Consumer complaint received 2017-10-12
Company: AMERICAN HONDA FINANCE CORP
State: CT
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
Honda Financial Services collected, and continued to attempt to collect, propery tax for XXXX and XXXX, even though they reclaimed a leased car in XXXX XXXX, and know that they sold it in XXXX XXXX. Four months of calls, still unresolved. HFS knows the debt is in error, yet will not give clear direction on how to resolve the issue, and keeps trying to collect the debt ( letters, calls ) even though they know the debt is an error on their part. Representative also make false/misleading statements on what I signed when I originally leased the car in XXXX. 

XXXX XXXX - Honda XXXX returned to dealer to close out lease XXXX XXXX - I returned plates to CT DMV. New systems was implemented, plate data was not properly migrated to the new system. Registration was deemed " expired ''. 

XXXX XXXX - HFS sells Honda XXXX XXXX XXXX - property tax bill from HFS received for {$270.00}. Thinking this was for XXXX, it was paid in full. Property tax was actually for XXXX, when I did not own the car. 

XXXX XXXX, XXXX - HFS sends bill for XXXX property tax. When called on this, they said they had received bills from the Town of XXXX, CT for property tax and had paid it. Said I needed to pay the bill, and then go to the town to rectify/get a refund. 

XXXX XXXX, XXXX - Received statement from Town of XXXX on property tax due for XXXX. 

XXXX XXXX, XXXX - Called HFS, they acknowledged that the car was sold, and I asked them to send proof of turning the car back in. They said they needed a statement from the Town Assessor that the property tax was not to be paid. 

XXXX XXXX, XXXX - Took day off work and went to Town of XXXX Assessors office. Spoke to XXXX XXXX XXXX XXXX XXXX XXXX. Reviewed that the plates were " expired '' and not cancelled, so they would continue to send property tax statements to HFS. Corrected that in their system. XXXX said the town would no longer send bills, and that HFS could submit for a refund. The Town can not refund me, since the bill was paid by HFS. We called HFS together. I explained the situation and opened case # XXXX. The HFS representative said that Honda has no process to cross check that property tax bills are valid, just pays them. She said she made note in the account that the property tax bill was in error and that it would not be collected. She said that at the close of the case, HFS would issue a pro-rated refund of the prior tax bill. I should owe for one month ( XXXX XXXX ) of property tax. She would also send a statement of when the car was turned in to me for my records. And to provide to the state if necessary. She indicated no further action was due on my part. 

XXXX XXXX, XXXX - Received Property Tax Bill from HFS. 

XXXX XXXX, XXXX - Recived Property Tax Bill from HFS. 

Called HFS. Spoke to 'XXXX XXXX She said that I needed to cancel my plates with CT before HFS could ask for a refund from the town. I recounted my prior conversation with XXXX and HFS rep. She said that was incorrect and that I signed a statement saying that I " would pay the property tax until I cancelled the plates for the car ''. Which meant I owed the tax. I asked her to send me a copy of the statement I signed. She put me on hold for 10 minutes. When she came back, she said that she did not have that documentation. I told her it was becuase I signed no such document and that it was against the law to lie to me to try and collect a debt. I asked for her supervisor. She refused. She referred me to an " escallation officer '', XXXX, who was not available. She said I need a cancellation statement from the state, indicating the plates were cancelled, or returned. I asked for a refund of the overpayment of property tax for XXXX. She refused. 

XXXX XXXX - Called back. Spoke to XXXX. Gave case number. XXXX was in a meeting and not available. I gave her XXXX XXXX 's number. XXXX said she would call and talk to XXXX, on how HFS can get a refund ( out of my hands ), and also make a note in the account that the account was in dispute and not to be collected. 

XXXX XXXX, XXXX - Even though the town does not need documentation on the plates, I submitted paperwork to the state for claiming loss of plates. A letter indicating this was received. 

XXXX XXXX, XXXX - Called XXXX, Town Assessor, she had paperwork from Honda saying the car was sold by Honda in XXXX. The car was removed from the tax roles permanently XXXX/XXXX/XXXX. She needed no further documentation, and was waiting for Honda to apply for a refund. The tax bill for XXXX would be for XXXX & XXXX XXXX and would be {$46.00}, of which I should owe half since I returned the car to Honda in XXXX. 

XXXX XXXX, XXXX - Called HFS, talked to XXXX. She read through my files and said the request for refund was submitted by HFS to XXXX. She indicated that there was a hold letter on my account from XXXX. She said she would put another hold on it to stop letters from going out. She said she would get back to me on the reimbursement. New case # XXXX. 

XXXX XXXX, XXXX - Called HFS, talked to XXXX. No indication of why I would be contacted. Said I need to send in plate cancellation documentation. Then said HFS had that from XXXX. She said the account was paused and not affecting my credit. I asked status. She said she did n't know and put me on hold to find out. XXXX, note in the account that they need plate cancellation receipt. I asked for a refund. She said that I needed to pay the amount. I then corrected her on the fact that I am owed money. She gave me two fax numbers to send the plate cancellation to. I expressed my concern that this has been going on for months,  with an ever changing requirment, and I need it to be done. My town does not need this document, so I have no faith that they will actually follow through. 

I then called the Town of XXXX and spoke to the tax assessor. He mailed a form to HFS on XXXX/XXXX/XXXX, and all is needed is for the form to be filled out and returned. No proof of plate cancellation is necessary. He indicated that HFS has not submitted the form. 

I faxed HFS the documentation, then sumbitted this complaint.

Company response to consumer: Closed with monetary relief