Consumer complaint received 2026-05-25 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: SANTANDER HOLDINGS USA, INC.
State: NJ

Complaint narrative:
I am filing this complaint regarding what I believe to be unfair, deceptive, and predatory lending and dealership practices related to the purchase and financing of a used XXXX vehicle purchased in XXXX from a XXXX dealership and financed through Santander Consumer USA. Initially, I went to the dealership intending to purchase a vehicle under my own name and authorized the dealership to run my credit one single time for financing purposes. Instead, the dealership proceeded to run my credit repeatedly, totaling approximately 11 separate inquiries over the course of two days, without my understanding or informed consent for multiple hard inquiries. These excessive inquiries negatively impacted my credit profile and caused unnecessary financial harm. During the first day of negotiations, we attempted to return a leased vehicle and intended to purchase that leased vehicle instead. At one point, we decided to leave the dealership because the financing terms and process were not working as expected. Despite us leaving, the dealership continued running financing applications and credit checks until they eventually obtained financing approval through Santander Consumer USA. The vehicle that was ultimately financed was not the original vehicle we had intended to purchase. Instead, the dealership selected and presented a different used vehicle that they stated was approved under the financing terms they were able to obtain. We felt pressured into accepting the vehicle because the dealership represented that this was the only option available for approval. The used XXXX vehicle was priced at approximately {$26000.00}, yet we were placed into a loan carrying an extremely excessive APR of 28.23 %. The monthly payments were approximately {$850.00} per month, which created an immediate and overwhelming financial burden on our household. At the time of purchase, we paid approximately {$7000.00} to the dealership. This amount included the down payment as well as payment for an extended warranty/service contract for the vehicle. We completed the paperwork, signed the financing documents, and left the dealership believing the transaction had been finalized. However, approximately two days after taking possession of the vehicle, the dealership contacted us and informed us that they had removed the extended warranty from the agreement because, according to them, there was not enough money to include it in the financing structure. The dealership stated that the funds initially intended for the warranty had instead been applied toward the loan transaction and advised us that we would need to repurchase the extended warranty separately within approximately one year of the purchase date. This post-sale alteration to the transaction was never clearly explained during the signing process and raised serious concerns regarding the accuracy and transparency of the financing and contract terms presented to us at closing. After the financing began through Santander Consumer USA, we discovered that despite making extremely high monthly payments, virtually none of the payments appeared to meaningfully reduce the principal balance of the loan. The overwhelming majority of the payments were being applied toward interest charges. As a result, the balance remained excessively high despite continued payments. We believe the dealership and lender engaged in deceptive, unfair, and predatory practices, including : Excessive and repeated unauthorized credit inquiries ; Misrepresentation of financing and vehicle options ; Failure to properly disclose financing terms and payment allocation ; Failure to properly apply our {$7000.00} payment toward the financed amount ; Alteration of warranty and financing terms after the sale was completed ; Issuing a highly burdensome and potentially predatory high-interest loan on a used vehicle.

Company response to consumer: Closed with explanation