Consumer complaint received 2019-10-07
Company: HYUNDAI CAPITAL AMERICA
State: MN
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Problems at the end of the loan or lease
Sub-issue: Termination fees or other problem when ending the lease early

Complaint:
On XX/XX/XXXX, I leased a XXXX XXXX from XXXX XXXX XXXX, a local dealership. On XX/XX/XXXX, I was rear-ended by a third party driver. I always had maintained insurance required by the lease with XXXX, but a claim with XXXX was not necessary as the other driver and its insurance company XXXX admitted 100 % fault and agreed to pay for the damages. 

I soon called Hyundai Capital America ( dba Hyundai Motor Finance or HMF ) to report the accident and to assist HMF with making a claim with XXXX The HMF representative told me that HMF will take care of everything and that I would not need to do anything. I soon drove the car to a local body shop approved by XXXX to get the car repaired, but XXXX declared the vehicle a total loss. XXXX adjuster subsequently told me that HMF and XXXX had settled for the full payment of the vehicle and that the matter was closed. 

In late XXXX, XXXX, I received a surprising demand/collection letter, dated XX/XX/XXXX, from HMF ( attached ) stating that I owed HMF {$970.00} for prior damage/condition adjustment of the vehicle. HMF falsely claimed that there was an insurance deficiency of {$970.00} for condition adjustment, even though the lease agreement does not require for such payment by the lessee. HNFs claim is also flawed as it decided to deal directly with XXXX and exclude me from the settlement process. When I called HMF on XX/XX/XXXX to ask for a copy of the settlement agreement between HMF and XXXX, HMF refused to provide a copy. I had to call XXXX to obtain a copy of the settlement agreement ( see attached ). 

Section 25A of the lease agreement ( see attached ) states that the lease is terminated in the event of a Total Loss, and that the lessee would owe the Total Loss Early Termination Charge outlined in Section 22C. Section 25B states that if the lessee maintained the insurance required by the lease, HMF would waive the Total Loss Early Termination Charge, when HMF receives the insurance proceeds for the vehicles actual cash value. 

There is no dispute that the there was a Total Loss or that I maintained the insurance required by the lease. The only dispute raised by HMF is that I owed {$970.00} to HMF for condition adjustment. XXXX stated in its settlement summary with HMF that the amount of wear and tear/damage is consistent with its age. In HMFs settlement letter to XXXX dated XX/XX/XXXX, HMF agreed to an insurance payment of {$17000.00} from XXXX as the full proceeds of the insurance policy covering said vehicle. In the settlement summary between HMF and XXXX, the Actual Cash Value for the vehicle was shown as {$17000.00}, which HMF accepted as full proceeds of the insurance policy covering said vehicle.

In many calls with HMF, I explained that I do not owe {$970.00} to HMF. HMF refused to listen and HMF has recently placed a negative credit information on my credit report with the major credit reporting agencies. I have always paid my lease payments on time.

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