Consumer complaint received 2026-01-29 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: SANTANDER HOLDINGS USA, INC.
State: TX

Complaint narrative:
My vehicle was stolen in XX/XX/XXXX. I immediately notified the lender ( Santander XXXX XXXX XXXX and a XXXX  ( XXXX XXXX XXXX ) claim was opened. I complied with all documentation requests and submitted the required documents on XX/XX/XXXX & XXXX to XXXX. 

Despite this, the lender continued accruing interest and reporting my account as past due while the XXXX claim was pending. 

On XX/XX/XXXX, XXXX issued a payment of {$2700.00}. At the time the payment was applied, the lenders own system showed a balance of {$2600.00}, meaning the payment exceeded the balance. However, the account was not corrected to a XXXX balance. 

The lender is now claiming I owe additional {$300.00} due to interest and late charges, even though : The vehicle was a total loss. 
A payoff amount had already been established. 
Any payment deferral was approved The only late payment occurred solely due to XXXX processing delays. 
XXXX confirmed approved deferrals do not count as missed payments. 

On XX/XX/XXXX, I contacted the lender regarding the remaining balance on my account following the XXXX payment. During that call, I was advised by a lender supervisor that the XXXX funds could be reallocated to correct the account and resolve the remaining balance. 

Relying on that representation, I expected the account to be corrected to a XXXX balance. However, during my subsequent call on XX/XX/XXXX the lender stated that the funds could not be reallocated and denied the correction, without citing any change in facts or providing a policy basis for the reversal. 

This inconsistent guidance caused further delay, confusion, and continued inaccurate past-due reporting, despite the lender having previously indicated that correction was possible. 

I have formally disputed this with the lender, but they continue to report or threaten to report a past-due balance, causing ongoing credit damage. 

This inaccurate reporting has been ongoing since for numerous months and is actively harming my credit during a pending housing relocation.

I am requesting : 1. Immediate correction of the account to a XXXX balance 2. Removal of all inaccurate late or past-due credit reporting 3. Written confirmation that the account is paid in full 4. Appropriate compensation for prolonged inaccurate reporting, financial harm, and emotional distress caused by this servicing error I am attaching documentation showing the payment exceeded the balance at the time it was applied, proof of timely document submission, proof of approved deferrals, and records of my dispute with the lender. I also have multiple phone calls between myself and Santander XXXX XXXX as well as calls between myself and XXXX, i have included the questions i asked as well as the answers provided by agent. 



XXXX XXXX XXXX ( XXXX  ) phone call Q1. Did XXXX receive all required documentation to process my claim? 
Answer : Yes. 

Q2. Can you confirm that all requested documents were submitted timely after the request in XXXX? 
Answer : XXXX stated they could not confirm receipt of the specific XX/XX/XXXX email but could confirm XX/XX/XXXX email because their system clears emails once a claim is completed. However, I have a complete email thread dated XXXX and XX/XX/XXXX showing all requested documents were submitted. 

Q3. Do approved payment deferrals count as missed payments under XXXX policy? 
Answer : No. XXXX confirmed approved deferrals do not count as missed payments. 

Q4. Did XXXX fulfill its obligation by issuing payment once the claim was processed? 
Answer : Yes. XXXX confirmed payment was issued in the amount of {$2700.00}. 

Q5. Does XXXX cover interest that accrues due to lender servicing delays after a vehicle theft? 
Answer : No. XXXX confirmed post-theft interest due to lender servicing is not covered by XXXX. 

Additional Note : XXXX stated they are unable to provide written confirmation, but did not dispute the facts above. 


Santander XXXX XXXX  phone calls Lender Agent : XXXX XXXX Number : XXXX Time : XXXX XXXXCST Q1. Can you confirm the payoff balance reflected on my account immediately before the XXXX payment was applied? 
Answer : Yes. The lender confirmed the balance was {$2600.00}. 

Q2. Why did interest continue accruing after the vehicle was stolen in XXXX and while a XXXX claim was pending? 
Answer : The lender stated that interest continues to accrue daily per the contract until the vehicle is paid off. 

Q3. Have I missed any payments on this account prior to the final payment delay caused by XXXX processing? 
Answer : The lender acknowledged that XXXX and XXXX were approved deferrals and stated there were no missed payments prior to the final payment delay. 

Q4. Are approved deferrals considered missed payments?

Answer : No.

Q5. I was previously told the funds could be reallocated to correct the balance. Why is that correction now being refused?

Answer : Lender say back office denied reallocation due to account not being paid in full and XXXX  not covering late charges.

Q6. Is the remaining balance currently being reported or scheduled to be reported as past due to the credit bureaus?

Answer : Yes.

These statements confirm : I complied timely with all XXXX documentation requests. 
Approved deferrals were not missed payments. 
XXXX fulfilled its obligation. 
The lender accepted a payment exceeding the balance shown. 
The lender continues to report or threaten to report an inaccurate past-due balance. 

This demonstrates a servicing error and inaccurate credit reporting that has continued despite notice. 


At no point was I notified that interest would continue accruing during the XXXX  claim process in a way that would create a post-payment balance, nor was I provided an opportunity to mitigate or dispute these charges before negative credit reporting occurred. The continued accrual, refusal to reallocate funds after representation by a supervisor, and ongoing inaccurate reporting constitute unfair servicing and inaccurate credit reporting.

Company response to consumer: Closed with explanation