Consumer complaint received 2021-05-06
Company: HYUNDAI CAPITAL AMERICA
State: CO
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
KIA Motor Finance attempted to collect {$500.00} deductible on top of the settlement payment resulting from a total loss. Insurance company communicated settlement offer, whereby KIA Motor Finance responded with a Settlement Agreement/letter of guarantee on XX/XX/XXXX. XXXX  paid in full the agreed amount on XX/XX/XXXX and it cleared XX/XX/XXXX. In turn I paid my insurance deductible of {$500.00} to my insurance company XX/XX/XXXX. I was informed my account was settled and paid in full. 

On or around XX/XX/XXXX, I began receiving calls from KIA Motor Finance stating I owed them the deductible. I referred them to my insurance company to confirm deductible was paid and to make arrangements resulting in any miscommunication in the settlement I was not a participant within. KIA failed to reach out the insurance company and would not provide any justification of the debt other than I owed them. I disputed the debt in XXXX with KIA stating it was not my debt and collection should be with XXXX. XXXX XXXX of XXXX went as far as to contact KIA Motor Finance on XX/XX/XXXX, prior to issuing the final payment to ensure the settlement payment would fulfill all expectations and obligations for this claim ( documented in recorded phone call XX/XX/XXXX with KIA Motor Finance ). 

I am in the process of buying a new home and scheduled to close on XX/XX/XXXX. I was surprised to learn in late XXXX ( within 30 days of closing ) my credit score had plummeted 40 points due to a late payment comment made by KIA Finance to my credit report. In my multiple correspondences, KIA never indicated any intent to report to collections or a late payment while my debt was in dispute. 

Mind you this new debt appeared around XX/XX/XXXX, but no information was available until XX/XX/XXXX from KIA. Following my dispute towards the debt and attempts to connect my insurance representative XXXX XXXX XXXX ) with KIA Finance, KIA made a report without any efforts to produce validity of the debt, but rather continued with daily robocalls around XXXX to demand payment but would not send any documentation to show validity of the claim. On XX/XX/XXXX my insurance representative stated in the recorded phone call KIA Motor Finance made no claim to actual cash value of the vehicle versus their letter of guarantee for the settlement amount and it was not a common practice to make claim to an insurance deductible. KIA responded that I pay the money and dispute the debt with my insurance company. During that time XXXX provided me all documentation to show the written agreements between KIA and XXXX to support the claim from KIA to be invalid. On XX/XX/XXXX, I contact KIA Motor Finance and requested again a copy of any written agreement within my lease or otherwise whereby I agreed to pay the actual cash value of a total loss, thus supporting their claim to {$500.00}. KIA was unable to provide such documentation, nor dispute XXXX 's stance they were paid as agreed and the account was paid in Full. On XX/XX/XXXX, KIA Motor Finance agreed to submit the dispute and request for debt removal to their Payment Reviewal Department. On XX/XX/XXXX, KIA responded with the removal of the debt and account paid in full on XX/XX/XXXX. Thus the 30 day late payment that caused my credit to plummet right before closing on my new home is invalid. 
I do not have 30 days for this to be removed. KIA representative XXXX XXXX stated she would work with her credit department to expedite the removal, but I can not lose my home loan or home to an invalid credit collection effort and related false reports to my credit report. I need this corrected immediately. 
XXXX XXXX was the only representative that took the time to review my KIA documents to help me understand the debt and intent. She was unable to locate any agreement or written correspondence with me, and knowing I was an A+ borrower on my third KIA vehicle who could possibly lose the loan to her new family home, she attempted to correct the problem. While the debt is removed, the comment has not and I can not rely on the internal process alone with KIA to ensure this error is remedied without further personal damage to my finances and my dream home. I appreciate her help, as she was the most thorough of any rep at KIA. With that said, KIA Motor Finance acted recklessly by taking negative action on a consumers credit report while the debt was in dispute and should have investigated at the time of the dispute to confirm validity of the debt, clear up any miscommunications and show cause for collection. Rather, they damaged my credit over a misunderstanding and attempted to strong arm me into payment with daily collection calls and refusal to provide written documentation to the debt. 
I respectfully request the negative comment from XX/XX/XXXX to be removed from my report and my credit score restored without penalty based on the attached documents confirming payment in full on XX/XX/XXXX from KIA Motor Finance and related documentation to settlement agreement, deductible payment to insurance company, etc.

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