Consumer complaint received 2018-06-27
Company: AMERICAN HONDA FINANCE CORP
State: PA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem with paying off the loan

Complaint:
I purchased a new vehicle ( XXXX XXXX XXXX ) on XX/XX/XXXX from XXXX XXXX. At the time, I was offered GAP insurance from XXXX XXXX XXXX XXXX, which was explained to me by the finance manager that the insurance would cover the " gap '' between the value of my car and the loan amount. I purchased the insurance for {$750.00}. During the time of my ownership, I never made a late payment. 

My vehicle was deemed totaled in a car accident on XX/XX/XXXX. I contacted my insurance company, which handled my claim and paid out the amount of the vehicle according to a valuation report. I was left with a balance on the loan in the amount of {$2700.00}. On XX/XX/XXXX, I submitted my claim to the XXXX XXXX company to cover the remaining balance. 

Honda Financial Services mailed me a packet dated XX/XX/XXXX with documentation that was forwarded to the XXXX XXXX and XXXX XXXX on XX/XX/XXXX including the sales agreement and copies of the fax sent to XXXX XXXX to request a refund of my mechanical repair service contract ( XXXX XXXX ), which totaled to {$860.00}. 

I received a call from Honda Financial Services stating that my account was past due and I needed to make a payment. I was confused because I submitted all of my documentation, and everything should have been paid for. I followed up with the XXXX XXXX on XX/XX/XXXX and spoke to XXXX XXXX. There was a lot of pushback they did not receive all of the required documentation and was reluctant to help. It was extremely frustrating to know that my claim was not processed and almost a month has passed. I did not receive a call or notification from them stating that there was missing documentation. I then asked them to re-check and she found some of the information, which upset me more. I re-sent the subrogation letter via email and she confirmed receiving it. I emailed XXXX XXXX ( XXXX XXXX ) and asked him to forward the vehicle invoice, which was the last remaining document to process my claim. I was told on XX/XX/XXXX by XXXX XXXX that my claim would be processed as soon as they received the vehicle invoice. 

I received another call from Honda Financial the first week of XXXX regarding my account. I was extremely frustrated at this point because I made several attempts via phone, email and in person to get the documentation to process my claim. The representative helped me obtain the final document for my Gap claim. I called the XXXX XXXX the same day to advise that my claim should be processed now that they have all of the documentation. 

I received another call the first week of XXXX stating that my account was still in default and payments were not made. I called the XXXX XXXX  on XX/XX/XXXX and spoke to XXXX who told me they were backed up, and the claim was processed 42 days late. I began to cry because at this point my credit is affected and nothing was done. I asked why was the claim amount was only {$460.00} why didn't it cover the balance of the loan amount. XXXX went on to explain that my warranty only covered the difference in the value of the car, not the loan. I was furious because I paid more for the insurance, and that wasn't what I was told at the dealership. He said there was nothing he could do about it. I then proceeded to contact XXXX, the financial manager who handled my initial paperwork, and I was informed " she no longer worked there '' and suggested I speak to XXXX XXXX. 

I called Honda Financial ( bank ) and spoke to XXXX after speaking with the Gap Insurance company and asked how I can escalate this concern because I couldn't afford to pay the remaining balance and I found out the Gap insurance wasn't covering the entire balance. I also asked why my account showed late because according to the calculations, my insurance payment covered by payment due XXXX, and the mechanical repair contract refund should have covered my payment for XXXX. I was told by XXXX that no refund was issued from the dealership and this was why the account was marked late. I attempted to contacted XXXX XXXX again ( XXXX XXXX XXXX ), and he said he remembers processing the paperwork, and he will get back to me. He said if I didn't hear back from him to call the following Tuesday follow up with the accountant. XXXX did not respond and I had no luck getting back in contact with him. 

I received another call from Honda Financial Services in XXXX stating that there was a balance due of {$1400.00} remaining on the account. I ended up seeking legal advice because I felt ripped off. My lawyer recommended me report this to Consumer Finance. At this point, I had to pay the balance with my credit card before I showed late again. Honda Financial would not reverse the late notations on my credit report despite my attempts to resolve the issue and said there was nothing they could do. 

This was a terrible experience for me, and I wouldn't want anyone else to be in this situation. I'm asking for help with my situation.

Company response to consumer: Closed with non-monetary relief