Consumer complaint received 2024-12-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Credit denial
Company: Mercedes Benz Financial Services
State: MI

Complaint narrative:
XXXX XXXX XXXX, trustee XXXX XXXX XXXX LIVING XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX XX/XX/XXXX, XXXX XXXX XXXX XXXX XXXX XXXX Customer Service Department XXXX XXXX XXXX Denial of Credit and XXXX XXXX XXXX XXXX for XXXX Dear Sir/Madam , I am writing to formally challenge the denial of my recent application for credit, which I believe constitutes discriminatory conduct and potential violations of both consumer protection laws and securities regulations. The denial letter I received serves as evidence of this discrimination, and I assert that my rights as a federally protected consumer have been directly violated. 

Violation of Consumer Protection Laws : As a consumer, I am entitled to fair and equal treatment under the Equal Credit Opportunity Act ( ECOA ) ( 15 U.S.C. 1691 ), which prohibits discrimination in credit transactions on the basis of race, gender, age, or other protected characteristics. The denial of my credit application based on my credit profile and history, without offering reasonable and specific accommodations or alternatives, appears to contradict the principles of equal consideration as mandated by ECOA.

Additionally, I believe that the failure to provide a clear, thorough, and non-discriminatory explanation of the denial is a violation of the Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681 ). Under FCRA, when a consumers application is denied due to information in a credit report, the lender is required to provide the specific reasons for the denial, along with a copy of the credit report used to evaluate the application. The reasons given in my denial notice ( e.g., high utilization, no comparable credit, low FICO score, lack of prior auto history ) are vague and do not meet the clear disclosure requirements under the law.

Violation of Securities Laws : I am also concerned that the denial of my credit application may involve unlawful practices under securities laws, particularly as it relates to the Securities Exchange Act of 1934 and the Securities Act of 1933. When I submitted my application, I entered into an implied agreement that effectively treated my application as a financial asset, akin to a security, as defined under U.S. securities laws.

In accordance with the Securities Exchange Act, any application for credit may be construed as a security in the context of asset-backed securities ( ABS ). Specifically, my application, when submitted, becomes a part of the collateral required to issue an extension of credit. XXXX XXXX XXXX XXXX through its financial partners and affiliates, is required to disclose whether my credit application has been securitized, pooled, or sold as a security in the secondary market. The failure to disclose such practices constitutes a violation of transparency obligations, including the ABS-15G filings with the Securities and Exchange Commission ( SEC ) , which mandates that asset-backed securitizers disclose repurchase requests and the status of underlying assets.

Alleged Securities Fraud : Furthermore, it appears that my credit application, which is a form of financial instrument or asset, may have been improperly pledged or used to create collateral in an asset-backed security transaction. Securities fraud ( as outlined under the Securities Exchange Act of 1934 ) can occur if XXXX XXXX XXXX XXXX XXXX of its partners misrepresent the status of credit applications and loans as part of a larger securities transaction without providing adequate disclosures to the consumer. 

Under the provisions of the Securities Exchange Act, it is unlawful to extend or maintain credit without proper collateral, and any such credit may be subject to fraudulent activities if the transaction is structured in a way that misrepresents the true nature of the financial relationship between the parties. Based on my understanding, if my credit application has been securitized without my consent or knowledge, this would constitute a violation of federal securities laws.

Request for Immediate Action and Reversal of Denial : I respectfully request that you immediately provide a detailed explanation of the following : 1. Confirmation of Compliance with ECOA and FCRA : Provide clear, specific reasons for the denial of my application, as required by the Equal Credit Opportunity Act and Fair Credit Reporting Act, including the credit report and scoring models used in the evaluation process.

2. Clarification of Securities Involvement : Disclose whether my credit application has been used to create collateral or securities, and if so, provide the necessary disclosures in accordance with the Securities Exchange Act and the relevant SEC regulations ( including ABS-15G filings ).

3. Reconsideration of Credit Application : In light of the above, I ask that XXXX XXXX XXXX XXXX XXXX application, reverse the denial, and offer an alternative credit extension or provide me with the opportunity to rectify any perceived issues with my credit profile. If necessary, I am prepared to take further actions to ensure my rights are upheld. 

Further Actions : If this matter is not resolved promptly and to my satisfaction, I will be forced to escalate this issue by filing a formal complaint with the Consumer Financial Protection Bureau ( CFPB ), the Securities and Exchange Commission ( SEC ), and other relevant regulatory bodies. I will also consider seeking legal counsel to pursue any legal remedies available under federal and state law, including actions related to securities fraud and consumer rights violations. 

Thank you for your immediate attention to this serious matter. I expect a response within [ XXXX ] business days, and I trust that you will honor your legal obligations to provide the necessary disclosures and reconsider my application in a fair and non-discriminatory manner. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation