Consumer complaint received 2024-03-12
Product: Vehicle loan or lease — Lease
Issue: Repossession — Lender trying to repossess or disable the vehicle
Company: AMERICAN HONDA FINANCE CORP (NY)

My car ( VIN : XXXX ) was recently repossessed by Honda Financial Services for nonpayment of my lease despite the fact that my lease was fully paid with no amount past due at the time of the repossession. I seek to have this issue rectified immediately. The events leading up to this incident are as follows : On XX/XX/2024, I contacted American Honda Finance Corporation ( AKA Honda Financial Services ) to inquire about the possibility of extanding my lease, which was to expire in mid XXXX. The rep informed me that my account was behind since I had failed to make payments for the previous two months. I then realized that the bank account from which I had been making automated payments every month had been closed and I needed to update my payment details to my new account. 

The agent informed me that in order to bring the account current and avoid repossession, I would need to do a XXXX cash payment using the XXXX option ( a real-time payment, not a money order ) and provide XXXX with my account number when making the payment. He said that any payment made by this method would reflect in my account within XXXX minutes. He said I would then be able to extend my lease. ( Note that I have a recording of this call and can provide a copy if necessary. ) I made the payment as instructed. Attached is the XXXX receipt. 

A few days later my car was taken away. 

I called customer service to inquire about what happened. The agent seemed to be surprised that my car was repossessed after my account was brought current and put me on a long hold. He then came back and explained to me that since I had not called back to inform them that the payment was made, the company responsible for handling repossession was not notified and proceeded with repossession. He also said that since the repossession had already happened, they would not give my car back and would instead send back the payment! 

It should be noted that when making a XXXX XXXX payment, the XXXX system connects to the vendor electronically to verify that the account number provided is eligible to make payments, and only then will the payment be processed. In my case : My account was active and eligible to make payments Honda Finance Corporation accepted the payment The account was brought current A few days later, Honda Finance Corporation took away a car with a lease that is fully current They are trying to blame me for their poor bookkeeping process and retroactively mark the account as being in default. Section XXXX of the lease agreement states in part that, Upon default and repossession I may have the right to get the Vehicle back and reinstate the Lease during the 15 day period after Lessor gives notice of repossession if I tender performance of any reached promise under the Lease and pay to Lessor the amount due under the Lease at the time of repossession and, if Lessor gave me notice of Lessors intent to repossess at least 10 days prior to repossession, pay the actual and reasonable costs of retaking and storing the vehicle In this case, Honda Financial Services never issued a written notice of intent to repossess ; they only informed me of the possibility of repossession during our phone call on XX/XX/XXXX, and I paid the full outstanding amount as instructed on XX/XX/XXXX, well within the XXXX window specified in the lease agreement and before repossession actually took place, meaning that I should be able to recover the vehicle. 

Additionally, New York XXXX XXXX XXXX does not give the right to a secured party to repossess collateral absent a default. XXXX XXXX does not define " default. '' Even if the account were in default of payment, XXXX waived the right to repossess the vehicle by instructing me to pay the outstanding sum by XXXX 's XXXX payment option.