Consumer complaint received 2018-11-19
Company: World Omni Financial Corp.
State: GA
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
I am a XXXX XXXX XXXX currently on XXXX XXXX. I leased a new XXXX XXXX from XXXX XXXX XXXX on XX/XX/XXXX. However, the financing contract I entered regarding my vehicle was with XXXX XXXX XXXX ( XXXX ). My unit deployed on XX/XX/XXXX. I was unable to take my vehicle with me. Consequently, I elected to pursue my rights under the Servicemembers Civil Relief Act ( SCRA ) and terminated my motor vehicle lease early. I gave XXXX XXXX XXXX and XXXX XXXX XXXX written notice, a copy of my orders, and returned the vehicle on XX/XX/XXXX pursuant to 50 U.S.C. 3955 ( c ) ( 1 ). I received a Lease Termination Acknowledgement from XXXX XXXX XXXX the day I returned the vehicle. I deployed on XX/XX/XXXX. 
I received a bill from XXXX XXXX dated XX/XX/XXXX. The bill was for excess mileage, excessive wear and use, and a disposition fee which amounted to a total of {$1200.00}. When I returned from my deployment, I called and inquired about these fees. I was told that I exceeded my mileage allotment in the contract which resulted in the excess mileage fee ; there was a scratch on the vehicle that had to be repaired which resulted in the excessive wear and use fee ; and I received no clear explanation of a disposition fee. The mileage fee is especially peculiar because in my signed lease, I was allotted XXXX miles for the year. The vehicles odometer read XXXX ( XXXX ) miles when I leased it. I returned it with an odometer of XXXX miles. This is approximately XXXX miles below my contractual entitlement of XXXX miles. During my inquiry, I was told that because I ended my lease early, my mileage allotment was prorated based on the time I had the vehicle. I had the vehicle for approximately six ( 6 ) months and thus I was only entitled to XXXX miles ; roughly half of the mileage allotment for half the lease time. Consequently, I was approximately XXXX miles over my allotment and billed for excessive mileage use. These modification terms are absent from my lease contract with XXXX XXXX XXXX. However, I was told that this modification was implied when I spoke to an agent of XXXX XXXX XXXX. Contractual terms are not implied. Rather, ambiguous and non-existent terms are construed, strictly, against their drafter. 
I scheduled an appointment with a Legal Assistance Attorney. The attorney and I called XXXX XXXX XXXX to inquire about the contractual terms of the lease. The attorney spoke with a XXXX XXXX XXXX who reiterated that under the SCRA, they were permitted to change the terms of the contract and prorate the mileage given the early termination. The agent continued to express this belief despite the modifications inclusion in the agreement. The attorney explained to the agent that under the SCRA, early termination fees are explicitly prohibited. The attorney stated that, in practice, I was being punished for terminating my lease early by way of unilateral reduction of the miles I was permitted to use. The attorney went on to explain that the ability to prorate relates only to any unpaid amounts before the termination date of the vehicle. The agent did not understand. The attorney asked to speak with their legal counsel. The agent denied the attorneys request and refused to provide any additional information on their charging methods. The agent then defined the disposition fee as a fee to dispose of the vehicle and it is standard in all leases. The attorney explained to the agent that although a fee is named something other than a termination fee, one that acts like a termination fee in practice is expressly prohibited under the SCRA. The agent refused to remove the fees despite my lawful early termination and my adherence to the terms of the leasing contract. 
Under the SCRA, a failure shall not accrue for failure to comply with the terms of the contract during the [ contractual period ]. 50 U.S.C. 3933. Any unpaid amount preceding the effective termination date of the lease termination shall be paid on a prorated basis. 50 U.S.C. 3955 ( emphasis added ).  The termination date is defined in the SCRA as the day on which the requirements [ such as the provision of written notice, orders, and ultimately returning the vehicle ] are met. 50 U.S.C. 3955 ( c ) ( 1 ) ( A-B ). Unpaid fees before my termination are permitted. Fees afterward are not. Nowhere in the SCRA does any language suggest that a lease broken lawfully under the SCRA may be modified to account for fees charged after the lawful termination of the lease. What the SCRA does speak to is the inability for a lessor to charge any early termination fee. Shortening the mileage requirements to account for the Servicemembers use to date because a Servicemember legally terminated his lease and deployed, in practice, functions as a termination fee. Further, regardless of what a fee is labeled, a fee for returning the vehicle early, a disposition fee, appears to be an early termination fee. [ T ] he [ SCRA ] must be read with an eye friendly to those who dropped their affairs to answer their  countrys call. XXXX XXXX v. XXXX, 333 U.S. 1, 6 ( 1948 ) ( citing XXXX XXXX XXXX, 319 U.S. 561, 575 ( 1943 ) ). 
The Legal Assistance Attorney then contacted the dealership to better understand the contractual terms of my lease. He spoke with their finance department. The finance department operated as a third party to the contract. However, their department head was unaware of any prorated mileage terms in their contracts. The finance department reiterated that a XXXX mile lease usually means just that, regardless of the amount of miles the lessee chooses to use in the first six months.

Company response to consumer: Closed with explanation