Consumer complaint received 2017-12-03
Company: AMERICAN HONDA FINANCE CORP
State: CA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with additional products or services purchased with the loan

Complaint:
On XX/XX/XXXX Financed a used XXXX XXXX XXXX Sport from XXXX XXXX. We put down {$2000.00} as a down payment on the vehicle that was priced at {$19000.00} on XX/XX/XXXX.Prior to meeting with the finance department , we had instructed not to install the XXXX XXXX XXXX ( {$570.00} ), instead we cared more about the maintenance of the vehicle and opted for a service contract instead of the XXXX XXXX. We had signed a contract that day for 72 months, finance percentage of 19.15 %. Due to being an XXXX for XXXX XXXX XXXX ( XXXX XXXX ) an XXXX discount was to be applied to the purchase of a vehicle ; which was never applied. 

XX/XX/XXXX we came back to the dealership and without receiving any confirmation of the finance agreement nor the original copy of the finance contract ; we were persuaded to apply an additional {$500.00} to the vehicle, for a payment. The contract was then written up but the {$500.00} was applied towards our down payment and were told not to worry it still goes towards the car. The Finance Department added on four items to the list price of the vehicle : 1 )  XXXX {$990.00} 2 ) XXXX XXXX   {$570.00} 3 ) XXXX XXXX ( Extended Warranty ) {$2000.00} 4 ) GAP {$850.00} This added to the total cost of vehicle plus tax, registration fees etc. equaled {$23000.00} for the final financed amount. First payment of {$540.00} was due XX/XX/XXXX, but we had waited to hear back from Honda Financial Services ( HFS ) regarding the XXXX discount ; ten days later they informed us there was n't an XXXX discount applied and they would remove the late fee charge of XXXX for the month of XX/XX/XXXX. 

Additionally, the XXXX XXXX Device, which we said NO to, was still installed in the vehicle, except the wires that were connected were melting off, causing the wires to have a wet look and would hit the drivers left leg while driving, causing pain and distraction. Had taken the vehicle to another dealership to look at the security system and told to take it back and have it removed immediately but they could n't perform the removal. Took it back to the original dealership which did n't help the situation. 

Paid {$540.00} XX/XX/XXXX payment and XX/XX/XXXX the vehicle was involved in a collision which was 100 % the other party 's fault deemed from a police report taken at the scene. The vehicle was deemed a total loss and our insurance company informed us and HFS of the fair value to be paid out for the vehicle. 

Insurance Settlement Payment ( Principal ) {$18000.00} on XX/XX/XXXX GAP Paid ( Principal ) {$2400.00} Additional Supplemental Paid by GAP ( Principal ) {$680.00} on XX/XX/XXXX Thus far Principal amount paid from two payments and the above equal : {$21000.00} Leaving an additional amount of {$1800.00} for the principal amount HFS is claiming we still owe {$2700.00} and as of XX/XX/XXXX ; also reporting in XX/XX/XXXX 30 days late, XX/XX/XXXX 60  days late, XX/XX/XXXX 90 days late, with out any notice or communication that they were charging off the account. 

The following additional services added on are as follows : Cancellation of XXXX XXXX : {$1600.00} XXXX X 81.81 % = {$1600.00} {$1600.00} - XXXX ( fee ) = {$1600.00} {$1600.00} ( XXXX refunded to us ) WAS NEVER REFLECTED AGAINST REMAINING BALANCE XXXX was n't cancelled but that amount was never applied towards the principal amount either. After multiple days and long hours on the phone or at the dealership, HFS, GAP and the Dealership are all pointing fingers at one another stating that area deals with the refunds, postings, etc. and to contact them, so on and so fourth. 

During this procedure, we have been threatened that any missed payments will be reflected in our credit reports and will have an adverse affect. HFS representatives also acted rude with name calling, threatening tone of voice and failed to listen or help in any manner, as if we inconvenienced them. 

As of XX/XX/XXXX this account was moved to a charge off reported on our credit reports without any written notice of additional debt, failure to report posted payments, failure to cancel and apply refunded amounts, applying payments incorrectly, while incurring late payment fees of XXXX four additional times. 

If the payments were applied properly and all canceled services and additional accessories, which never worked, nor authorized because we did n't want them, then the account would have been paid off no later then XX/XX/XXXX or sooner. 

Additionally, we went back to the same dealership and financed with HFS a New XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation