Consumer complaints peaked in June with 657 auto finance-related complaints — the most reported since March.
Complaints declined 3.7% from June to July to 633, and with nine days left in the month, it appears August will continue the downward trend, with 208 auto-related complaints filed, down 67% from July, according to Consumer Financial Protection Bureau’s Consumer Complaint Database.
Since the end of May, 83% of auto finance complaints were related to vehicle loans and 17% were lease issues. Of the issues reported, 31% were linked to managing a loan or lease including billing, fees and problems with additional products or services purchased with the loan. Issues at the end of the loan or lease include not receiving the automobile title and challenges with paying off the loan; these accounted for 23% of the complaints.
Consumers also reported the struggle to pay loans, challenges getting a loan or lease, and incorrect information on the report among other auto-related issues.
Auto made up 13.5% of complaints across all credit product complaints, totaling 125,434 since the end of May. Santander Consumer USA was named in 203 complaints, the most of any lender in the same period. Ally Financial was named in 159 complaints and Hyundai Capital America was named in 103.
According to multiple legal experts contacted by Auto Finance News, it is as yet unclear what is driving this decline in consumer complaints.
Auto Finance Summit, the premier industry event, returns October 27-29 in Las Vegas. The Summit continues to bring together the best and brightest in the industry year after year for unparalleled networking and professional education. To learn more about the 2021 event and register, visit www.AutoFinanceSummit.com.