Consumer complaint received 2018-09-09
Company: BHFC Financial Services INC
State: AZ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
Back in XX/XX/2018 my spouse and I purchase a vehicle from a local smaller dealership by the name of XXXX XXXX XXXX XXXX XXXX. This was a second vehicle purchase/loan for us as we already had a primary vehicle and wanted to have this a secondary. The loan was financed through a company called BHFC Financial in  XXXX Arizona. Since our purchase we have went through 3 temporary tags, and the vehicle purchase is not able to be registered we have contacted the Department of Motor Vehicles and they have not received any paperwork since the purchase in XXXX but were to see on file the temporary tags. DMV asked us to file a complaint with the Office of the Inspector General which we have done as well as the Arizona Attorney General 's Office. 
We have made contact with the loan company regarding the situation with no resolve, and they keep saying they have nothing to do with paperwork or title on the vehicle. The DMV title search reveals there is no financial obligation or lien holder on the vehicle which there should be because it is financed. 

Now current to date the dealership is claiming they could give us plates and registration on the vehicle but they are trying to say that the financial institution sent them a default notice for non-payment 1 day ago and they need to buy the vehicle back from the financial institution. I contacted the loan company they had no such evidence of this but said I have to speak to the dealership. I went back to the dealership and they wont give me an answer about the title and registration issue but say yes the loan financing company is sending me back to them because we are in default. The manager had a note on his desk regarding this I asked to see it and he did let me view it, it was not a default notice but rather a late notice from XXXX with a handwritten photo copied statement from a man named XXXX alleging " Client not understanding '' I asked if I could have a copy of this document and they declined to allow me to have it. When I questioned the handwritten portion of the letter the manager of the Auto Dealer became defensive and asked me if I was accusing him of writing it? I replied I do not know however banks and lending institutions do not hand write documents. I informed the man that this document is from XXXX and we are in XXXX so it would not apply and we have a set payment agreement to be auto deducted from our checking account by BHFC on the XX/XX/XXXX. Manager of XXXX XXXX claims that bank is rejecting the payment arrangement. I informed them this is not a valid sale, or a financed loan and that is why you are asking me to turn in the vehicle willingly vs ripping it from my driveway..he did not reply. He asked if I would be interested in another vehicle or trying to re-structure this loan. I replied that if I am truly in default that you would not be offering me this option. 
3 days prior to all this I had our last 30 day expired tag that was issued and I had to call XXXX XXXX Police Department to get another tag, and they 20 minutes later issued me a 3 day tag, an apology and said they would have a clerk and permanent plate in which never happened. 

We need help with this situation due to the fact it is a predatory lending scam between this dealership and the finance company they use BHFC. If you go to their website http : //www.bhfcfinancial.com you will notice they do not have a secured website and are accepting payments through a general information form as well. This is the craziest situation regarding a vehicle we have ever had not sure what to do but any assistance in this matter would be greatly appreciated.

Company response to consumer: Closed with explanation