Consumer complaint received 2020-04-30
Company: AMERICAN HONDA FINANCE CORP
State: TX
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
Lease date : XX/XX/XXXX - Maturity : XX/XX/XXXX Lessor : XXXX XXXX XXXX XXXX XXXX. 
Dealership : XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX, Texas ) Vehicle : XXXX XXXX XXXX ( new ) Timeline : XX/XX/XXXX, traded in the leased XXXX XXXX XXXX with an XXXX dealership located in XXXX XXXX, Texas. 
Trade payoff quote for the XXXX XXXX on XX/XX/XXXX was {$18000.00}, as disclosed by my Honda Financial Services online portal account. However, the trade-in payoff quote was processed by the amount of {$18000.00} since the former was valid until XX/XX/XXXX only. 

Transaction was completed at XXXX the same day, XX/XX/XXXX. Then, on XX/XX/XXXX I was informed that, Honda was charging a {$350.00} in addition to the payoff check that had already been submitted by XXXX - and - Honda was holding the title from XXXX although the full payoff check had been submitted. 

I called Honda Financial Services on XX/XX/XXXX and was told that this was a " disposition fee '' and that was the origin from the amount. I got back to XXXX the same day asking to wave this off, but they said they couldn't as Honda was charging this fee to me. 

I then called Honda Financial Services on XX/XX/XXXX, and they denied my request to wave the {$350.00} as they state this fee was allegedly not being charged to me, but instead this is being charged to XXXX. 
During the same conversation, the lady that I talked to confirmed that they had also received the payoff amount for {$18000.00} on Friday, XX/XX/XXXX and that they notified XXXX on XX/XX/XXXX about the {$350.00} fee adding up to a total of XXXX. 

I got back to XXXX on XX/XX/XXXX, and was told that Honda Finance will not consider removing the {$350.00} disposition fee as I didnt purchase a Honda. With that, I called back Honda Financial Services today, XX/XX/XXXX - and before calling them, I took note of the following : 1 ) The Honda lease contract that I have has a notation at the bottom that reads " HF LS AOS XXXX ''. This is outdated when comparing to the 12 CFR Part 1013 ( Regulation M ), specifically 1013.4 ( d ) - which is noted to be most recently amended on XX/XX/XXXX. 

2 ) Honda lease contract, page 1, Federal Consumer Leasing Act Disclosures, Section 3. - Other Charges " Turn-in Fee ( If I do not purchase the vehicle ) - {$350.00} '' then a second line with N/A for description/category and a corresponding N/A for in place of a dollar amount. And, a " Total '' and a corresponding {$350.00} 3 ) Honda lease  contract, page 4, Ending My Lease, 30. Early termination Liability : If I am not in default, I may terminate this Lease early. If I decide to terminate this Lease early, upon return of the vehicle to Lessor, I will owe to Lessor : ( d ) the Turn-in Fee, as described in Section 3 above. 

During today 's ( XX/XX/XXXX ) call with Honda, I told them the above and for a moment the representative agreed with me that this charge was wrongful, as 1 ) I did not return the vehicle to lessor ( Instead I treaded it in on a different dealership ), 2 ) I pointed out that this contract was outdated in reference to its governing laws by the Consumer Financial Protection Bureau, 12 CFR Part 1013 ( Regulation M ), which he also agreed to. As he agreed, he said he was going to submit a request to wave this off and would get back to me in a week and we ended the call. Shortly, I recieved a call from him saying " they '' had declined my request to wave the {$350.00} off, on the basis of Honda lease contract, page 1, Federal Consumer Leasing Act Disclosures, Section 3. - Other Charges " Turn-in Fee ( If I do not purchase the vehicle ) - {$350.00} ''. 

I submit this request, as I disagree with Lessor, since they had a chance to disclose a scenario under the subject of " other charge '' in which I trade in the vehicle in another dealership than theirs, but they did not disclose that in the outdated contract. 

Since the title for the vehicle had been held by Honda from XXXX, XXXX decided to pay off the {$350.00} without my consent, in order to obtain the title from Honda, as it had been held for too long from XXXX. This was informed to me today by the Honda representative, and he said he was going to wrap things up to send them the title now. 
I subsequently spoke to XXXX, and asked them why they had paid this amount without my consent, and they told me they paid it because they didn't have access to stock the XXXX without the title. 

Finally, I found another customer who recently ( XX/XX/XXXX ) filed a complaint located in the XXXX ( XXXX XXXX  XXXX ) addressing the same issue as I am, and was resolved favorably to the customer. 

COPY OF CONTRACT ATTACHED

Company response to consumer: Closed with explanation