Consumer complaint received 2023-07-20
Company: BMW Financial Services NA, LLC
State: MA
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
I leased my XXXX consecutive BMW from XXXX XXXX XXXX XXXX on XX/XX/XXXX. It was a XXXX BMW XXXX XXXX XXXX. The vin number was XXXX. It was a XXXX lease with a monthly payment including sales tax of {$590.00}. 

Due to COVID, BMW extended lease terms to XXXX months. BMW was also one of the many automotive manufacturers that were not accepting lease returns unless I was leasing another BMW.

The total amount of the XXXX monthly payments per the Lease Agreement signed on XX/XX/XXXX was {$21000.00}. Payment XXXX XXXX was made at the lease signing on XX/XX/XXXX. With the extended lease term to XXXX months, the total amount of payments made by the lessee was {$22000.00}. 100 % of lease payments were paid in full, any fees, excise tax, etc were also paid in full and the final statement sent by BMW indicated a {$0.00} balance to support the statement above. 

I attempted to return the vehicle no fewer than XXXX times to XXXX XXXX ; the dealer refused the lease return without signing a new lease. I was denied financing due to issues with my credit report. The XXXX  XXXX at XXXX told me not to return my car because she would work it out with BMW FS. After many attempts to contact XXXX XXXXXXXX, to determine lease status, XXXX was informed she no longer worked there. I did not know what to do. 

I contacted BMW FS and let them know of this issue and I received XXXX guidance. The leased vehicle was repossessed on XX/XX/XXXX, from my private driveway. The car was sold at auction in XXXX, but I had no idea when, where, or what my options were because this had never happened to me before. The car was sold at auction for {$20000.00} well below market per XXXX ( avg market price for that vehicle was {$25000.00} ). 

The residual value of the vehicle was {$32000.00}. The value of the car at lease inception was {$47000.00}. 

BMW received cash from me of {$22000.00} ( lease payments ) + {$20000.00} ( Auction cash ) for a total of {$43000.00} ( XXXX ) cash in hand for BMW FS. The car was valued at {$47000.00} in ( XXXX ). Had I been able to return the vehicle I wouldn't have owed even {$1.00} to BMW. 

The XXXX XXXX BMW are the XXXX fastest depreciating vehicle on the road today. The residual value was {$32000.00}.

BMW claimed I had a remaining balance of {$34000.00} which is impossible considering I paid {$22000.00} which was the agreed-upon lease payment total. 

BMW is reporting a negative tradeline to all credit bureaus indicating a Charge Off of {$15000.00}. It is reported as a loan amount remaining but I can't understand what reason. If I were in theory to pay this amount, BMW would receive {$58000.00} in cash for a car worth {$47000.00} brand new in XXXX. 

This does not seem fair or right that BMW took possession of the vehicle, was paid all agreed-upon lease payments, sold the vehicle at auction below market but still for ~ {$21000.00}, and still expect an additional $ XXXX for what I am unclear. 

I leased from BMW FS XXXX XXXX XXXX XXXX XXXX XXXX, and a XXXX XXXX for a total of XXXX consecutive years of loyalty to BMW without incident prior to the COVID pandemic. 

I have contacted BMW many times prior to writing this letter. I filed a complaint that was accepted by the XXXX in Massachusetts. I would like the negative tradeline to be removed from all XXXX credit bureaus and have my credit report correctly reflect the lease paid in full as agreed. 

The last time I contacted BMW I was told they could reduce the amount to {$2500.00} which is a far cry from the {$36000.00} BMW originally stated I owed them, reduced to $ XXXX. I told BMW I was not paying any additional amount as I fulfilled my obligation. I have proof which I will upload that all payments were made. The amount BMW received at auction and the reduction to {$2500.00}. I was told that even if I had paid the {$2500.00} it would still be reported as a negative tradeline. Why wasn't the amount reported changed from $ XXXX to {$2500.00}? Please help as this is destroying my credit report. 

I also have proof I attempted to return and lease a new vehicle from BMW during COVID.

Company response to consumer: Closed with explanation