Santander Consumer USAhigh interest rate = predatory lending

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This review was posted by
a verified customer
Verified customer

I have been paying a car note with sandander for over 4 years, I inquired as to pay-off. Current pay-off was still more than initial car loan, even more appalling was an interest rate of 25%, compounded daily. The original note was with drive finance and shortly thereafter transferred to santander. I do not recall ever signing a note such as this one, with such an escalated interest rate, this is truly unreal. Is this not a usury law violation? Currently seeking legal counsel.

Responses

  • Ma
    Maria Em. Jan 24, 2017
    This comment was posted by
    a verified customer
    Verified customer

    I purchased an 07 in 2013 for $13, 170 with an annual percentage rate of 24.99%. 4 years later, I have paid over $16, 000 into the vehicle and they said I still owe them another 15, 000. That means, I will have paid over 30, 000 for a vehicle that was already 6 years old when I bought it. Florida usury law says max allowed amount is 18% but because of the arbitration agreement, I can't even sue them. The vehicle now has a blown engine and I dont' want to ruin my credit by sending it back to them. Does anyone know how to confront them on the usury law violation without taking them to court?

    0 Votes
  • An
    Andrea Laroche Jan 18, 2016
    This comment was posted by
    a verified customer
    Verified customer

    My fiance and I are going through a very similar situation with Santander Consumer USA. IN April 2014 my fiance financed a vehicle with Condor Capital Corp through the local dealership. Approximately 1 month later, we received a call to return the car, as Condor was prohibited by law from writing auto contracts in the states of MASS, NY AND CT. They never paid the dealership for the car and they wanted it back. Being in a very bad situation financially from going through a divorce, my fiance was in desperate need of a vehicle so that he could keep his job to support his children. He told the dealership that they better figure it out, because he needed the car (which was a PIECE OF CRAP 2012 FORD FIESTA.. BUT THE ONLY CAR THEY WOULD FINANCE HIM IN). A few days later they called and asked him to come in to sign the new paperwork and we would be all set. They did not disclose that it was a simple interest financing with daily compounded interest of more than $8.00 per day and an annual interest rate of 21.9%. They also did not disclose that they wrote the new contract back dated to the first day we drove the car off the lot, in turn causing us to be 2 months behind in payments as soon as Santander took over the fiancing The sticker price was $13, 995, we have made nearly $5, 000 in payments and only $75 has been applied to the principal balance. To make matters worse, the payoff is now MORE than the original sticker price on the car and we cannot get out of the contract despite being pre-approved for a new financing at 6.9%. No one will help get us out of the fiesta. The car is now only worth about $3, 000.00 and we now have about $10, 000 in negative equity. NO dealership wants to take that kind of loss. Every day we are stuck the car depreciates in value leaving us with more and more negative equity. I read that in Massachusetts it is considered criminal usury to offer financing over 20%. Especially when the dealer does not disclose this information when the new financing was put into place. I believe predatory lending took place, since they knew my fiance was backed up against the wall with NO choice. He was thrown out of his home and left with no car, no home, nothing. The dealership took advantage of his situation and this too should be illegal. Should we obtain counsel? I do not know where to start or if we can even afford an attorney at this point.

    0 Votes
  • Sh
    S. Harding Apr 01, 2014

    I got a loan on my car (using it as collateral) of $3, 700.00 in 2012. I've paid $163.+ / mo (sometimes more) since then and during this period have paid, I'm sure, more than the original amount or $3, 700.00, but I still owe the same amount I owed since the beginning of 4, 183.00. plus extra fees. I actually owe, according to the statement they send me, over $4900.00. How is this possible. I also need to find out how to take them to court about this as this is ridiculous and is obviously a case a usurious interest rate and corrupt loan practices

    0 Votes
  • To
    Tony Puczylowski Sep 01, 2013

    I am having the same issues with Santander. I make payments early, pay more than the amount due, .. However, they apply large amounts to interest and interest accrues daily (approximately $8 a day, regardless of how early I pay).. This was not the understanding I had when I signed this loan. Not to mention random "miscellaneous fees" which NOONE can explain. How can this be legal?!!

    0 Votes
  • 22
    22Denise Jan 24, 2013

    I am in the same situation.

    0 Votes
  • Du
    DuWayne Jones Sep 07, 2012
    This comment was posted by
    a verified customer
    Verified customer

    in 2008 We agreed to a loan of 31, 000.00 at 12% which was bad enough, but now I find that they increased my original loan amount to 38, 000.00 and I'm paying at a 24% interest rate, I will have paid them 45, 0000.00 or more for a 2003 used infinity that is falling a part. They have charged me with compound interest and unimaginable fees that no one can explain. I filed a complaint with the BBB but they don't want to deal with this issue because it's clearly heading toward litigation. We just want them to pick up the junk at this point and willing to deal with it from there. I'm looking for a lawyer at this this point. Any good suggestions out there?

    0 Votes
  • Bg
    bgina Jun 09, 2012

    i am in the same situation. i have been paying since 2008 and have paid 14, 603 dollars and still have a balance of 15, 938 dollars. when the car was only for 18, 000

    0 Votes
  • 99
    99% interest 1% principal May 18, 2012

    Hello, I have been paying on a loan for 5 years and I just looked at how much I have paid over the years. My vehicle loan was approximately $19, 000, I have paid almost $42, 000. This is ridiculous! I don't understand why more than half my payment goes to interest. I am 692.72 and only 125.00 goes to the principal.

    0 Votes
  • Rm
    rmeza Apr 19, 2012

    i am in the situation.

    0 Votes

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