Consumer complaint received 2021-12-08
Company: HYUNDAI CAPITAL AMERICA
State: CA
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
This complaint relates to misapplication of payments and potentially fraudulent billing practices. In XX/XX/XXXX 2021 I entered into a new vehicle lease with Hyundai Capital America ( XXXX Hyundai Motor Finance ( XXXX HMF '' ) ). The lease provided for a monthly payment of {$410.00}, with the first payment due onXX/XX/XXXX and the next payment due onXX/XX/XXXX and monthly thereafter. The dealership writing the lease took a payment of {$410.00} and applied it to the first monthly payment. 

In early XXXX, I received a notice from XXXX XXXX encouraging me to sign up for autopay. This notice provided my account number, instructions to access their website and stated that my monthly payment was {$400.00}. I followed these instructions and enrolled in autopay, instructing HMF to pull the full amount due from my back account monthly on the XXXX of each month. I also enrolled in electronic communication with HMF. 

Each month through XXXX, I received an email telling me that my statement was ready and no other communication from HMF and I saw the monthly direct debit from my back account. On XX/XX/XXXX, I received an email with the subject line : " Your payment is now past due. '' This caused me to review my online statements since XXXX. I saw that a {$400.00} payment had been recorded on my account on XX/XX/XXXX and again on XX/XX/XXXX and then on the XXXX of each month through XXXX. Then starting XX/XX/XXXX my auto payment mysteriously changed to {$410.00}, where it remained through the last recorded payment on XX/XX/XXXX. It is my belief that the XX/XX/XXXX payment was for the XX/XX/XXXX payment date and each later payment was made 17 days in advance of its due date. 

I found no information in my statements indicating why HMF had changed the payment amount to {$410.00} and believe that this was done without my consent. In addition, none of the XXXX statements that I received from HMF to date made any mention of a late payment or the charge of a late fee -- they simply showed a payment amount due with no additional detail as to what that amount was comprised of. I believe that this is misleading to consumers and likely violates consumer protection laws. 

On XX/XX/XXXX I called HMF customer service and spent XXXX minutes on the phone with, speaking with supervisors in customer service ( XXXX XXXX XXXX and collections ( XXXX ) before my call with XXXX was disconnected. I was informed that my account was now XXXX days past due and that I would need to pay {$76.00} less XXXX late fee ( given as a curtesy credit ) amount to clear my account before anything further could be discussed. I explained that I had done everything correctly and that I believed that there was a calculation error on the part of HMF here. I was unable to get satisfactory answers to any of the following questions : ( i ) What happened to the XX/XX/XXXX payment? It would seem that this should have been credited to XXXX and each other payment credited to the following month 's amount due, thus avoiding any late fees ( ii ) Why did HMF change the amount debited from {$400.00} to {$410.00}? ( iii ) How my account could be delinquent given that it was set to auto pay of the full amount? ( iii ) How the account could have accrued numerous late fees yet only be XXXX days delinquent. I also asked to be provided with a statement that showed me that actual late fees that were assessed against my account, but neither of the supervisory representatives were able to do this. 

I would appreciate your assistance in cleaning up this account. I would also highly suggest that you undertake an investigation of HMF 's billing practices as it would be unusually for my account to be the only one for which mistakes such as these could be made.

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