Consumer complaint received 2024-12-09 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: American Credit Acceptance, LLC
State: VA

Complaint narrative:
Loan Overview : - Date Financed : XX/XX/XXXX - Loan Amount Financed : {$36000.00} - XXXX : 24 % - Loan Term : 73 months - Monthly Payment : {$970.00} - Payoff Amount Quoted ( XXXX XXXX ) : {$36000.00} - Total Paid to Date ( 21 months ) : {$18000.00} - Current Principal Balance : {$34000.00} - Fees & Charges : {$1400.00} - Vehicle : XXXX XXXX XXXX, XXXX miles - Estimated Vehicle Value ( XXXX ) : {$24000.00} {$28000.00} I am filing this complaint against American Credit Acceptance ( ACA ) for what I believe are clear examples of predatory lending, excessive fees, and misapplication of payments. Since XX/XX/XXXX, I have paid over {$18000.00} toward my auto loan, but despite these payments, only {$2400.00} has been applied to reduce the principal. Instead, 87 % of my payments have been applied to fees and interest. This imbalance is not only financially crippling but also appears designed to trap me in a long-term cycle of debt. 

On top of that, ACA is demanding a payoff amount of {$36000.00}, which is nearly identical to the original loan amount of {$36000.00}, despite me paying over {$18000.00} toward this loan. Their refusal to provide an itemized breakdown of the fees and their refusal to apply payments correctly are unacceptable. I believe ACA is intentionally inflating my balance to keep me in a debt trap. 

Specific Issues of Concern 1 ) Misapplication of Payments - I have made consistent payments totaling {$18000.00} over 21 months, yet only {$2400.00} has been applied to the principal. 
- ACA appears to be disproportionately applying my payments to fees and interest, which does not align with standard simple-interest loan practices. 
- Despite repeated requests, ACA has failed to provide a complete itemized breakdown of how each payment was applied to principal, interest, and fees.

2 ) Excessive and Unexplained Fees - The most recent payoff statement shows a total of {$1400.00} in fees and charges, but ACA has refused to provide an itemized breakdown.

- I have made several attempts to understand where these fees came from, but ACA has only provided vague, non-specific responses.

- The fees appear to be arbitrary and unjustified. I believe ACA is inflating my loan balance with these fees to prevent me from paying down the principal.

3 ) Grossly Inflated Payoff Amount ( 150160 % Loan-to-Value ) - The current payoff amount is {$36000.00}, which is nearly identical to the original loan amount of {$36000.00}, despite me paying over {$18000.00} toward the loan. 
- My vehicle is a XXXX XXXX XXXX with XXXX miles. Its fair market value ( according to XXXX XXXX XXXX ) is between {$24000.00} and {$28000.00}. 
- This puts the current Loan-to-Value ( LTV ) ratio at 150160 %, far above industry standards. This inflated LTV makes it impossible for me to refinance the loan, as no lender will approve a refinance when the payoff is {$15000.00} more than the vehicle 's value. 
- I applied for refinancing with XXXX XXXX XXXXXXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, and XXXX, but all of them rejected the application due to the excessively high payoff balance relative to the vehicle 's value. 

4 ) Predatory Lending and Debt Trap - ACAs practices fit the definition of predatory lending. By charging excessive fees, inflating balances, and using a disproportionate payment allocation model, they have effectively ensured that I remain in a debt cycle. 
- ACAs business model appears to be focused on preventing borrowers from paying off their loans, which violates basic principles of good faith and fair dealing. 

5 ) Failure to Provide Payment Assistance During Hardship - In XX/XX/XXXX, I experienced a job loss and faced significant health issues. During this time, I informed ACA of my situation and requested temporary relief or payment plan adjustments. 
- Despite my proactive communication, ACA refused to offer any flexibility. I was met with threats of repossession and refusals to adjust payment schedules.

- On multiple occasions, when I tried to schedule payments through ACA 's XXXX XXXX, it was locked or unavailable, leaving me unable to make payments. 
- ACA refused to provide any alternative methods to make payments, effectively trapping me in delinquency. 

If ACA fails to resolve this matter, I am prepared to escalate my complaint to my state attorney general 's office. My co-signer is also prepared to do so in his state. We believe ACA has engaged in unfair and deceptive practices and has violated our rights as borrowers. 

This situation has caused emotional and financial hardship for both me and my co-signer. Ive made significant sacrifices to keep this loan afloat, cutting back on essentials like housing, food, and medical expenses. The constant threats of repossession have taken an emotional toll on my family, and ACAs refusal to provide reasonable assistance during my job loss and health issues has made an already difficult situation worse. 

I have made every effort to stay in communication with ACA and to make payments, even if they were partial payments. But every effort Ive made has been met with inflexibility, misinformation, and indifference. I believe this is part of a deliberate strategy by ACA to force borrowers into delinquency, add unjustified fees, and prevent them from ever paying off their loan. 

I respectfully ask the CFPB to investigate American Credit Acceptance for predatory lending, misapplication of payments, and lack of transparency. I ask for full debt reconciliation, fee removal, and an APR reduction to 1016 %. I also ask for a temporary suspension of payment obligations and a halt to repossession threats while this investigation is pending. If necessary, I am prepared to escalate my complaint to my state attorney general and explore potential legal action.

Company response to consumer: Closed with explanation