Consumer complaint received 2019-06-21 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Santander Consumer USA Holdings Inc.
State: VA

Complaint narrative:
Directly from Santanders Financial Statements : Nonprime loans comprise 85 % of our portfolio as of XX/XX/2013. We record an allowance for loan losses to cover expected losses on our individually acquired retail installment contracts and other loans and receivables. For retail installment contracts we acquired in pools subsequent to their origination, we anticipate the expected credit losses at purchase and record income thereafter based on the expected effective yield, recording a provision for loan losses only if performance is worse than expected at purchase. 

XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX and Santander Consumer USA ; are knowingly using multiple erroneous and unethical forms to deceive consumers. According to their statements, it seems they have frequently used forms like these in the regular course of business and I believe they are attempting to confuse consumers into believing that the statements they provide are true. It is simply an attempt of constructive fraud spanning multiple venues of business and government. Specifically, this is a violation of the Consumer Financial Protection Act in multiple forms. 

The attempt to collect any debt via deceptive device or contrivance via creative practices, without any legitimate proof of an enforceable or valid contract in a means which is intended to mislead a reasonable consumer, should also be considered perjury and constructive fraud. The reason being is simple because these companies and their employees all have legal capacity. 

The knowledge and willful presentation of false evidence pertaining to an unenforceable and unethical contract constitutes perjury and fraud and is a violation of the CFPA ( among many other laws ). These firms know the law and are required due diligence and required to observe the rules of evidence set forth by the courts, which they have clearly broken. 

With that being said, I rebuke the false claims presented by Santander Consumer USA, XXXX XXXX, and XXXX XXXX XXXX XXXX XXXX. We need not further address the deceptive prima facia style argument presented by XXXX XXXX XXXX because their submissions against me can not tie that Santander Consumer USAs and XXXX XXXX   statements are accurate, truthful and verifiable. If we read the statements, none of the documents are certified or original copies, and it is evident that the notary public has not verified the truthfulness and/or accuracy of the statements, but only that the person appearing before them at the time of signing, was the person who appeared before the notary public. 

I firmly believe we should investigate all angles of the statements and forgeries they have presented to the courts before we develop a judgement against anyone involved. It is my firm belief that XXXX XXXX XXXX has not performed any due diligence in verifying and validating the debt, and they are simply acting in their faulty and clueless regular course of business. Although they are required and claim to have knowledge of the law as a licensed attorney, it is evident that they have no idea how to do their job and/or they are blatantly lying. 

It is not my intention to persecute XXXX XXXX XXXX, but simply defend myself from the accusations presented before me and do everything in my power to help protect others similarly situated from Santander Consumer USAs deceptive practices. 

My basic understanding of this process is that this debt is not valid or enforceable. I am unaware of exactly what they are proposing because their statements are not balanced, verifiable or certified and I am simply stating my interpretation of the matters presented before me as I see it. 

Moving forward, Santander Consumer USA ( SC ) has been issued an order by DEDOJ that they are required to cease and desist in their deceptive practices to prevent future occurrences of similar financial and unethical damages to consumers. They have not attempted to fully restore damages or stop harassing consumers by closing/repurchasing the unenforceable pool of debts which they promised they would. 

SC knowingly sold these unenforceable deficiency balances/debts via a pool of accounts to XXXX XXXX, after destroying/misplacing any certifiable evidence to cover their transaction scandals and deception. They are still attempting to collect unenforceable debts on their manipulative Retail Installment Contracts ( RIC ) and will continue to further harass and damage consumers and our local judicial systems with their spamming threats, and brute force attacks. 

Their unfair, manipulative, and deceptive processes that interfere with the Due Process Clause and freedom to contract laws protected by the 14th amendment are wasting considerable time and money considering the magnitude of their attempts to collect unenforceable debts based upon false pretenses and deceptive practices used to coerce misinformed and uneducated consumers into accepting the false claims offered in their Retail Installment Contract scheme. 

Santander has not heeded the warnings issued by a collaborative effort between the Delaware Department of Justice ( DEDOJ ) and the state of Massachusetts Attorneys General. By SCs failure to comply, they are knowingly and willingly violating the law by continuing to deceive and harass consumers across the United States. The unknowing consumer is constantly harassed and alienated by their unfair debt collection practices, usury, deception, lies, and creative accounting practices. They have failed to remediate their abusive RIC practices and restore relief to injured consumers. 

SCs deceptive sales tactics through their network of dealers have created a system of dealers who no longer sell cars. The dealer doesnt care which car you buy, just that the subprime borrower signs the RIC and they get their marked up spread on the contract. Their used car dealers and debt collectors employ a bait and switch and/or debt discount tactic to deceive consumers systematically, but this is only the beginning of the process. 

When the dealers are selling RICs from SC, they know there is a hidden XXXX fee and a predetermined GAP contract sale, the dealers intentionally do not disclose the XXXX service charge that SC set up with XXXX XXXX ( which illegally kicked back a significant portion of the service charge to SC ). 

Santander has also monopolized and seduced these dealerships through their deceptively generous contract spreads. It is evident that SC controls these dealers because they have multiple monopolized points of contact on every single RIC. If every RIC from their dealers is assigned to SC and has SCs GAP contract on it, then SCs XXXX fees should be disclosed, they are not. There are no other companies used in these solely Santander RICs. No competitive pricing for GAP insurance is ever disclosed or offered, and it is intentional. 

In 2013, Santander knew that 50 % of the consumers that made up 85 % of their portfolio were expected to default. Thats estimated to be 425 out of 1000 consumer loans. With 850 estimated being subprime borrowers. Their network of dealers has also been caught reporting exaggerated incomes on behalf of consumers to get increasingly higher and impractical loan amounts. 

SC intentionally finances personal household use assets that roughly 425 out of 1000 consumers will never get to keep. Then, they repossess assets after the consumer defaults, sell the vehicle in a rigged private sale ( back to their network of dealers ) and pocket the instant cash. After this process is complete, they pawn the unjustifiable deficiency balance to a 3rd party debt collector to increase their liquidity. 

The key parts of this creative accounting practice start with the planning phase, which is to ensure that most subprime RIC consumers will default. If they dont default, Santander is still receiving the state maximum interest rates amortized over the course of a 72-month contract ( or better, due to their deceptive deferred payment backup plan ), either way it is clearly a win/win for them. 

Part of the deceptive methods used by SC are : Hidden XXXX   fees ( intentionally not disclosed during the RIC sale and financing process ) NSF fees and late fees ( which are a great source of income from their subprime borrowers ) State maximum financing rates ( from incentivized dealers that do not disclose any other available rates ) Deferred payments ( that do not disclose principal balance and interest changing effects ) The profit spread ( bait and switch RICs to ensure that SCs network of deceptive dealers will claim SC is the only company that will provide financing for them, which is typically untrue. ) Santander Consumer USA and their network of dealers and debt collectors have lied to consumers from the formation of these unenforceable contracts. They are harassing consumers across the country by submitting these seemingly legitimate documents. They have legal capacity and are knowingly committing perjury by submitting deceptive statements and unenforceable contracts with legalese jargon in a seemingly legitimate presentation disguised as evidence to deceive a reasonable consumer or anyone viewing their documents. 

Since counterfeiting money is illegal, theyre basically counterfeiting assets and the valuation of assets to confuse consumers into giving cash to them, and then destroying the official/certified/verifiable documents in case they are investigated. 

SCs dealers are incentivized to sell intentionally marked-up GAP contracts, this process consumes nearly all the subprime borrowers down payment. Cha-ching, instant cash back to SC! Not if, but when the consumer falls behind on payments, they are offered a life-saving deferred payment option, which does not disclose principal balance changes and interest effects. If they can repossess the car before the GAP insurance is used, they receive a bigger cash payout. If not, the state maximum rate is still in effect and the auto-refinancing option that the dealer promised is no longer feasible. This leaves them multiple options and minimizes the chance of any financial loss on their behalf. The seemingly free money is then left on the table for their intended taking. 

The next part of the process is the repossession, followed by harassing letters that intimidate confused consumers. Then, SC demands payment of the full balance on the entire account. 

After all these seemingly harmless events take place, the next step in SCs scheme is to underbook the value of the repossessed asset and sell it in a rigged private sale. The vehicles never make it to a public auction. The rigged private sales allow the repossessed asset to go right back into their incentivized network of RIC dealers and the process begins again. 

After Santander destroys their certifiable copies, they begin selling unverifiable and/or altered copies of the documents to their 3rd party debt collectors. Hence why all their original contracts are destroyed/missing, and their claims are all coincidentally and conveniently unverifiable. 
This makes for an extremely attractive sale to XXXX XXXX and SCs network of third-party debt collectors because the deficiency debt is now overbooked, and the spread difference is conveniently tucked away in Santanders valuation surplus accounts. 

SC has not obeyed the cease and desist orders issued by the DEDOJ and are continuing to defraud consumers through this process. They have further violated their agreement with the courts, the DEDOJ, and Massachusetts Attorneys General through their current and  continuing actions. SC is still attacking confused consumers in every single state across the country. They have subverted the mandatory repurchase of their bogus and fraudulent deficiency balances and are continuing to bully and spam attack consumers and local courts across the United States. 

Santander Consumer USA and XXXX XXXX mutually and privately created a loophole program that pigeonholed and coerced their RIC consumers to use this illegal XXXX service. After the consumer used the XXXX, XXXX XXXX kicked back a significant portion of the service charge to Santander Consumer USA which they made significant profits from. They have been issued orders in multiple settlements to cease their deceptive and unlawful practices, collections and repossessions. It is evident here that this company willfully turns a blind eye to the reprimands of the judicial system and the welfare of American consumers who have been systematically lied to and believe they have nowhere else to go.

Company response to consumer: Closed with explanation