Consumer complaint received 2025-12-15 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: HYUNDAI CAPITAL AMERICA
State: TX

Complaint narrative:
Kia Finance America ( KFA ) is treating a disputed total-loss deficiency as collectible, placing it with a third-party debt collector, and reporting it as a derogatory Charge-Off, instead of providing a substantive accounting and properly administering the XXXX waiver addendum held by KFA as the Holder. The disputed amount being collected/reported is {$6400.00}. 

Key facts : XX/XX/XXXX Texas auto accident ( total loss event ). 

XXXX XX/XX/XXXX XXXX confirmed total loss. 

XX/XX/XXXX XXXX settlement payment {$23000.00} applied to my account. 

Around XX/XX/XXXX account began being reported as serious delinquency/charge-off ( see attached credit report ). 

XX/XX/XXXX Texas Office of Consumer Credit Commissioner ( OCCC ) issued a written response documenting the figures and stating : XXXX coverage is designed to pay the difference between the remaining loan balance and the actual insurance settlement, not simply the XXXX. OCCC further stated : Based on the actual figures, the amount due under your XXXX policy is {$11000.00}. and that the refusal to honor the claim constitutes an unfair and deceptive act. 

XX/XX/XXXX I received a collection letter from XXXX XXXX XXXX XXXX XXXX demanding {$6400.00} and listing the creditor as XXXX XXXX XXXX, creating additional accuracy/servicing concerns. 

XX/XX/XXXX KFA received my formal written dispute/demand ( USPS Certified Mail; signed green card available ). KFA did not provide a substantive written resolution within the requested timeframe.

Why Im complaining : 1 ) Ignoring an active documented dispute while continuing collection placement. KFA received written dispute notice but the account remained in collections and was not resolved in writing. 

2 ) Harmful derogatory credit reporting tied to a disputed balance. KFA continues reporting a Charge-Off/serious delinquency tied to this disputed deficiency. At minimum, the tradeline must be clearly marked disputed during investigation and must not be reported in a misleading manner treating the balance as undisputed. 

3 ) Failure to provide a contractual accounting under the XXXX waiver addendum. The XXXX addendum explicitly contemplates a waiver calculation based on the XXXX XXXX settlement when primary insurance exists. The agreement states, in part : Holder agrees to waive the difference between the Unpaid Net Balance on the Date Of Loss and : ( 1 ) the Primary Carrier settlement ; or ( 2 ) the Actual Cash Value in the absence of primary insurance coverage. 
KFA has not provided a complete written accounting/ledger showing the Unpaid Net Balance as of the Date of Loss, offsets/credits applied, and which charges ( if any ) were excluded/post-loss. 

( I am not asking CFPB to adjudicate an insurance dispute. I am asking CFPB to require KFA to provide a substantive contractual accounting, stop harmful collection/reporting while the dispute is investigated, and then apply the contract correctly or issue a written denial citing the exact addendum provision/exclusion and calculation. ) Consumer harm ( measurable ) : KFAs derogatory reporting and collection placement caused significant harm, including adverse credit actions : XXXX XXXX XXXX reduced my credit line and issued an adverse action notice referencing delinquency/derogatory information, and my TransUnion-based XXXX score is shown as XXXX, with serious delinquency cited among adverse factors.

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