Consumer complaint received 2025-11-17 00:00:00
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: MITSUBISHI HC CAPITAL (U.S.A.) INC.
State: OH

Complaint narrative:
One of our leased commercial equipment was involved in a serious accident and declared a total loss. Due to delays and negligence by the insurance adjuster handling the claim, the total-loss payment was not finalized until XX/XX/year>. During this entire period, our equipment lender was aware that a total-loss claim was pending. 

When the insurance company finally issued the payment, the check was made jointly payable to us and the lender. Acting in good faith, we wired the lender the entire principal payoff and some smaller fees out of pocket, with the understanding that the lender would endorse and return the insurance check so we could address the remaining balance separately. 

Instead, the lender refused to release or endorse the check and held it as leverage until we also paid late fees and an insurance administrative charge. While the late fees may be contractually legitimate, even though we could not use the equipment, ( and the lender did offer a 25 % discount ), the insurance administrative charge appears unjustified. The lender claimed we failed to provide updated XXXXXXXX XXXX  coverage on time. However, we promptly notified our insurance agent and were under the reasonable belief that the updated Certificate of Insurance was sent directly to the lender. We were never informed of any actual out-of-pocket insurance cost paid by the lender. 

If they paid less than what they charged us, we requested the difference back ; if they paid nothing, we requested a full refund of the insurance administrative charge. They provided no documentation but still required full payment before releasing the insurance check. 

Under pressure, we wired the late fees and the disputed insurance administrative charge out of pocket. Before sending the wire, we clearly stated that if we wired these funds, we needed the lender to overnight the insurance check and the titles the same day. 

The wire was sent on Thursday around XXXXXXXX XXXX ET. No confirmation was provided for several hours. The next day ( Friday ), we emailed with no response. When we called, a representative stated he was leaving at noon, that the check would not be sent that day, and that we would have to wait until Monday. I explained that this was unacceptable because we had wired funds out of pocket and urgently needed the insurance check returned, but he showed little concern. As of Monday, we still have not received the insurance check. 

The lender has now received all funds they demanded, holds the titles, and continues to withhold the insurance proceeds and delay documentation. Their actionsusing the insurance check as leverage for fees, charging an administrative insurance fee without proof of any corresponding expense, and failing to send the check after paymenthave caused significant financial and operational strain to our business. 

The lender ( different department ) did email me notifying that there's typo on the name of the lender. We advised that since we are depositing the check and out name spelled correctly, it's not a concern.

Company response to consumer: Closed with explanation