Consumer complaint received 2018-06-13
Company: AMERICAN HONDA FINANCE CORP
State: TN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
A. Contained herein is a summary of my complaint summarizing why I believe that I am the victim of Fraud, Predatory Lending Practices, and Deceptive Business Practices. 

1. On XX/XX/XXXX, I voluntarily entered into a contract as what I told and believed to be, a co-signer for my ex-boyfriend and father to be of my child, for a vehicle loan to purchase a XXXX XXXX financed by the American Honda Finance Corporation ( AHFC ). At that time, I was XXXX years old, a full-time student working 15 to 20 hours per week, part-time/work study making {$10.00} per hour, a position I had held for 3 months prior. My only previous employment was a one-year job as a XXXX at an XXXX XXXX during my Freshman/Sophomore years in high school.

2. Based upon my above cited income and work history, I was told that I was approved to co-sign for my ex-boyfriends car with AHFC for {$34000.00}, at an interest rate of 4.59 % for 72 months. ( See enclosure ( 1 ) copy of contract received XX/XX/XXXX ) 3. My boyfriend at the time of the purchase worked as a XXXX XXXX XXXX at the XXXX XXXX XXXX where the vehicle was purchased. At that time, I was XXXX and would do anything for my boyfriend thinking that we were going to be together and he needed transportation to work and help support our coming child. I was surprised and questioned the finance officer on how I was approved there and could not be approved for my own car at a XXXX XXXX dealership, the same corporate entity. The finance person at the XXXX XXXX dealership said, since my Father was the primary borrower on my car, it would not interfere with me co-signing my boyfriends car.

4. After breaking up with my boyfriend/childs father, he experienced several employment challenges, sporadically made the payments and eventually defaulted on the loan. During the times when his payments were late, I received calls from the AHFC on numerous occasions informing me that the payments were not being made timely and that I was also responsible and that I should make the payments. My response was that I would make all of the payments if they would give me the car. They never responded to me nor agreed to my offer. 

5. In XX/XX/XXXX, When I applied for a loan to purchase a home, the mortgage loan office informed me that there was a derogatory mark on my credit in the form of a credit charge off by AHFC. ( See enclosure ( 2 ) 6. When I contacted AHFC, they informed me that the car had been repossessed, and sold for {$7800.00}, almost half of what the vehicle Market Average Price ( {$14000.00} ) per XXXX XXXX XXXX and XXXX XXXX XXXX by XXXX estimates for Private Party Value ( See enclosures ( 3 ) and ( 4 ) ) leaving a balance {$16000.00} that they are asking me to pay. 

7. When I asked why I was not afforded the opportunity to take over the loan, they replied that they had sent a letter to my ex-boyfriends address on XX/XX/XXXX informing me of the repossession and the intent to sell the car. In short, I was never contacted prior to the sale of the car and provided an opportunity to address the matter prior to the sale of the car. Yet AHFC had contacted me on previous numerous occasions when my ex-boyfriend was not making the payments on time. They apparently lost all my contact information when they repossessed the car. I requested a copy of the letter and received it on XX/XX/XXXX ( See enclosure ( 5 ) copy of letter mailed to me at ex-boyfriends address dated XX/XX/XXXX ) 8. I also requested a copy of the contract and payment history at that time. AHFC refuses to provide me a copy of the payment history and only sent me a copy of the contract and letter dated XX/XX/XXXX after a second request. When I received a copy of the contract, I discovered that I am listed as the Primary Buyer. 


B. I believe that my ex-boyfriend, the XXXX XXXX XXXX, American Honda Finance Corporation ( AHFC ) and other agents of the AHFC ( the recovered asset vender who sold car for half the average market value, intentionally conspired against me to commit Fraudulent and Predatory Lending Practices based upon the following reasons. 

1. Fraudulent Lending Practices : In that the XXXX XXXX XXXX and the AHFC in an effort to finance one of their employees ( my ex-boyfriend ), who they knew was not qualified for financing, knowingly misrepresented my position in the transaction took advantage of my trust and listed me as the Primary Buyer in the contract when I was told otherwise, while knowing that my credit worthiness did not warrant approval for such loan. As the Primary Buyer, I should I have been required to have insurance on the car prior to it being driven off the lot? I never insured that vehicle, nor was ever required to insure it by AHFC or XXXX XXXX XXXX. 
All parties received incentives to commit this fraud, my ex-boyfriend received a car, the Honda dealership received a commission, AHFC received principal and interest payments on the loan, and the XXXX XXXX XXXX received a vehicle for half its value, all to my detriment. 

2. Predatory Lending Practices : Various sites on the internet all state that there is no legal definition of predatory lending in the United States. However, all state that Predatory lending benefits the lender and ignores or hinders the borrowers ability to repay the debt. These lending tactics often try to take advantage of a borrowers lack of understanding about loans, terms or finances. Modern usage has expanded the term to include any lending practices that rely on a consumer 's lack of sophistication, or gullibility. Based upon my lack of credit worthiness at the time that I was duped into signing this contract, I should have not been approved for this loan. AHFC, XXXX XXXX dealership, and my ex-boyfriend conspired to commit a predatory lending practice against me. 
All parties received incentives to commit this fraud, my ex-boyfriend received a car, the Honda dealership received a commission, AHFC received principal and interest payments on the loan, XXXX XXXX XXXX received a vehicle for half its value, all to my detriment. 
Deceptive/Unfair Business Practices : My ex-boyfriend, the XXXX XXXX XXXX, American Honda Finance Corporation ( AHFC ), and XXXX XXXX XXXX engaged in deceptive and unfair business practices in that they intentionally deceived me by leading me to believe that I was co-signing for my ex-boyfriends car when it was known that he nor I possessed the credit worthiness demonstrating the ability to repay a loan in the amount of {$33000.00}. 
All parties received incentives to commit this fraud, my ex-boyfriend received a car, the Honda dealership received a commission, AHFC received principal and interest payments on the loan, XXXX XXXX XXXX received a vehicle for half its value, all to my detriment.

Company response to consumer: Closed with explanation