Consumer complaint received 2026-01-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: Thaxton Investment Corporation
State: IA

Complaint narrative:
I am filing a new complaint regarding Heights Finances handling of my auto loan dispute and materially inaccurate statements made by Heights Finance in response to a prior CFPB complaint. 

In XX/XX/2025, I purchased a used vehicle from XXXX XXXX after being expressly told in writing by the dealership that the vehicle had no transmission issues. The purchase was financed through a retail installment sales contract that was assigned to Heights Finance, making Heights Finance the assignee and holder of the contract and subject to all claims and defenses under the FTC Holder Rule ( 16 C.F.R. 433 ). 

Immediately after purchase, the vehicle exhibited serious transmission problems, including harsh shifting, delayed engagement, slipping, and unsafe drivability. The check engine light illuminated the day after purchase, and diagnostic scanning indicated transmission-related fault codes. I promptly notified the dealership and returned the vehicle for inspection. 

The dealership asserted that the issue was related to motor mounts and performed a motor mount repair. This repair did not resolve the transmission issues. I later obtained an independent diagnostic from a licensed transmission repair facility, which confirmed significant transmission defects and indicated that major transmission repair or rebuild would likely be required. 

The dealership later suggested a vehicle replacement. However, the only vehicle offered had serious frame and suspension defects and was unsafe. I was also informed that a replacement would require new financing. Heights Finance subsequently issued a formal adverse action letter dated XX/XX/2025, denying financing for any replacement vehicle. As a result, acceptance of a replacement vehicle was not possible. 

I filed a CFPB complaint due to the unresolved defects and invoked my rights under the FTC Holder Rule. In its response to that complaint, Heights Finance made multiple factual assertions that are contradicted by documentary evidence : First, Heights Finance stated that a motor mount repair was performed by my private mechanic. This statement is false. The selling dealership later confirmed in writing that its own mechanic performed the motor mount repair. This misstatement materially affected Heights Finances conclusion that the dealership exhausted repair efforts. 

Second, Heights Finance stated that I declined to select a replacement vehicle. This characterization is inaccurate. Heights Finances own adverse action letter dated XX/XX/2025 confirms that financing for a replacement vehicle was denied. Because financing was denied, acceptance of a replacement vehicle was impossible. The representation that I declined a replacement is misleading and unsupported by the record. 

Third, review of the title documentation shows the vehicle was sold using a title reflecting private individuals as owners, and the vehicle was never titled in the dealerships name prior to sale. The title reflects a date approximately seven months prior to my purchase, raising concerns regarding improper title handling and the dealerships lawful authority to sell the vehicle. 

Heights Finance relied on inaccurate dealer representations, submitted misleading information in a CFPB response, and failed to properly address my dispute under the FTC Holder Rule. Despite my provision of documentary evidence and my continued payment of the loan under protest to protect my credit, Heights Finance has not corrected the record or offered an appropriate resolution. 

I am requesting that CFPB review Heights Finances dispute handling, reliance on inaccurate dealer information, and submission of materially inaccurate statements in a regulatory response, and require corrective action consistent with Heights Finances obligations under the FTC Holder Rule. 

Supporting Documentation Submitted The following documents are submitted in support of this complaint and corroborate the facts described above : Written communications from the selling dealership confirming that the dealerships own mechanic performed the motor mount repair, contradicting Heights Finances prior CFPB response. 
Independent transmission diagnostic report from a licensed transmission repair facility confirming significant transmission defects requiring major repair or rebuild. 
Heights Finance adverse action ( loan denial ) letter dated XX/XX/2025, demonstrating that financing for a replacement vehicle was denied and that acceptance of a replacement vehicle was therefore impossible. 
Vehicle title documentation reflecting private individuals as owners, with a title date several months prior to purchase and no evidence the vehicle was titled in the dealerships name prior to sale. 
Heights Finances prior CFPB response, containing the inaccurate statements described above. 

These documents collectively demonstrate that Heights Finance relied on inaccurate or incomplete dealer representations and submitted materially inaccurate information in a prior CFPB response.

Company response to consumer: Closed with explanation