Consumer complaint received 2022-02-08
Company: HYUNDAI CAPITAL AMERICA
State: AR
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Investigation took more than 30 days

Complaint:
In XX/XX/XXXX, I co-signed on a loan for my daughter for a new XXXX vehicle. About two weeks later, she was in a car accident that resulted in the vehicle being a total loss. I immediately filed a claim with our insurance company and continued to make the payments on time until the loan was paid in full by our insurance company. The insurance claim process took extra time to settle because the car was brand new and had never been titled before. Title processing, receiving the new title, receiving the new title from the state, and transferring to XXXX, and finally to the insurance company took about 3-4 months. The insurance company required a title to cut a check. Regardless, I continued to make the loan payments on time. No payments were ever past due, and the loan was eventually paid in full. As a matter of fact, I had made an extra payment, that was eventually returned to me by XXXX, because I was worried XXXX  would not receive the loan pay off from the insurance company before the last payment was due. 
After five months, in XX/XX/XXXX, XXXX  finally received the pay off check from XXXX. 
My credit reports did not indicate any late payments or charge off until after the loan was paid in full. XXXX reported to the credit bureaus that the loan was a charge off and reported I was late on two payments in XX/XX/XXXX and XX/XX/XXXX. I WAS NEVER LATE! I made monthly payments by phone to XXXX each month, before the end of the grace period. As a matter of fact, the XXXX  representative told me to wait to make the monthly payment until the last few days of the grace periods in case they received the insurance pay off check before then. 
My credit is very important to me. My credit score was around XXXX before this. After the inaccurate XXXX reporting, it went all the way down to around XXXX. This inaccurate reporting has affected me and my credit in so many ways! The loan was never a charge off, and I always paid each monthly payment before the grace period ended, although thats not what is reported. 
I was told by a Hyundai Finance representative that the loan is being reported as a charge off because I didnt pay off the loan in full quick enough, as payment in full is required in a certain amount of days in a total-loss situation. ( They never informed me of this stupid policy while making my payments every month on the phone, knowing the whole situation. ) I was later told the only way for me to have avoided this credit reporting was to pay the loan off in full myself, in the required about of days ( I believe it was 120 days or so. ) I was informed I could send a letter to Hyundai Finance Disputes Department, and it had to be a letter form they did not have a phone number only written correspondence was allowed to this department. 
I have written the disputes department twice, and they have rejected my requests both times stating the disputed information is accurate as reported. 
I feel I am being punished even though I was completely financially responsible, and fully fulfilled my financial obligations. I continued to make the payments on time, every month until the loan was paid off by the insurance company claim. The pay off check was mailed directed to XXXX by XXXX insurance company. Apparently, the only way the charge-off reporting could have been avoided was to pay the {$28000.00} loan off in full myself, out of my own pocket, within their short time limit. How many people can actually do this? As long as I was making the payments on time, and they confirmed the insurance claim was processing, and all they were waiting on was the car title to pay off, why is a derogatory credit report being made? 
Ive tried very hard, for several months, to rectify this situation with Hyundai Finance ( verbally and written ) and they have refused to help. 
Please help me get the XXXX  charge-off and late payments reported to the credit bureaus corrected on my credit reports. 
Thank you so very much! 
Respectfully, XXXX XXXX XXXX : a As you can see, XXXX was not reporting any late payments in early XX/XX/XXXX, but once the loan was paid off, they are showing late payments and charge offs in XX/XX/XXXX and XX/XX/XXXX. So they reported on time payments, then change it once the loan was paid in full. It does not make any since.

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