Consumer complaint received 2025-12-02 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: United PanAm Financial Corp.
State: FL

Complaint narrative:
Below is a clear description and email that was sent to the involved parties regarding the lemon vehicle that was sold with internal engine or transmission or both problems. These mechanical problems were identified and reported to the dealership repair shop. 
XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX To XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX CC : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, which address below is not valid or active anymore according to the United States XXXX XXXX ) XXXX XXXX XXXX, XXXX XXXX XXXXXXXX XXXX XXXX Subject : Response to Your XXXX XXXX Replies XXXX XXXX XXXX XXXX ( XXXX : XXXX ) Dear XXXX XXXX and Representatives XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, I acknowledge receipt of your letter dated approximately XX/XX/XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX signed by XXXX XXXX XXXX ) and the email response from United Auto Credit ( UACC ) around XX/XX/XXXX. Thank you for taking the time to respond. However, UACC responses came after the XXXX period I specified in my XX/XX/XXXX official formal complaint letter, and they do not adequately addressor resolvethe substantive harms and demands I raised. I therefore reiterate and clarify my position, legal basis, and updated demands below, and respond directly to the points raised in your letter. 
Response to Your Letter ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) I have carefully reviewed your response. Below I address your key statements and why they fail to provide a satisfactory defense or resolution : XXXX. Date of Purchase / Inspection a. You state that I purchased the XXXX XXXX XXXX XXXX on XX/XX/XXXX, and that the vehicle was inspected and serviced before sale, with no indication of engine or transmission issues, believed to be false without proof or supporting documentation. 
b. Nonetheless, my mechanic inspections ( in XXXX XXXX XXXX  and XXXXXXXX XXXX  ) show serious, pre-existing engine and likely transmission defects issues that XXXX not have been visible or apparent on a pre-sale inspection but were known ( or should have been known ) to your dealership or your mechanic shop. 
c. Your statement that nothing in our inspection indicates those defects, and that I provided no evidence, is neither persuasive nor complete. I have diagnostic and inspection reports from certified service facilities confirming the severity of the defects, which I am prepared to submit as part of the state and federal agencies investigation or fact-finding review. 
XXXX. Service History a. You reference a complimentary oil change performed on XX/XX/XXXX, noting no concerns were raised then. While that is true, the absence of reported symptoms at that time does not negate the existence of latent or internal damage. Mechanical failures ( especially major powertrain defects ) can progress over time, and earlier inspections may not detect deeper issues without a full diagnostic. 
XXXX. Service Contract / A.U.L. Relationship a. You correctly note that the service contract is between me and XXXX, and you do not speak for them. I agree. However, that does not absolve XXXX XXXX XXXX XXXX of its responsibility : as the seller, you facilitated the sale, the financing, and the service contract. Your role in connecting me with XXXX. is part of the system by which I relied on being covered for exactly these kinds of powertrain issues. 
b. Your assertion that you have never seen anything to support my claim is an opinion not a defense of the factual existence of the defects or A.U.L.s contractual obligations. 
XXXX. Legal Basis a. You state that my arguments are unfounded and note that you are not an attorney. But your personal belief can not substitute for the legal obligations imposed on you under Colorado law. Dealers in Colorado must disclose known material particulars about a vehicle. XXXX CCR 205-1, Reg. 44-20-121 ( 3 ) ( h ) explicitly requires disclosure of all known Material Particulars prior to executing the sale contract ; an as-is disclaimer does not relieve a dealer of that disclosure duty. 
b. Under the Colorado Auto Industry Division regulations, a seller must give a written disclosure of all known material particulars before the contract is signed, and that document becomes part of the contract. 
c. Further, Colorado law prohibits willful misrepresentation, concealment of material particulars by a licensed dealer. XXXX. XXXX ( d ) includes willful concealment of material particulars as unlawful conduct. 
XXXX. Responses to My Demands You explicitly denied or rejected my demands in your letter. I address each of your responses below : My Demand Your Response My Rebuttal / Position ( XXXX ) Full rescission of the sale You say there is no basis or precedent and you refuse. 
I disagree : given evidence of pre-existing defects, non-disclosure of material particulars, and significant harm, rescission or compensation is legally justified. Under Colorado regulations, your disclosure obligations are independent of an as-is designation. 
( XXXX ) Payment for engine & transmission replacement You refuse, citing as-is sale and the passage of time. 
Even in an as-is sale, Colorado law does not absolve you of disclosing known defects. Your refusal, without investigating or acknowledging the legitimacy of my mechanic reports, is inadequate. 
( XXXX ) Full repair costs You deny for same reason as # XXXX. 
The same legal obligations apply : you can not hide behind as-is to avoid responsibility for non-disclosure of major defects. 
( XXXX ) Reimbursement for fees/ expenses You deny, calling them random and undocumented. 
I have documented towing invoices, diagnostic reports, and related costs. These are not arbitrary demands they are direct, provable expenses incurred because of the defects. 
( XXXX ) Correction of negative credit reporting You assert you dont report to credit bureaus, so you can not remove anything. 
While you may not report directly, your dealerships failure to disclose may have triggered my vehicles condition, leading to payment problems. UACC ( who does report ) needs to address this, but you share responsibility for the root cause. 
( XXXX ) Replacement service contract You refuse, stating I purchased an A.U.L. 
contract. 
While I understand that, you facilitated the contract and should assist in securing a resolution from XXXX. for valid powertrain issues. 
My Demand Your Response My Rebuttal / Position ( XXXX ) Extension of A.U.L. coverage You say that must be done with XXXX. 
I agree that part of the discussion needs to happen with XXXX. but I expect your cooperation in facilitating that conversation, not just pointing away. 
( XXXX ) UACC negative credit reporting You claim no knowledge. 
That is not sufficient. As the seller who initiated the financing, you have a duty to work with me and XXXX to correct credit issues caused by the defective vehicle. 
( XXXX ) UACC freeze/defer payments You again point to UACC, saying we are not UACC. 
While UACC is responsible for payment issues, I expect you to coordinate with them, especially given that the defective vehicle you sold underlies the problem. 
( XXXX ) UACC adjust interest or extend term Same as # 9 you defer to UACC.

I expect both you and UACC to work cooperatively to restructure the financing given the significant, documented mechanical defects that you allegedly failed to disclose. 
XXXX. Your Closing Statement ( I wish you luck ) Your apology is noted, but insufficient. My request is not based on speculative or alleged problems ; it is grounded in documented mechanical reports, financial harm, and legal obligations. 
Your characterization that my demands are somewhat arbitrary and the first four demands are for an item you purchased as-is under Federal law misses the point : Colorado law requires disclosure of known material defects even in as-is sales. 
Re-Emphasizing My Legal Basis To be clear : XXXX. Under Colorado XXXX regulation, a dealer must disclose all known Material Particulars before the sale, even if the car is sold as-is. 
XXXX. You can not avoid liability simply by labeling the car as-is the as-is clause does not relieve you from the duty to disclose serious, known defects. 
XXXX. Colorado Revised Statutes ( XXXX. ) make it unlawful for a licensed dealer to conceal or misrepresent material particulars. 
XXXX. Even though XXXX lemon law in its typical form may not apply to used vehicles, other consumer protections apply : used-car buyers may rely on implied warranties ( such as merchantability ) and claim for misrepresentation.

Reiterated and Updated Demand / Settlement Proposal Given the above, I again demand the following in good faith : 1. Rescission or Principal Reduction a. Either full rescission of the sale ; or b. A reduction in the UACC loan principal equal to ( a ) the cost to replace the engine and ( if needed ) transmission, and ( b ) compensation for the diminished value due to the undisclosed defects. 
XXXX. Repairs a. Cover the cost of a new engine ( and transmission, if required ) via a reputable, certified repair facility ; b. Reimburse all diagnostic, towing, and other out-of-pocket costs that I have documented. 
XXXX Credit / Financing Adjustments a. Correct or remove any negative credit entries tied to payment issues caused by the defective vehicle ; b. Freeze or defer payments while this dispute is resolved ; c. Adjust interest or extend my loan term to reflect a fair settlement given the circumstances. 
When we agreed to defer / freeze payments in the past, UACC granted hardship accommodations for the following periods : 10/12/23 two months 8/12/24 two months 6/25/25 two months While I appreciated those accommodations, they were not sufficient to fully address the financial damage Ive suffered. During each of those deferral periods, the vehicle continued to experience mechanical failures and complications. I still incurred costs for diagnostics, towing, and temporary transportation, all because the engine ( and potentially the transmission ) was failing precisely the defects I now claim were present at the time of sale. Because of that, freezing or deferring payments only shifted when I paid ; it did not prevent long-term financial strain. Moreover, once the deferral ended, I resumed payments under duress, even though the fundamental mechanical issues were never resolved.

Despite these deferrals, UACC reported late or missed payments on my credit report, which have further damaged my creditworthiness. Those negative entries were caused by circumstances beyond my control namely, ongoing mechanical problems and should be corrected or removed. 
Given the facts : XXXX. The deferrals were granted precisely because of the hardship caused by the defective vehicle. 
XXXX. The repeated mechanical breakdowns during and after the deferral periods demonstrate the hardship was not a one-time financial blip, but an ongoing issue directly connected to the defective condition of the vehicle. 
XXXX. Simply freezing payments without restructuring the loan ( adjusting interest or extending term ) has not adequately mitigated the long-term harm. 
Therefore, I demand : Correction or removal of all negative credit bureau entries that resulted from late or missed payments tied to these deferral periods and ongoing mechanical failures. 
A new freeze or forbearance while we resolve this dispute, unless and until the mechanical problems are fully addressed. 
A loan modification specifically, a reduction in interest rate and/or an extension of the loan term so that my payments more reasonably reflect the risk and burden I have carried due to the defective vehicle. 
XXXX. Service Contract Relief a. Facilitate issuance of a replacement extended service contract ( or renegotiation ) with A.U.L., or b. Secure an extension of my existing A.U.L. contract upon complete repair.

Next Steps If We Do Not Reach an Acceptable Resolution If you do not respond with a good-faith proposal addressing these demands within 10 calendar days of your receipt of this letter, I will take the following steps : 1. File a written complaint with the Colorado Department of Revenue , Auto Industry Division, using their relevant complaint form ( Unless resolution is agreed upon by all involved parties between XXXX ). 
XXXX. Pursue a civil lawsuit for fraud, breach of contract, and other available claims, seeking full damages ( repair costs, diminution in value, out-of-pocket expenses, attorneys fees, etc. ) ( Unless resolution is agreed upon by all involved parties between XXXX XX/XX/XXXX ). 
XXXX. Contact the Colorado Attorney Generals Office, asserting violations of the Colorado Consumer Protection Act ( and related statutes ), pending following recent responses ( Unless resolution is agreed upon by all involved parties between XXXX ). 
Preservation of Evidence Please be advised that I continue to preserve all relevant documents, including : The vehicle purchase and finance agreement ; The XXXX. extended service contract ; Certified inspection and diagnostic reports from mechanics ( XXXX XXXX XXXX ) ; Towing invoices, repair estimates, and related correspondence.

I expect you and UACC and A.U.L. to preserve all records related to the sale, inspection, financing, service contract, communications, and internal deliberations.

Closing I remain willing to resolve this matter in good-faith without litigation, but your belated and defensive response is not adequate. The severity of the defects, the financial burden I bear, and your regulatory and legal obligations demand a meaningful, structured resolution.

Company response to consumer: Closed with explanation