Consumer complaint received 2026-06-15 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Billing problem
Company: HYUNDAI CAPITAL AMERICA
State: IL

Complaint narrative:
This complaint concerns Hyundai Capital America / Kia Finance America 's continued billing, collection, and credit-reporting practices on my disputed vehicle lease account. XXXX does business as Kia Finance America and has confirmed in writing on company letterhead that it is : ( 1 ) attorney-in-fact for Hyundai Lease Titling Trust ; ( 2 ) the initial and current beneficiary of HLTT ; ( 3 ) the exclusive servicer of HCA-managed consumer lease accounts ; and ( 4 ) the beneficial owner of my vehicle and lease. On XX/XX/XXXX, my retained litigation counsel served Hyundai Lease Titling Trust and Hyundai Capital America / Kia Finance America with a formal written lease-account dispute and revocation notice. The notice demanded cancellation of the lease, return of all amounts paid, and written confirmation that no adverse credit information would be reported. XXXX assigned XXXX XXXX. XXXX to this dispute. The response deadline was XX/XX/XXXX. On XX/XX/XXXX XXXX day after the deadline XXXX XXXX, XXXX 's Dispute Resolution Manager, responded on company letterhead. Despite confirming XXXX 's complete control over this consumer lease account, XXXX 's letter did not acknowledge the account dispute or revocation notice, did not engage with its legal basis, did not provide any credit-reporting commitment, and did not provide written confirmation that the account had been coded, treated, or reported as disputed. XXXX characterized my formal dispute as " mechanical issues '' and recommended I contact the selling dealer which no longer operates at that address or the manufacturer, which directed me to a manufacturer-administered arbitration program that does not address disputed lease-account servicing. Despite the XX/XX/XXXX dispute notice, XXXX through Kia Finance America has continued to administer my account as an active lease, continued issuing monthly billing statements, and continued accepting my monthly payments of {$740.00} without any acknowledgment of the dispute, any written confirmation of dispute coding, or any written commitment regarding credit reporting. I have continued making these payments under written protest because Kia Finance America controls the credit reporting for this account. If I stop payments while XXXX refuses to acknowledge or code the account as disputed, I risk adverse credit reporting on a lease account that I have formally disputed and sought to cancel. As a result, I continue paying {$740.00} per month for a vehicle I can not use while XXXX continues to collect payments without providing a written account-level response. The account dispute arises from a documented pre-delivery defect. I leased a new XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX for {$740.00} per month from a licensed Illinois dealership XXXX The next morning the vehicle displayed a Battery Management System fault. On XX/XX/XXXX, an authorized Kia service center confirmed via ECU freeze-frame data that fault code XXXX first triggered at 13 miles on the odometer eight miles before the vehicle was delivered to me at 21 miles. The vehicle 's high-voltage battery pack was physically removed per the manufacturer 's engineering directive. A replacement component was placed on national backorder with no estimated time of arrival. The vehicle has been continuously out of service at an authorized Kia service facility since XX/XX/XXXX 86 days as of the filing date of this complaint. XXXX accepted each protest payment without returning it, without providing written credit-reporting protection, without confirming that the account is being coded or treated as disputed, and without substantively responding to the dispute notice that accompanied each protest payment letter. Bank-confirmed payment record : XX/XX/XXXX : {$740.00} at signing. XX/XX/XXXX : {$740.00} under written protest XXXX XXXX XXXX, cleared as HYUNDAI CAPITAL CHECKPAYMT, posted XX/XX/XXXX three days after formal dispute notice was served. XX/XX/XXXX : {$740.00} under written protest XXXX XXXX XXXX, cleared as HYUNDAI CAPITAL CHECKPAYMT, posted XX/XX/XXXX. XX/XX/XXXX : {$740.00} under written protest remitted with protest letter and payment coupon. Total paid since lease execution : {$2900.00}, including {$2200.00} in protest payments accepted or retained after the XX/XX/XXXX dispute notice. I am particularly concerned about credit reporting because CFPB previously entered a XXXX consent order against Hyundai Capital America involving inaccurate credit reporting on auto loans and leases. I request written confirmation that XXXX / Kia Finance America will code or treat the account as disputed and will not furnish adverse information on this disputed account while the dispute and lease cancellation demand remain unresolved. I am asking Hyundai Capital America / Kia Finance America to : 1. Provide written acknowledgment that this lease account is disputed and that XXXX received the XX/XX/XXXX formal dispute and revocation notice assigned XXXX XXXX. XXXX. 2. Suspend, credit, or hold as disputed all monthly payments of {$740.00} accepted or retained after the XX/XX/XXXX dispute notice, and confirm in writing how XXXX is treating those payments while the account dispute remains unresolved. 3. Provide written confirmation on company letterhead that XXXX / Kia Finance America will code or treat the account as disputed and will not furnish delinquency, default, repossession, or other adverse credit information based on post-dispute nonpayment while the account dispute remains unresolved. 4. Return or credit all protest payments accepted or retained after the XX/XX/XXXX dispute notice, currently totaling {$2200.00}, and any additional payments made while this dispute remains unresolved. 5. Escalate this matter to XXXX 's authorized legal, compliance, or executive-resolution staff for an account-level response addressing the dispute notice. 6. Provide a written explanation of XXXX 's account-servicing basis for continuing to bill, collect, and administer the lease as active after receiving the XX/XX/XXXX written dispute and revocation notice. I am represented by retained Illinois litigation counsel. This complaint is filed to create a formal federal regulatory record of XXXX 's post-dispute collection conduct and to request CFPB facilitation of an appropriate response from XXXX XXXX Kia Finance America.

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