Folan v. Santander Consumer USA Inc.

CourtDistrict Court, D. Massachusetts
DecidedJune 18, 2025
Docket1:25-cv-11341
StatusUnknown

This text of Folan v. Santander Consumer USA Inc. (Folan v. Santander Consumer USA Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Folan v. Santander Consumer USA Inc., (D. Mass. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

) LAUREN ELIZABETH FOLAN, ) ) Plaintiff, ) ) v. ) ) SANTANDER CONSUMER USA INC.; ) GPI MA-DM INC. d/b/a/ MERCEDES- ) BENZ OF HANOVER; SANTANDER ) No. 1:25-cv-11341-JEK DRIVE AUTO RECEIVABLES LLC; ) SANTANDER DRIVE AUTO ) RECEIVABLES TRUST 2024-5; ) CITIBANK, N.A.; and EDWARD J. ) SACKMAN, Esq., ) ) Defendants. ) )

MEMORANDUM AND ORDER ON PLAINTIFF’S MOTION FOR A TEMPORARY RESTRAINING ORDER AND PRELIMINARY INJUNCTION

KOBICK, J. Plaintiff Lauren Folan brought this action in May 2025 to challenge the repossession of a vehicle that she purchased from defendant GPI MA-DM Inc. d/b/a/ Mercedes-Benz of Hanover in September 2024. To finance the purchase, Folan took out an installment loan from GPI, which immediately transferred its interest in the loan to defendant Santander Consumer USA Inc. When Folan failed to make monthly payments on the loan, Santander returned the loan to GPI. After granting Folan an opportunity to cure her default, GPI repossessed the vehicle in May 2025. Folan now claims that the repossession was unlawful because Santander did not, in fact, transfer its interest in the loan to GPI. She alleges that Santander instead securitized the loan in October 2024 and, consequently, had no interest to transfer to GPI before the repossession. Pending before the Court is Folan’s motion for a temporary restraining order and preliminary injunction, which asks the Court to order GPI to return the vehicle to her. For the reasons that follow, that motion will be denied. Folan has not demonstrated that she is likely to succeed on the merits of her claims because, among other reasons, she has not produced evidence

that Santander securitized the loan or that GPI acted unlawfully when it repossessed the vehicle. The uncontroverted evidence before the Court instead indicates that GPI lawfully exercised its contractual right to repossess the vehicle following Folan’s default. And although Folan may experience some hardship without a reliable mode of transportation, the balance of the equities does not favor preliminary injunctive relief. BACKGROUND I. Factual Background. The following facts are drawn from the amended complaint and the parties’ evidentiary submissions. On September 4, 2024, Folan purchased a 2025 Mercedes-Benz GLC350E4 from GPI for

$72,448.19. ECF 8, ¶ 10; ECF 12-1, ¶ 3; see ECF 1-3, at 1-2 (motor vehicle purchase contract). Folan paid $2,000 cash for the vehicle and financed the remaining purchase balance by entering into a retail installment sales contract (“RISC” or “loan”) with GPI. See ECF 8, ¶ 11; ECF 1-3, at 3-6. Pursuant to the RISC, GPI agreed to loan Folan $70,448.19 in exchange for her promise to make 72 monthly payments of $1,353.98. ECF 1-3, at 3. The RISC included a section titled “TRUTH-IN-LENDING DISCLOSURES,” which disclosed the material terms of the loan and informed Folan that she was giving GPI a security interest in the vehicle. See id. It also included an arbitration clause. See id. at 3, 6. Pursuant to a provision at the end of the RISC, GPI assigned its interest in the loan to Santander upon the contract’s execution. See id. at 6. Folan alleges that, on October 29, 2024, Santander securitized the RISC into the Santander Drive Auto Receivables Trust 2024-5. ECF 8, ¶¶ 14-15. In support of this assertion, she has submitted an “Auto Loan Securitization Analysis Report,” which is dated January 29, 2025, and was prepared by Arthur Bernardo, who identifies himself as an “Expert Analyst on Auto Agreement Asset Backed Securities Data.” ECF 1-4, at 35.1 The report identifies a “Delaware

statutory trust” titled Santander Drive Auto Receivables Trust 2024-5, which, the report asserts, consists of pooled installment contracts or loans “secured by new and used automobiles, heavy- duty trucks, light-duty trucks, SUVs and vans.” Id.at 7. The report also opines that the 2024-5 trust “matches the characteristics for securitizing” the RISC, but it does not provide any direct evidence that the RISC was, in fact, securitized. Id. at 17. Rather, the report acknowledges that the RISC might also be held by GPI or have been placed in a “private placement securitization.” Id. Folan’s first monthly payment was due on October 19, 2024. ECF 1-3, at 3. She failed to make this payment or any monthly payment due thereafter. See ECF 12-1, ¶ 6. Consequently, in December 2024, Santander notified GPI that it was transferring the RISC back to GPI because of

Folan’s default. Id. ¶ 7. The record does not indicate whether Santander communicated this to Folan, who, on February 10 and March 5, 2025, sent Santander two “Qualified Written Requests” concerning the RISC. See ECF 8, ¶¶ 17-18; ECF 1-5.2 Both requests demanded that Santander “apply funds from the Cash Collateral Deposit Account to satisfy” the outstanding balance on the RISC. ECF 1-5, at 2, 9, 14 (emphasis omitted). The requests did not, however, specify what “Cash Collateral Deposit Account” she referred to, nor did they indicate how that account was related to

1 Bernardo avers that he was certified through Bloomberg, LP’s “Ambassador Program” to run searches on the Bloomberg terminal, but he does not otherwise provide his credentials, academic training, or employment history. ECF 1-4, at 35. 2 Folan sent two copies of the second request, first on March 5 and then again on March 6, 2025. See ECF 1-5, at 9, 14. the RISC. See generally id. Folan alleges that Santander did not respond to, or acknowledge receipt of, either request. ECF 8, ¶ 19.3 On April 16, 2025, after Santander had transferred the RISC back to GPI, GPI sent Folan a notice informing her that she was in default of her repayment obligations under the RISC and

that she would be required to pay the full amount due on the loan by May 7, 2025, or risk having the vehicle repossessed. Id. ¶¶ 20, 22; ECF 12-1, ¶ 8; ECF 1-6.4 Folan did not pay the outstanding balance on the loan, and, on May 8, 2025, GPI repossessed the vehicle. ECF 12-1, ¶ 9. Later that day, GPI delivered written notice to Folan informing her that it had repossessed the vehicle and of her right to collect personal property that remained in the vehicle. Id. Folan subsequently collected her personal property. Id. GPI still holds the vehicle today. Id. ¶ 10. II. Procedural History. Before filing this lawsuit, Folan sued Santander in Bristol County Superior Court in January 2025, alleging that it had unlawfully denied a request to rescind the RISC that she had

sent one month after purchasing the vehicle. See ECF 1-3, Folan v. Santander Consumer USA, Inc., No. 25-cv-10006-ADB (D. Mass. Jan. 2, 2025). Santander removed the case to this Court and filed a motion to dismiss. See ECF 7, Folan v. Santander Consumer USA, Inc., No. 25-cv-10006- ADB (D. Mass. Jan. 30, 2025). Rather than oppose the motion, Folan voluntarily dismissed the

3 The substance of the March 5 request belies this allegation. In the first paragraph of that request, Folan writes: “I received your last correspondence which was unacceptable. You failed to answer the questions. Instead you attached a copy of the fraudulent note once again proving your intent to commit fraud.” ECF 1-5, at 9. 4 In his declaration, Frank Mazziotti, GPI’s general manager, states that the notice informed Folan that the total amount due under the loan was $72,072.64. ECF 12-1, ¶ 8. The notice in fact represented that Folan owed $74,072.64. ECF 1-6. case without prejudice on February 10, 2025. See ECF 9, Folan v. Santander Consumer USA, Inc., No. 25-cv-10006-ADB (D. Mass. Feb. 10, 2025).5 On May 13, 2025, Folan filed this lawsuit, naming as defendants GPI MA-DM Inc. d/b/a/ Mercedes-Benz of Hanover; Santander Consumer USA Inc.; Santander Drive Auto Receivables

LLC; Santander Drive Auto Receivables Trust 2024-5; Citibank, N.A.; and Edward J Sackman, Esq., who serves as counsel for GPI. ECF 1.

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Folan v. Santander Consumer USA Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/folan-v-santander-consumer-usa-inc-mad-2025.