Consumer complaint received 2025-12-30 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: United PanAm Financial Corp.
State: CA

Complaint narrative:
I sent this letter to United Auto Credit : On or about XX/XX/XXXX, I purchased a used XXXX XXXX XXXX XXXX XXXX and financed the vehicle through United Auto Credit Corporation. Within approximately 90 days of purchase, the vehicle suffered a catastrophic engine failure and became mechanically inoperable. A licensed repair facility diagnosed the engine as knocking and determined that full engine replacement was required, with a written repair estimate of approximately {$10000.00}, exceeding the vehicles value. 
Because the vehicle could not be driven, it remained at the licensed repair facility. I promptly notified United Auto Credit Corporation of the mechanical failure, the vehicles inoperable condition, and the vehicles exact location. United Auto Credit acknowledged receipt of this information, requested repair estimates, and engaged in discussions regarding loan modification, insurance proceeds, and potential settlement. 
Despite having actual notice and the right of possession, United Auto Credit failed to repossess, secure, relocate, or otherwise protect its collateral. As a direct and foreseeable result of this inaction, the repair facility imposed storage charges and ultimately placed a mechanics/storage lien on the vehicle pursuant to California law XXXX 
I did not abandon the vehicle, conceal its location, or refuse cooperation. The vehicle was made available to the lender at all times. An insurance claim was filed ; however, the claim was denied because the loss was determined to be mechanical failure and not a covered peril. 
Notwithstanding its failure to mitigate damages after notice, United Auto Credit continued collection activity and adverse credit reporting that attributes fault to me and reflects an alleged deficiency balance inflated by storage fees and losses caused by the lenders own inaction. I have submitted formal disputes to XXXX, XXXX, and XXXX, and a complaint has also been filed with the Consumer Financial Protection Bureau. 
I believe this conduct constitutes violations of California and federal law, including but not limited to : Failure to mitigate damages and commercially unreasonable conduct under secured transaction principles and California common law ; Unfair business practices in violation of California Business and Professions Code XXXX, by allowing avoidable losses to accrue and shifting them to the consumer ; Breach of the implied covenant of good faith and fair dealing inherent in the retail installment contract ; and Violations of the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ) by furnishing inaccurate or misleading credit information, failing to properly investigate disputes, and continuing to report an alleged balance that is not legally enforceable. 
I respectfully request review and assistance to ensure corrective action, including waiver of any deficiency balance caused by lender inaction, cessation of collection activity, and correction or deletion of inaccurate credit reporting. 
Since, United Auto Credit has continued to report false statements and inaccuracies on my credit report. 

Date : XX/XX/XXXX Consumer Financial Protection Bureau I am filing this complaint against United Auto Credit for continued violations of the Fair Credit Reporting Act despite prior direct notice.

United Auto Credit is furnishing inaccurate and contradictory information to consumer reporting agencies, including : Reporting a balance higher than the highest balance ever owed Listing an impossible loan term Reporting mutually exclusive statuses ( open, charged-off, collections ) Misstating payment history and last payment date I have already contacted United Auto Credit directly and provided them the opportunity to correct these errors. They have failed to do so.

These inaccuracies are materially harmful and remain unresolved, necessitating regulatory review and enforcement.

I respectfully request the CFPBs assistance in compelling United Auto Credit to comply with federal reporting laws. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation