Consumer complaint received 2024-11-16 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: IL

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX IL, XXXX XX/XX/XXXX USAA XXXX XXXX XXXX XXXX XXXX, Texas XXXX Subject : Demand for Rescission of Consumer Credit Transaction Under 15 U.S.C. 1602, 1635, 1679a, and Related Provisions Dear USAA I am writing to formally address violations under the Truth in Lending Act ( TILA ) concerning my recent consumer credit transaction with USAA. This letter serves as a notice of rescission due to insufficient disclosures regarding my right to rescind, as well as additional violations under relevant provisions of the TILA and the Fair Credit Reporting Act ( FCRA ).

Consumer Credit Transaction and Rescission Rights Pursuant to 15 U.S.C. 1679a, a consumer credit transaction includes any transaction involving an extension of credit primarily for personal, family, or household purposes. I purchased my vehicle primarily for my familys personal use. My loan contract explicitly identifies this transaction as a consumer credit transaction. However, I was not provided with adequate notice of my right to rescind the transaction as required by 15 U.S.C. 1635. Had I been aware of my right to rescind, I would have exercised this right when title issues and accusations of foul play arose.

Under 15 U.S.C. 1635 ( a ), creditors are obligated to disclose the right of rescission for consumer credit transactions. Because USAA failed to disclose this essential information, I am exercising my right to rescind the loan immediately. 

Applicability of 15 U.S.C. 1635 and Definition of Consumer Credit Transactions According to 15 U.S.C. 1635 ( 4 ), the right of rescission applies to all consumer credit transactions consummated on or after XX/XX/XXXX, making my loan eligible for rescission. Additionally, I am aware that residential mortgage transactions are exempt ; however, this exemption does not apply here, as the loan was strictly a consumer credit transaction, not related to a dwelling mortgage as defined in 15 U.S.C. 1602 ( x ).

Additional Violations Under TILA and FCRA USAAs failure to disclose my rescission rights constitutes inadequate disclosure per TILA standards, violating 15 U.S.C. 1602 ( k ). Furthermore, I have experienced a lack of transparency regarding issues with multiple car titles and misleading information in my credit report, which may represent further violations under the FCRA, specifically 15 U.S.C. 1681s-2. USAA knowingly reported inaccurate information, creating financial harm and exacerbating my concerns regarding the transactions integrity. 

Request for Remedy As a result of these violations, I formally demand rescission of my loan in accordance with 15 U.S.C. 1635. I expect to retain the vehicle and receive a full refund of all payments made to date, with finance charges zeroed. Furthermore, I request that USAA take immediate steps to rectify any inaccurate or misleading information reported on my credit report to reflect this rescission. 

Thank you for your prompt attention to this matter. Please confirm receipt of this letter and provide details on the steps USAA will take to honor this rescission request in compliance with TILA. 

Sincerely, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation