Consumer complaint received 2018-08-08
Company: AMERICAN HONDA FINANCE CORP
State: NJ
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
We obtained our lease on XX/XX/XXXX. Beginning about XX/XX/XXXX we started receiving calls that our payments were behind. Which they werent. I'd fax information from bank to prove that we in fact made our payments on time. And again the following month it would happen again. On XX/XX/XXXX aXXXX XXXX XXXX XXXX XXXX, I received a knock at our door, there were 2 repo men at my door telling me to remove my carseats from van. That same week, my husband, the primary lease holder on account was admitted in the hospital unexpectedly and awaiting XXXX to XXXX XXXX XXXX XXXX XXXX. I was home alone with a toddler and an infant. I quickly printed all of my proof of payments and gave to the tow driver. He advised he had to take vehicle regardless of proof. My neighbors who were outside and observed what was going on all offered to pay whatever needed to keep the vehicle here. They refused. I immediately called Honda Financial while they were driving away with our only vehicle. The following business day, my father in law traveled to the tow yard that was holding the van, paid every fee required and took possession of the vehicle again. Every week we'd contact AHF following up on status of billing corrections. We'd fax documentation over and over again. Nothing seemed to be improving. Every representative would give a different reason or answer regarding status. Then in XX/XX/XXXX, I received a phone call that my payment was returned. I quickly called our bank to find out why, they advised it was returned from AHF. Id call AHF and they'd argue it was stopped. Between XX/XX/XXXX, XXXX XXXX, XXXX XXXX payments were auto debitted from our checking account. 9 were returned. When I contact AHF for assistance locating where they applied the 3 payments that I did not receive back. They denied. Demanded the last 3 months of payments owed or car would be reposes. a {$1200.00} was made ONLY to avoid repossession. Continuous follow ups were made to AHF providing details and requesting account be corrected again! They refused. Always replying with " our records indicate the payment was never received '' I contacted my bank and disputed those 3 " missing '' payments. 

XX/XX/XXXX, We began the purchase of our first home. As a family of XXXX ( XXXX toddler under the age of XXXX, we've out grown our 2 bedroom apartment that we've been in for nearly 8 years ) - When we found the perfect home for us ( conveniently in our price range ) we submitted our offer. Our bank recommended contact AHF again and explaining exactly what was going on and pleading to adjust credit reports to reflect accurate payment history ( since I have substantial proof to show payments have always been made on time ) I called XX/XX/XXXX and mailed at personal letter, including bank documents. On XX/XX/XXXX. No follow up. Since we were already fully under contract with a mortgage commitment of XX/XX/XXXX we obtained a new credit report. Which not only reflected 6 past due payments but now showed currently 60 days past due. But also stated last payment was XXXX - I contact AHF again. They argued that they havent contact bureaus since XX/XX/XXXX ( which clearly was inaccurate since the report reflected XXXX 's payment .... I sent another letter via fax and email. Explaining our situation, begging to please fix account to reflect ACCURATE payment information. I followed up again a few days later to confirm receipt of this. I received a very vague letter stating that our account is currently up to day but did not confirm previous payment corrections. With the 6 late payments in less then 2 years on our credit report, it has seriously hurt our chances to obtain a mortgage. If we proceed our interest rates would extend well beyond our budget and ultimately cost us beyond what we deserve. With the fear of losing this house and ultimately breaking the sale contract and losing our 10 % deposit already in escrow, I personally contact AHF again today. Where I was told " even with faxing the proof of payments, we will not adjust the records already submitted to the bureaus '' because I wanted to make sure I wasnt miss understanding what she just said, I repeated " so, youre telling me, even with all the proof in the world that i've provided countless times showing there was a huge error on AHF 's part in applying payments correctly to my account. I still suffer, when I've never been late or caused an issue with my lease account '' - yes, that was correct. not matter how many times I send proof, they will not update credit reporting records to reflect THEIR ERROR. I've tried in past to submit disputes to bureaus but they always come back as " creditor updated with accurate information '' We are not a little over 1 week away from a mortgage commitment and with this on the credit report, we will either have to increase deposit by another 10 % or lose EVERYTHING including the deposit already submitted. please please please help, what can we do?

Company response to consumer: Closed with non-monetary relief