Consumer complaint received 2025-03-13 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — High-pressure sales tactics
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
I am submitting this formal complaint against Capital One Auto Finance regarding a fraudulent auto loan issued to me on XX/XX/XXXX, at XXXX XXXX in XXXX XXXX, Oklahoma. I am disputing this loan because it was granted under fraudulent misrepresentation, unfair lending practices, and inadequate cost disclosures, violating federal lending laws, including the Truth in Lending Act ( TILA ) and the Equal Credit Opportunity Act ( ECOA ). 

I have already contacted Capital One Auto Finance, but they have informed me that they will not provide any assistance, stating that I signed the contract and am responsible for the loan. Since Capital One refuses to investigate this matter, I am formally filing this complaint with CFPB and requesting immediate action.

1. Loan Was Approved Based on a Fraudulent Transaction I was originally looking for vehicle repairs or a rental when I stopped at XXXX XXXX, but through high-pressure and deceptive tactics, I was manipulated into taking out a loan for a XXXX XXXX XXXX XXXX The dealership : Falsely advertised a 3 % interest rate, but after hours of stalling, they pressured me into accepting a 7.9 % rate, later claiming 5.7 % was the lowest possible rate. 
Added a {$1500.00} trade-in without my consent, which I never agreed to, artificially lowering the loan amount to appear more favorable. 
Failed to disclose that I would have to pay additional DMV fees and taxes out of pocket. The dealership briefly mentioned that I would need to go to the DMV to complete registration, but they never clearly explained that I would have to pay separate sales tax and registration fees.

Since Capital One was the lender, I question whether they conducted proper due diligence before approving a loan that was based on deceptive and fraudulent sales tactics.

2. Capital One Approved My Loan Without Verifying My Ability to Repay ( Possible ECOA Violation ) At the time of the loan approval, I was unemployed and had no income, yet Capital One approved the loan without confirming whether I had the financial ability to repay it. Additionally : Capital One never asked me whether I had other outstanding debts, including my existing student loans.

Had they inquired, they would have known that I had student loan obligations and no source of income.

Despite my lack of income, they approved a five-year auto loan, which suggests potential predatory lending practices.

I understand that I initiated the financing request, but a responsible lender has an obligation to verify a borrowers ability to repay before approving a loan. Capital One had access to my credit report, which should have shown my lack of income and outstanding student loans, yet they did not take steps to assess my repayment ability before approving the loan. This raises concerns about whether Capital One engaged in unfair lending practices, approving loans without proper borrower verification and placing me in a financially burdensome and unsustainable agreement.

3. Failure to Fully Disclose Loan Costs ( Potential TILA Violation ) Under the Truth in Lending Act ( TILA ), lenders are required to clearly disclose the full cost of a loan, including all applicable fees and taxes. In my case : The dealership only briefly mentioned DMV registration at the beginning but never explained that I would need to pay separate sales tax and fees. At the time of signing, this was never clarified, nor was I reminded of this additional financial obligation.

Capital One approved and funded this loan despite the lack of full cost disclosure, which contributed to my financial distress and misled me about the total cost of the loan.

Given these issues, Capital One failed in its obligation to ensure that the loan met clear disclosure standards.

Company I Am Complaining About : Company Name : Capital One Auto Finance

Company response to consumer: Closed with explanation