Consumer complaint received 2026-05-21 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Notice to repossess
Company: AMERICAN HONDA FINANCE CORP
State: IL

Complaint narrative:
CONSUMER FINANCIAL PROTECTION BUREAU FORMAL CONSUMER COMPLAINT Submit online at : consumerfinance.gov/complaint Or mail to : CFPB, XXXX XXXX XXXX, XXXX XXXX XXXXXXXX COMPLAINANT INFORMATION Full Name : XXXX XXXX XXXX Co-Complainant : XXXX XXXX XXXX Address : XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX Phone : ( XXXX ) XXXX Email : XXXX Co-Complainant Address : XXXX XXXX XXXX XXXX XXXX, Illinois XXXX Co-Complainant Phone : ( XXXX ) XXXX Co-Complainant Email : XXXX Race/National Origin : XXXX American both Complainants COMPANY COMPLAINED AGAINST Company Name : American Honda Finance XXXX XXXX XXXX XXXX XXXX Account Number : XXXX Vehicle XXXX XXXX XXXX XXXX, XXXX XXXX Company Address : XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX Registered Agent : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX IL XXXX IL Secretary of State File No . : XXXX Active since XX/XX/XXXX XXXX Counsel in Related Litigation : Attorney XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX, ( XXXX ) XXXX RELATED ACTIVE CIVIL LITIGATION Case : XXXX & XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX Case Number : XXXX Court : Circuit Court of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX Illinois Judge : XXXX XXXX XXXX XXXX XXXX Next Hearing : XX/XX/XXXX at XXXX XXXX Status : First Amended Verified Complaint filed and accepted XX/XX/XXXX NATURE OF COMPLAINT This complaint is filed by XXXX XXXX XXXX and XXXX XXXX XXXX, XXXX American consumers, against American Honda Finance XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) for violations of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2, the Equal Credit Opportunity Act ( ECOA ), 15 U.S.C. 1691, the Consumer Financial Protection Act ( CFPA ), and related consumer protection statutes. These violations arise from XXXX XXXX wrongful repossession of Complainants ' vehicle and subsequent adverse credit reporting conducted while XXXX was operating under the XX/XX/XXXX CFPB Consent Order ( File No. XXXX ) and while subject to the XXXX XXXX Joint Consent Order ( CFPB Administrative Proceeding No. XXXX ) requiring AHF to eliminate discriminatory auto loan pricing practices targeting XXXX American borrowers. I. XXXXXXXX XXXX PRIOR FEDERAL ENFORCEMENT HISTORY ACTIVE AT TIME OF VIOLATIONS XXXX XXXX XXXX XXXX ECOA Violation ( CFPB No. XXXX ) : On XX/XX/XXXX, the CFPB and DOJ resolved an action finding that XXXX violated the Equal Credit Opportunity Act by charging XXXX American, XXXX, and XXXX and XXXX XXXX borrowers higher interest rates than white borrowers with identical credit profiles. XXXX American borrowers were charged an average of XXXX basis points more resulting in paying over {$250.00} more over the life of their loans. XXXX paid {$24.00} XXXX in restitution and was required to cap dealer markups at 1.0 % above the buy rate for loans exceeding 60 months. XXXX CFPB Consent Order FCRA Violation ( File No. XXXX ) : On XX/XX/XXXX, the CFPB issued a Consent Order against XXXX finding violations of FCRA, Regulation V, and the CFPA, requiring XXXX to pay {$12.00} XXXX in penalties and redress and to come into compliance with federal consumer reporting law. XXXX was actively subject to and bound by this Consent Order on XX/XX/XXXX the date the violations described in this complaint occurred. These two successive federal enforcement actions spanning discriminatory pricing targeting XXXX American borrowers and systemic credit reporting failures establish XXXX as a repeat violator of federal consumer protection law. The conduct described in this complaint occurred while XXXX was under active federal supervision pursuant to both orders. II. ECOA VIOLATION DISCRIMINATORY LOAN PRICING Complainants are XXXX American consumers who financed the purchase of a XXXX XXXX XXXX on XX/XX/XXXX through XXXX at an Annual Percentage Rate of 7.69 % on an 84-month loan term. The XXXX CFPB/DOJ Consent Order required XXXX to cap dealer markups at 1.0 % above XXXXXXXX XXXX risk-based buy rate for loans exceeding 60 months. Complainants ' loan term of 84 months falls within this requirement. Complainants request that the CFPB investigate whether XXXXXXXX XXXX buy rate for Complainants ' credit profile as of XX/XX/XXXX complied with the 1.0 % cap required by the XXXX Consent Order, or whether Complainants as XXXX American borrowers were charged a discriminatory markup in violation of the ECOA and the terms of the XXXX Consent Order still in effect at the time of their loan origination. III. THE WRONGFUL REPOSSESSION XX/XX/XXXX On XX/XX/XXXX, XXXX directed the repossession of Complainants ' XXXX XXXX XXXX, XXXX XXXX ( Account No. XXXX ), from XXXX XXXX XXXX XXXX, XXXX, XXXX, through its third-party repossession coordinator XXXX XXXX of XXXX, Illinois, and executing agent XXXX XXXX XXXX and XXXX XXXX ( `` XXXX '' ), XXXX XXXX XXXX License No. XXXX, XXXX, Illinois. The repossession was unlawful for the following documented reasons : 1. No Notice of Right to Cure was provided to Complainants prior to repossession, in violation of 815 ILCS 375/20. XXXX 's own agent XXXX XXXX and Office Manager XXXX XXXX both independently confirmed to Complainant XXXX XXXX XXXX in person on XX/XX/XXXX that Illinois law requires 21 days for a debtor to arrange payment before repossession. No such notice was ever provided. XXXX. XXXX refused Complainant 's tender of the full past-due balance on XX/XX/XXXX the same day it ordered the repossession and also refused a payment tender on XX/XX/XXXX. XXXX 's own XX/XX/XXXX Written Explanation of Amount Owed confirms the refusal of these tenders. XXXX can not manufacture a default by refusing payment and then report adverse information based on that manufactured default. 3. The repossession was executed while XXXX XXXX occupied the passenger seat of the vehicle, constituting a breach of peace under XXXX XXXX XXXX. XXXX 's agent XXXX XXXX demanded Complainant surrender keys for a charge of {$450.00} while the vehicle was occupied and being lifted a charge XXXX subsequently ratified by including it in its XX/XX/XXXX Written Explanation of Amount Owed as an 'Other Expense : Keys. ' 4. XXXX 's agent XXXX XXXX entered fictitious Badge No. XXXX in both mandatory officer notification fields of XXXX XXXX XXXX Ticket No. XXXX. XXXX XXXX Police Department dispatch employees independently confirmed Badge XXXX is not assigned to any active XXXX officer. FOIA Request No. XXXX produced an Officer Active Roster confirming this. The required pre- and post-repossession law enforcement notifications were therefore never validly made. 5. The XXXX XXXX Private Tow Log entry was created on XX/XX/XXXX two days after the repossession by Officer XXXX, Badge XXXX, who was not present on XX/XX/XXXX, lists the wrong address ( XXXX XXXX XXXX instead of XXXX XXXX XXXX ), and records a time of XXXX XXXX contradicted by Complainants ' Ring doorbell camera timestamp of XXXXXXXX XXXX. XXXX has relied upon this erroneous document in settlement correspondence. 6. The repossession order was placed on XX/XX/XXXX three days after Complainant filed XXXX requests with the XXXX Police Department regarding XXXX misconduct involving Complainant 's son 's civil rights matter. This timing supports a retaliatory motive. 7. XXXX XXXX stated to Complainant in person that his License Plate Recognition ( LPR ) scanner identified the vehicle on XXXX XXXX XXXX and that he received a real-time repossession order from XXXX through XXXX Track to proceed. This means no pre-notification to law enforcement was possible before the lift commenced rendering the XXXX ticket 's officer notification entries physically impossible as well as fictitious. IV. FCRA VIOLATIONS Following the wrongful repossession, XXXX furnished or caused to be furnished adverse credit reporting information to one or more consumer reporting agencies regarding Account No. XXXX. This adverse reporting was furnished based on a repossession that was itself unlawful, after XXXX refused Complainants ' own payment tenders, while XXXX was operating under the XX/XX/XXXX CFPB Consent Order requiring FCRA compliance, and without conducting reasonable investigations of Complainants ' disputes. XXXXXXXX XXXX conduct violates 15 U.S.C. 1681s-2 ( a ) by furnishing information XXXX knew or had reasonable cause to believe was inaccurate, and 15 U.S.C. 1681s-2 ( b ) by failing to conduct a reasonable investigation of Complainants ' disputes. Given the existence of the XX/XX/XXXX Consent Order, XXXX XXXX violations are willful within the meaning of 15 U.S.C. 1681n making punitive damages available to both Complainants. The XX/XX/XXXX Consent Order found that XXXX XXXX FCRA violations affected the credit reports of XXXX people. Complainants are not among the XXXX consumers identified in the XX/XX/XXXX CFPB Consent Order their violations occurred in XX/XX/XXXX, after the Consent Order was issued, demonstrating XXXX continued non-compliance with the same statutes the Consent Order was designed to remedy. V. CHOICE OF LAW AHF 'S SYSTEMATIC APPLICATION OF MISSOURI TEMPLATES TO ILLINOIS RESIDENTS XXXX has argued through litigation counsel that Missouri law governs this transaction because the retail installment contract was executed in Missouri. This position is contradicted by XXXXXXXX XXXX own conduct and admissions : ( a ) XXXX has been an active Illinois corporation since XX/XX/XXXX, IL Secretary of State File No. XXXX ; ( b ) XXXX 's own Recovery Department confirmed Illinois law governs ; ( c ) XXXX 's own repossession agent XXXX XXXX stated in person that Illinois law governs because the vehicle is located in Illinois ; ( d ) XXXX directed the repossession through an XXXXXXXX XXXX XXXX XXXX repossession agency ; ( XXXX ) XXXX applied Missouri notice template XXXX XXXX XXXXXX/XX/XXXX to known Illinois residents at a XXXX, Illinois address the same type of inadequate notice practice found by the CFPB in its XX/XX/XXXX enforcement action ; and ( f ) XXXX XXXX and XXXX establish that the debtor 's location Illinois controls the applicable law. The systematic application of Missouri templates to Illinois XXXX American consumers to evade Illinois consumer protection requirements including the mandatory Notice of Right to Cure under 815 ILCS 375/20 constitutes an unfair, deceptive, or abusive act or practice under the CFPA and supports a pattern finding under the ECOA. VI. XXXXXXXX XXXX SETTLEMENT OFFERS BOTH DECLINED XXXX, through counsel, made two settlement offers : {$3600.00} on XX/XX/XXXX, and {$3600.00} on XX/XX/XXXX, each conditioned on full dismissal with prejudice and release of all claims against all defendants including XXXX. Both were declined. XXXX 's counsel stated he 'respectfully disagrees that Plaintiffs have any recoverable damages ' a position directly contradicted by the mandatory statutory damages floor of {$23000.00} under 810 ILCS 5/9-625 ( c ) ( 2 ) alone, calculated from the face of the retail installment contract. XXXX has voluntarily stayed the Vehicle 's auction and indicated willingness to reinstate the contract an implicit acknowledgment of the unlawful nature of the repossession. Storage fees continue to accrue daily at XXXX 's facility. VII. RELIEF REQUESTED FROM THE CFPB Complainants respectfully request that the CFPB : 1. Investigate XXXX 's compliance with CFPB Consent Order File No. XXXX in connection with the XX/XX/XXXX repossession and subsequent adverse credit reporting on Account No. XXXX ; 2. Investigate whether XXXX 's 7.69 % APR on Complainants ' 84-month loan originated XX/XX/XXXX complied with the 1.0 % dealer markup cap required by CFPB Administrative Proceeding No. XXXX for XXXX American borrowers ; 3. Investigate XXXX 's systematic application of Missouri-jurisdiction notice templates to Illinois residents as a potential UDAAP and ECOA violation targeting XXXX American consumers ; 4. Investigate XXXX 's refusal of Complainants ' payment tenders on XX/XX/XXXX and XX/XX/XXXX as a potential unfair practice under the CFPA ; 5. Investigate XXXX XXXX 's role as XXXX 's repossession coordinator including its real-time direction of the XX/XX/XXXX repossession and its deflection of Complainants ' breach of peace complaint ; 6. Direct XXXX to immediately correct and retract all adverse credit reporting related to Account No. XXXX for both Complainants ; 7. Direct XXXX to reinstate Account No. XXXX on terms that do not penalize Complainants for the unlawful repossession ; and 8. Take such additional enforcement action as the CFPB deems appropriate given XXXX 's continued violations of the same statutes addressed in both the XXXX and XXXX Consent Orders, directed against XXXX American consumers. VIII. SUPPORTING DOCUMENTATION AVAILABLE The following evidence is preserved and available to the CFPB upon request : Ring doorbell camera footage XX/XX/XXXX XXXX XXXX tow truck on scene at XXXX XXXX XXXX XXXX XXXX Collateral Recovery Ticket No. XXXX fictitious Badge XXXX in both notification fields XXXX XXXX XXXX XXXX Log false address of XXXX XXXX XXXX XXXX, created XX/XX/XXXX, wrong time, updated by XXXX XXXX No. XXXX Officer Active XXXX confirming Badge XXXX not assigned to any active officer XXXX Written Explanation of Amount Owed XX/XX/XXXX including {$450.00} key charge ratification XXXX payment refusal records XX/XX/XXXX and XX/XX/XXXX XXXX settlement correspondence XX/XX/XXXX and XX/XX/XXXX Illinois Secretary of State record XXXX File No. XXXX, active since XX/XX/XXXX Retail Installment Sale Contract executed XX/XX/XXXX XXXX 7.69 %, 84 months, {$57000.00} financed First Amended Verified Civil Complaint Case No. XXXX accepted XX/XX/XXXX Sworn Declaration of XXXX XXXX XXXX XXXX XXXX and XXXX XXXX admissions notarized Notarized statement of XXXX XXXX occupied vehicle witness Notarized statement of XXXX XXXX. XXXX on-scene witness Photographs of XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. VERIFICATION I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief, and that I am filing this complaint in good faith based on documented evidence preserved in connection with active civil litigation. _________________________________ Date : XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX

Company response to consumer: Closed with explanation