capital/Santander disclosed my non-public personal information, including late payments and charge-offs, to credit bureaus without my consent. 
6. Failure to Provide Notice of Right to Rescind ( 12 CFR 1026.23 ) : Under 12 CFR 1026.23 ( b ), creditors must provide two copies of the notice of the right to rescind to each consumer entitled to rescind. I did not receive this notice, so my rescission period has not yet begun. I am exercising my right to rescind with this letter.

7. Failure to Disclose Terms in a Transparent Manner ( 15 U.S.C. 1615 ) : Federal law mandates transparency in credit transactions. Creditors must refund any unearned interest to consumers who prepay their loans in full, unless the refund is less than {$1.00}. Chrysler Capital did not clearly disclose the terms of the transaction or my right to rescind, violating this law. 
8. Misrepresentation of Transaction Type ( 15 U.S.C. 1692e ) : Chrysler Capital misrepresented the transaction as a loan rather than a consumer credit transaction, which is deceptive and violates federal law.

9. False or Inaccurate Disclosure of Information ( 15 U.S.C. 1611 ) : Chrysler Capital failed to provide accurate and required information about the transaction, which appears to be a willful violation of this law.

10. Failure to Notify of Sale and Deficiency Collection Procedures ( SC Code 36-
9-614 ) : After repossessing my vehicle, Chrysler Capital did not notify me of the sale details, including the sale price, type of sale, auction information, or any deficiency balance. This lack of communication is in violation of South Carolina law.

I am holding you criminally liable for knowingly, willfully, holding this information and not providing it to me. I the obligor has the right to rescind and consumer credit transactions under 15 USC 1635 ( a ).

I am exercising my right to rescind the contract due to violations that have affected my ability to fulfill this agreement. The contract was represented as a loan, but it is in fact an extension of consumer credit, making it a consumer credit transaction rather than a loan. 

This misrepresentation of the transactions character and terms constitutes a violation under 15 U.S. Code 1692e, which prohibits false or misleading representations in connection with consumer credit.

Misrepresentation of Finance Charge : The finance charge on my retail installment agreement does not comply with 15 U.S. Code 1605, which requires that it represent the total sum of all applicable charges. 

I entered into what I understood to be a consumer credit transaction intended as an extension of credit primarily for personal, family, or household purposes, not a loan. However, the contract is being represented as a loan or retail sales installment contract, which is misleading and a misrepresentation of the transactions character. I did not enter into a loan agreement, nor did I go to the dealership for a loan. I sought an extension of credit, not a debt-creating loan. 


Failure to Provide Notice of Right to Rescind : I was not provided with notice of my right to rescind the contract, which is a requirement under federal law. This failure invalidates the contract and any claims for balance owed. This omission renders the contract invalid, and I will not accept any backdating of finance documents to rectify this failure.

Under 12 CFR 1026 sec. 1026.23 states Right of Rescission The creditor shall deliver. The notice required by paragraph ( b ) of this section, but need not delivered. New material disclosure. Delivery of the required. Notice shall begin the recession.

Although South Carolina has no rescission laws put into place for vehicles. Federally under this section you must comply with these federal laws. 

Failure to Provide Required Notice of Right to Rescind : According to 12 CFR 1026.23 ( b ), a creditor must provide two copies of the notice of the right to rescind to each consumer entitled to rescind, in accordance with the E-Sign Act if done electronically. The notice must be a separate document that identifies the transaction and clearly discusses the right of rescission. I have not received this notice ; therefore, my rescission period has not yet begun. The rescission period only starts when I exercise my right to rescind by notifying you, as I am doing with this letter.

Creditor Obligations Upon Rescission : Under 12 CFR 1026.23 ( d ) ( 1 ), when a consumer rescinds a transaction, the security interest related to the right of rescission becomes void, and the consumer is not liable for any amount, including finance charges. Furthermore, within XXXX calendar days of receiving this notice of rescission, you are required to return any money or property that has been given to anyone in connection with the transaction and to take any necessary action to reflect the termination of the security interest. 


I contest the outstanding balance you claim is owed following the repossession and resale of my vehicle. I am exercising my rights under both South Carolina state law and federal consumer protection law, as your actions violate Section 36-9-614 of the South Carolina Code, which mandates proper notification for repossession and sale of collateral.

Violation of South Carolina Code Section 36-9-614 : When my vehicle was repossessed, I was neither notified of the sale nor provided with the necessary information before or after the sale, including the sale price, sale type ( private or auction ), an auction statement, or any communication that would support the collection of a deficiency balance. As per my understanding, the contract should have been canceled upon the resale of the vehicle.

According to South Carolina Code Section 36-9-614, Chrysler Capital or its agents were required to notify me of the time and manner of the sale and provide an auction statement if applicable. Failing to comply with this statutory requirement means you can not seek any deficiency balance from me.

Since I did not receive a notification of deficiency after the sale, Chrysler Capitals attempt to collect a deficiency balance is unlawful. The lack of notification makes the debt invalid, and I am not liable for any remaining balance under this contract. Any further obligation under this contract is null and void due to these violations. 


Given these issues, I dispute the ongoing collection efforts for the deficiency balance. I request immediate confirmation of the cancellation of my contract and the cessation of any attempts to collect this debt. 

Please provide documentation related to the resale of the vehicle and any outstanding balance, as well as your written acknowledgment of the cancellation of my contract. 


Request for Immediate Action : Please consider this letter as my formal notice to amend, rescind, and cancel the contract. I request the immediate return of all payments made, including the down payment and compensation for the undervaluation of my trade-in. I request a check to be attached with your written response via mail tendered in the amount owed to me. I request a written confirmation that this account is settled in full with a XXXX balance and that no further attempts will be made to collect any deficiency. The title to the vehicle that was repossessed, as it should have been returned to me upon cancellation of the contract.The immediate removal of all derogatory information related to this account from my credit report, including any late payments and charge-offs reporting to unaffiliated third partys ( credit bureaus ), and a written confirmation of contract cancellation. 


Thank you for your attention to this matter. I expect a timely resolution in compliance with both federal and South Carolina consumer protection laws in 20 calendar days.

Summary of Remedies Sought : Due to these multiple violations, I request the following remedies : 1. Refund of Total Payments Made : I made 27 payments of {$560.00} each, totaling {$15000.00}.

2. Refund of Down Payment : I paid a {$3000.00} down payment, which should be refunded in full.

3. Reimbursement for Trade-In Value : My trade-in was verbally valued at {$1000.00}, and I request a refund for this amount.

4. Damages for Each Violation : I request {$1000.00} for each of the ten violations outlined, totaling {$10000.00} in damages.

5. Removal of Derogatory Credit Information : I request that any derogatory marks related to this account be removed from my credit reports.

6. Full Rescission of Contract : I request that the contract be fully rescinded, with a XXXX balance and no further obligations on my part. 

Total Requested Amount : {$29000.00} Despite my efforts to address these issues directly with Chrysler Capital/Santander and XXXX XXXX XXXX XXXX XXXX XXXX have not resolved the matter. I am seeking the CFPBs assistance to ensure Chrysler Capital/Santanders and XXXX XXXX XXXX XXXX compliance with consumer protection laws and to secure the remedies I am owed.

Thank you for your time and attention to this complaint. I look forward to a resolution of this matter with your assistance.

Company response to consumer: Closed with non-monetary relief