Consumer complaint received 2024-08-21 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: Mercedes Benz Financial Services
State: CA

Complaint narrative:
This letter serves as a formal complaint and notice of rescission regarding the handling of my vehicle financing by Mercedes-Benz Financial Services . I assert that Mercedes-Benz has engaged in conduct that potentially violates the Securities and Exchange Act of 1934, the Privacy Act of 1974, and the Truth in Lending Act ( TILA ), among other applicable laws and regulations. 
Alleged Violations Securities Law Violations : It appears that my promissory note and certificate of indebtedness were securitized by Mercedes-Benz , potentially involving the sale of unregistered securities and engaging in trading activities without proper disclosures, in violation of Sections 5 and 12 ( a ) ( 1 ) of the Securities Act of 1933, and Section 10 ( b ) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The lack of transparency surrounding these transactions raises concerns about potential security fraud and manipulative practices. 

Privacy Act Violations : Mercedes-Benz 's prospectus indicates the use of third-party providers while disclaiming responsibility for payments transferred to them. This raises concerns about unauthorized disclosure of my personal and financial information, potentially violating 5 U.S.C. 552a ( the Privacy Act of 1974 ). 
Truth in Lending Act ( TILA ) Violations : I entered into the contract with Mercedes-Benz Financial Services XXXX without full disclosure of my right to rescind as required by 15 U.S.C. 1635, transparency regarding the consumer credit application process, or clarity on the self-liquidating nature of the financial instrument. 
I was provided with false and deceptive information regarding the down payment required to drive off the lot, further violating TILA 's prohibition against unfair or deceptive acts or practices ( 15 U.S.C. 1601 et seq. ).

Pursuant to 15 U.S.C. 1602 ( g ), I assert my status as the creditor in this transaction.

Additional Concerns : Mercedes-Benz is ignoring the arbitration clause in the contract, refusing to engage in arbitration to resolve this dispute, potentially breaching the contract and demonstrating bad faith. 

Mercedes-Benz is threatening repossession despite my notice of rescission and the potential invalidity of their security interest under 15 U.S.C. 1635 ( b ). Such threats may also violate the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq., specifically 15 U.S.C. 1692f.

Mercedes-Benz 's claims of no recourse liability for credit losses on retail installment contracts held by third-party credit providers contradict their reliance on such providers for credit approval decisions, potentially constituting deceptive trade practices. 

Furthermore, The bank received a purchase order, and the dealership was fronted money, not me. I provided the dealership with a security to generate profit ; therefore, the car should be discharged.

I have communicated this to Mercedes-Benz multiple times, but my concerns have been ignored.

I have revoked their security interest and taken back my fiduciary, revoking all previous fiduciary agreements.

I sent a promissory note, which they kept without discharging the debt.

I filed a 1099XXXX  with two 1099XXXX to offset the books, but they still have not sent me my title.

They are harassing me with threats of repossession, even after I informed them that I have two liens on the car, one in XXXX  and one in XXXX. Such threats may be illegal under 15 U.S.C. 1692f, as there may no longer be a present right to possession of the vehicle.

Despite the existence of an arbitration clause in the contract, Mercedes-Benz is refusing to acknowledge or adhere to this provision to resolve our dispute.

Additionally, Mercedes-Benz 's prospectus claims the use of third-party providers, yet they state they are not responsible for payments transferred to these third parties. This raises concerns about potential violations of the Privacy Act of 1974, as my personal and financial information may have been shared without my explicit consent.

Mercedes-Benz claims no responsibility for uncollected debts sold to third parties, and they further assert no recourse liability for credit losses on retail installment contracts held by third-party credit providers. However, they have indicated that the system used to approve my loan is a third-party credit provider. This creates a contradictory situation where they claim no liability for potential losses while simultaneously utilizing third-party services for credit decisions.

Furthermore, under 15 U.S.C. 1602 ( g ), I am the creditor in this transaction. I entered into this contract agreement with Mercedes-Benz Financial Services XXXX  without : Full disclosure of my right to rescind Transparency regarding the process of the consumer credit application being the financial asset ( 12 CFR 360.6 ( 2 ) ) Clarity on the self-liquidating nature of the paper ( 17 CFR 260.11b ( 6 ) ) I have reason to believe that Mercedes-Benz Financial Services XXXX XXXX willingly and knowingly took advantage of me and my consumer credit. 
I am NOT terminating or canceling this contract ; I am deducting my liability to pay on behalf of the obligor, as I have found several violations and fraud. Notice that pursuant to 15 U.S. Code 1635 ( b ) : upon receipt of this rescission, I am not liable for any finance charge or other charge. Any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission.

In addition, I was given false and deceptive information, as I was informed that a down payment of {$1400.00} was needed for me to drive off the lot. Notice that pursuant to 15 U.S. Code 1635

Company response to consumer: Closed with explanation