Consumer complaint received 2018-05-10
Product: Vehicle loan or lease — Lease
Issue: Problems at the end of the loan or lease — Termination fees or other problem when ending the lease early
Company: BMW Financial Services NA, LLC (NJ)

I am writing to resolve an accounting/payment issue with BMW Financial Services NA , LLC. 
On XX/XX/XXXX I went to BMW of XXXX NJ as the lease of my XXXX BMW 328 was coming to an end in XX/XX/XXXX. After discussing options with a sales person, I decided to lease a new BMW 330 after the sales person stated the lease for the BMW 328 could be terminated early. Monthly lease payments on the BMW 328 of {$430.00} were made from XX/XX/XXXX through XX/XX/XXXX on time via automatic transfer from my bank. The final payment was made on XX/XX/XXXX for XX/XX/XXXX. 

I received a letter from BMW Financial Services dated XX/XX/XXXX ( Letter 1 attached ) with the final account statement for the lease on the BMW 328 ( old lease ) for my records. The letter stated no further amount was owed  on my motor vehicle lease agreement for the BMW 328. The itemized charges for excess wear and use would reflect the damage present at the final inspection. Remaining payments due were noted to be {$0.00}. 

My first payment for the BMW 330 ( new lease ) was made at the time of signing. I scheduled automatic future payments with my bank to begin XX/XX/XXXX. Unfortunately when the first payment ( amount of {$480.00} ) was made, it went to the account for the old lease that was terminated. I contacted BMW Financial Services to explain the error and was told the BMW of XXXX sales office would have to contact BMW Financial Services which was done. 

I received two letters dated XX/XX/XXXX from BMW Financial Services : one stating that the misapplied payment in the amount of {$480.00} had been removed from the old lease account ( which was terminated with no further balance due per their Letter 2, attached ) ; and one stating the payment was applied appropriately to the new lease ( Letter 3, attached ). 

On XX/XX/XXXX I received a letter from BMW Financial Services ( Letter 4, attached ) stating that a remaining payment in the amount of {$480.00} for the terminated old lease was due. The {$480.00} is the amount paid in XX/XX/XXXX in error to the old lease which had been terminated with no balance due and should have been applied to the new lease and which payment was transferred appropriately per the XX/XX/XXXX letter ( Letter 3 ). Please note {$480.00} is the amount due monthly for the new lease. 

I contacted BMW Financial Services on two occasions in XX/XX/XXXX to explain what had occurred regarding the XX/XX/XXXX payment for the new lease. I was told that since the {$480.00} was transferred from the old lease account to the new lease, the amount transferred was now due on the old lease with no additional explanation despite the fact that the old lease account was paid in full. 

I have been unable to date to obtain information as to why BMW Financial Services has an outstanding balance of {$480.00} ( the monthly payment amount for new lease ) due on the account for the old terminated lease. 

I have received a letter on XX/XX/XXXX from BMW Financial Services ( Letter 5, attached ) threatening to put this account which was terminated with no balance, in collection. I have been notified that the account is now in collection. Despite my repeated efforts to contact BMW Financial Services I have to date been unable to resolve this issue.