Consumer complaint received 2026-03-10 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: HYUNDAI CAPITAL AMERICA
State: TX

Complaint narrative:
Complaint ID ( Previous ) : XXXX Complainant : XXXX XXXX Company : Kia Finance America ( Hyundai Capital America ) XXXX : XXXX ATTESTATION : I have previously filed a complaint regarding this matter, which was closed by Kia Finance without adequate resolution. I am requesting the CFPB to re-open this case based on new evidence and a clear delineation of federal and state violations. COMPLAINT DETAILS : This complaint involves Kia Finance America 's ( KFA ) practice of collecting payments on a loan for which it held no perfected security interest for a period of 111 days. Despite having no legal right to the collateral and the vehicle being unregisterable, KFA processed payments and failed to assist with state titling requirements, causing significant financial and personal harm. I. FACTUAL CHRONOLOGY & KEY ADMISSIONS XX/XX/XXXX : I purchased a XXXXXXXX XXXX XXXX Kia Finance funded the loan but did not receive the title. XX/XX/XXXX XX/XX/XXXX ( 111 Days ) : KFA accepted and processed monthly loan payments. During this entire period, KFA held an unperfected security interest. They had no legal right to the collateral. XX/XX/XXXX XX/XX/XXXX : Due to the lack of title ( which KFA was aware of ), I was unable to register the vehicle in Texas. Under Texas law ( TxDMV ), a dealer is responsible for processing title within 30 days. Because KFA did not have the title, they could not facilitate this, leaving the vehicle unregisterable and undrivable. XX/XX/XXXX : I formally notified KFA of the fraud and demanded rescission, putting them on notice that the debt was disputed. XX/XX/XXXX : KFA finally received the title. XX/XX/XXXX : KFA resumed aggressive collection calls, despite being fully aware that they had collected payments during a 111-day period of non-compliance. Key Employee Admission : During a phone call, KFA employee XXXX, from the XXXXXXXX XXXX location, admitted : 1. That KFA was aware they were collecting payments without the title. 2. That the vehicle was unregisterable and undrivable due to the title failure. 3. That it was within my right to pursue legal recourse against KFA for these violations. II. LEGAL VIOLATIONS A. Collection on an Unperfected Loan ( UCC Article 9 / Bad Faith ) KFA accepted payments for 111 days while holding no perfected security interest. This means they were collecting on a debt for which they had no claim to the collateral. By resuming collection the day after finally obtaining the title ( XX/XX/XXXX ), they implicitly admitted that prior collections were irregular. This constitutes bad faith and unjust enrichment. B. Violation of the Fair Credit Reporting Act ( FCRA ) - 15 U.S.C. 1681s-2 Under the FCRA, a " furnisher '' of information ( KFA ) has a duty to provide accurate information to credit reporting agencies. KFA furnished payment history during the 111-day period while the loan was unperfected. I formally disputed the debt on XX/XX/XXXX. Under 15 U.S.C. 1681s-2 ( b ), upon receiving notice of a dispute, KFA was required to conduct a proper investigation and review all relevant evidence. KFA failed to conduct a reasonable investigation. They merely confirmed they eventually received the title, ignoring the fact that the past collections were invalid. They continue to report the account without noting it as disputed, violating their duty under the FCRA. C. Inability to Assist with Texas DMV Titling ( Dealer Responsibility ) As confirmed by the Texas DMV, a dealer is responsible for processing title and registration within 30 days. KFA, as the assignee of the contract, stood in the shoes of the dealer. Their failure to possess the title for 111 days directly prevented the Texas DMV process from moving forward, rendering the vehicle " undrivable '' as admitted by your own employee, XXXX. D. Violation of the FTC Holder Rule ( 16 C.F.R. Part 433 ) KFA is the holder of this consumer credit contract. The Holder Rule makes them subject to all claims and defenses I have against the dealer ( fraud, forgery, failure to title ). By ignoring my rescission demand and refusing to address the fraudulent nature of the underlying sale, KFA is violating the express terms of the contract they sought to enforce.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation