Consumer complaint received 2024-12-22 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: GFS II, LLC
State: MO

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX  XXXX, MO. XXXX XXXX XX/XX/2024 Gateway Financial Solutions XXXX XXXX XXXX  XXXX, MI. XXXX Subject : Notice of Securities Fraud and Violations of 16 CFR 433.1 and Truth in Lending Act Dear Gateway Financial Solutions, I am writing to formally address and notify you of significant legal concerns regarding my account. Specifically, the financing arrangement between myself, Gateway Financial Solutions, and the car dealership XXXX XXXX XXXX has violated applicable laws and regulations, including 16 CFR 433.1 and the Truth in Lending Act ( TILA ).

1. Violation of 16 CFR 433.1 ( The Holder Rule ) According to 16 CFR 433.1, a car dealership acting as a seller is required to offer a money purchase loan or cash advance rather than a finance loan. The contract provided by XXXX XXXX XXXX failed to comply with this requirement, as no money purchase loan or cash advance was offered or extended to me. This failure constitutes a clear violation of the Holder Rule, which protects consumers from deceptive lending practices.

2. Invalid Contractual Arrangement Under 16 CFR 433.1, a contract is valid only between the seller, the creditor, and the finance company. At no point did I, as the consumer, directly engage in a contractual agreement that properly meets the formal or informal requirements of this regulation. It is unclear how and at what stage I entered into this financial arrangement, as the retail installment sale contract fails to adequately reflect the legal standing of all parties involved.

3. Truth in Lending Act ( TILA ) Violations The contract in question discloses compliance with the Truth in Lending Act. However, the failure to provide me with a money purchase loan or cash advance renders the contract invalid under TILA provisions. The terms of fi
nancing were misrepresented, leading to a lack of transparency and informed consent on my part.

4. Language Fraud in the Retail Installment Sale Contract The contract presented by XXXX XXXX XXXX contains misleading and fraudulent language regarding the nature of the financial arrangement. The terms and conditions fail to clarify the proper legal and financial relationship between the seller, the creditor, and the consumer. Such deceptive language amounts to fraud and violates my rights as a consumer. 

Conclusion and Request for Resolution Based on the above points, I firmly believe that Gateway Financial Solutions and XXXX XXXX XXXX have participated in securities fraud and deceptive lending practices. I request immediate action to address these violations, including a full review and cancellation of the fraudulent contract. 

Please provide a written response within 15 days acknowledging receipt of this notice and outlining the steps you will take to resolve these issues. If no satisfactory resolution is provided, I reserve the right to pursue further legal action and file complaints with relevant regulatory authorities. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation