Consumer complaint received 2025-04-12 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: SANTANDER HOLDINGS USA, INC.
State: FL

Complaint narrative:
Complaint Against : Santander Consumer USA Issue : Improper credit reporting / Unfair loan servicing practices Type of Loan : Auto loan originated in XXXX, due to mature XX/XX/XXXX Request : Removal of inaccurate or misleading late payment notations and review of payment application methods Complaint Description : I am submitting this complaint against Santander Consumer USA regarding their handling of my auto loan, which originated in XXXX and is scheduled to be paid off in XX/XX/XXXX. 
Despite making regular payments, my credit report shows over XXXX instances of XXXX late payments reported by Santander. 

This is the only account on my credit file showing negative payment history all other loans and credit accounts are paid on time. To date, I have paid over {$33000.00} toward this vehicle loan. 

I believe Santander is engaging in unfair and deceptive servicing practices, including : Applying payments to fees first, then reporting accounts as delinquent due to so-called partial payments Causing rolling delinquencies, even when monthly payments were made Continuing to charge fees that prolong or compound the delinquency status Mishandling payment arrangements made during financial hardship This brings me to an especially troubling part of my experience. During the COVID-19 pandemic, my wife was placed on life support and hospitalized for an extended period. We both work full-time, and I was suddenly forced to juggle work, family responsibilities, and hospital visits every day. 

As a result, I contacted Santander to request a temporary hardship arrangement, asking to defer XXXX payments, with the agreement that they would be added to the end of the loan term. 

Santander agreed to this, but still : Reported me as 60 days late Charged late fees Allowed those marks to remain on my credit report This was during a national emergency, and despite my proactive communication and request for help, Santander chose to punish my hardship rather than honor their agreement. 

In a broader context, Santander has already faced significant scrutiny and legal action for similar behavior. In XXXX, the company settled with XXXX states for {$550.00} XXXX over deceptive subprime lending and servicing practices, including failure to verify borrower income, placing people into unaffordable loans, and improper account servicing. 
XXXX XXXX XXXX XXXX XXXXXXXX What I Am Requesting : A full and transparent audit of my loan, showing how each payment was applied ( fees vs. principal/interest ) Immediate correction or removal of all inaccurate, unfair, or misleading late payment notations from my credit reports An explanation for why late payments were reported despite a hardship agreement being in place A formal investigation into whether Santander is continuing to engage in the same deceptive practices noted in the XXXX multistate settlement I have made every effort to meet my obligations, even through personal hardship. I am not disputing that I missed a couple of payments during a crisis, but I do dispute how Santander handled the situation, especially when they agreed to help and then penalized me anyway. 
I respectfully request the CFPBs assistance in correcting these unfair credit reporting practices. 
Thank you for your time and attention.

Company response to consumer: Closed with non-monetary relief