Consumer complaint received 2026-02-25 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:
I am filing this complaint regarding Kia Finance America 's collection of loan payments on a vehicle where the lender did NOT hold a perfected security interest ( title ) at the time of collection, in violation of standard lending practices and consumer protection laws. Chronology of Events : XXXX. XX/XX/XXXX : I purchased a XXXX Kia XXXX ( VIN : XXXX ) from XXXX XXXX XXXX in XXXX XXXX, XXXX Kia Finance funded the loan immediately. XXXX. XX/XX/XXXX XX/XX/XXXX : During this 111-day period, Kia Finance did NOT possess a certificate of title showing a perfected security interest in the vehicle. Despite having no legal right to the collateral, Kia Finance accepted and processed monthly loan payments from me. XXXX. XX/XX/XXXX XX/XX/XXXX : Due to the dealer 's failure to provide title ( later confirmed by Kia 's own investigation ), I was unable to register the vehicle. My temporary tags expired, leaving me without a legally operable vehicle for over three months. XXXX. XX/XX/XXXX : I formally notified Kia Finance America of the fraud, the title failure, unauthorized add on packages to my loan, and demanded rescission of the void contract. They were placed on notice that they were collecting on an unperfected loan. XXXX. XX/XX/XXXX : Kia Finance admitted via email ( Case # XXXX ) that they had finally received the title111 days after the sale. They acknowledged their investigation confirmed the title was missing. XXXX. XX/XX/XXXX XXXX : Despite having no perfected interest for 111 days, and despite my formal dispute and rescission demand, Kia Finance has continued collection activity and refused to refund payments made during the period they had no legal right to collect. Why This Violates the Law : Unperfected Security Interest : Kia Finance had no perfected security interest in the vehicle from XX/XX/XXXX, until XX/XX/XXXX. During those 111 days, they were collecting payments on a loan for which they held no valid collateral. Unjust Enrichment : Kia Finance benefited from monthly payments during a period when they could not legally perfect their interest or enforce their lien. XXXX XXXX : After being notified of the title failure ( XX/XX/XXXX ), they continued collection activity before securing the title, and then resumed aggressive collection after XX/XX/XXXX without addressing the months of improper collections. FCRA/FDCPA Implications : Kia has reported this account to credit bureaus and initiated collection calls while knowing the underlying contract is disputed and void, and while lacking a perfected interest for the majority of the loan 's history. 5. HARM As a direct result of Kia Finance 's actions : Financial Loss : I made a monthly payment to Kia Finance America during a period when they had no perfected security interest ( XXXX, XXXX, and part of XXXX ). These payments should not have been collected until the loan was perfected. Loss of Use : For 111 days, I was unable to legally operate or register the vehicle due to the title failurea failure Kia Finance was aware of but failed to remedy until XX/XX/XXXX. Emotional Distress : Months of uncertainty, collection calls, and the inability to register my vehicle have caused significant stress and hardship.

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