Consumer complaint received 2024-06-26
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Credit denial
Company: AMERICAN HONDA FINANCE CORP (VA)

XX/XX/XXXX : - Pre-Approval Application Completed - Verbally advised approval by local Honda Authorized Dealership - Verbally denied due to recall - Texts from sales person stating recall is the issue - Sales Rep in constant contact with Honda Financial to review this issue XX/XX/XXXX - verbally advised by XXXX XXXX XXXX is not taking any corrective measures XX/XX/XXXX - CFPB complaint being filed ( this form ) XX/XX/XXXX - Letter to Honda Financial/Legislatures of this issue - systemic issue with vehicle loans for many consumers - Honda Vehicle Defective - Recall can't be Resolved - Honda Financial won't issue loan because - Honda Service won't certify vehicle with outstanding recall. 
- Honda won't replace part to fix if not broken Letter to Honda : Honda Financial Services XXXX XXXX XXXX XXXX XXXX, PA XXXX I love my Honda so much that I purchased this vehicle after leasing it. However, I am very disappointed in Hondas Financial Services. I have applied for the promotional interest rate and have been denied an outstanding recall, which prevents my vehicle from being certified. 

Before I get into the recall information, let me be clear : - I have excellent credit. I qualified, and there are no issues with that. 
- My vehicle is maintained well ; my husband is a XXXX XXXX for another CMA Brand, and I still buy Honda vehicles. 

Issue : Honda Financial will NOT approve a loan without an outstanding recall. 
- Open Recall See below - My vehicle is experiencing NO issues ; the XXXX is not impacted - I offered to have it replaced/fixed Honda doesnt allow this XXXX I carry full insurance and am required to when the vehicle is financed. 
- I have a history of maintaining the vehicle ; I don't believe that its my fault its not broken. 
- My vehicle is appropriate collateral for this car loan ECOA VIOLATION Honda Financial has violated the VA XXXX in XXXX XXXX, Truth in Lending Act, and Equal Credit Opportunity Act. I am being denied a loan for no reasonable reason or plainly stated : XXXX is denying creditworthiness based on collateral they deem doesnt qualify, but there is NO remedy to qualify, and the only entity to qualify is the affiliate corporation of the lending institute .

It is my understanding that this recall could be reclassified. If there is no issue, certification should be considered, or financing should be approved if the vehicle is in good working order. 

I am clearly being prejudiced against for having a working vehicle. I expect reconsideration of the loan qualification. 



XXXX XXXX https : XXXX XXXX In XX/XX/XXXX, XXXX recalled XXXX XXXX vehicles due to a defect that could cause the front passenger airbag to deploy unintentionally during a crash. The recall affects XXXX and XXXX models from XXXX to XXXX, including the Civic, Accord, CR-V, Fit, HR-V, Insight, Odyssey, Pilot, Passport, and Ridgeline. XXXX models affected include the XXXX, RDX, and TLX. 
The issue is caused by a capacitor in the front passenger seat weight sensor 's printed circuit board that can crack and short circuit when exposed to humidity. This can prevent the sensor from suppressing the airbag as intended, increasing the risk of injury. 
Honda and XXXX dealerships can make repairs for free and provide a free loaner or rental vehicle if needed. You can check if your vehicle is affected by entering its XXXX VIN on the XXXX XXXX XXXX XXXX 

ECOA Equal Credit Opportunity Act The Equal Credit Opportunity Act ( ECOA ) prohibits discrimination in any aspect of a credit transaction. It applies to any credit extension, including extensions to small businesses, corporations, partnerships, and trusts.