Consumer complaint received 2026-01-07 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Repossession — Account reinstatement or redemption after repossession
Company: AMERICAN HONDA FINANCE CORP
State: CA

Complaint narrative:
To Whom It May Concern, This letter serves as a formal Notice of Error and dispute regarding the servicing, delinquency determination, and charge-off of my Honda XXXX XXXX auto loan account. 

Unauthorized Bank Account and Reversed Payments In XX/XX/XXXX, a Honda XXXX XXXX employee added a bank account to my loan profile without my authorization. This bank account does not belong to me. Honda processed XXXX payments using this unauthorized account. 
In XX/XX/XXXX, Honda XXXX XXXX reversed those XXXX payments and then claimed I was XXXX months delinquent, assessed late fees, and relied on those reversals to support a charge-off. These delinquencies were created entirely by Hondas own servicing error. I did not authorize this bank account, and I did not fail or refuse to make payments. 

Bank Fraud and Payment Attempts Separately, in XX/XX/XXXX, my XXXX bank account was closed due to confirmed fraud activity. XXXX advised that my remaining funds would be released within XXXX business days ; however, the funds were not released until more than XXXX days later. During this time, I opened a new account with XXXX XXXX XXXX. 
When a payment attempt failed due to insufficient funds caused by XXXX delayed release, I immediately corrected the issue and submitted payment again. On XX/XX/XXXX, once the remaining funds were finally deposited, I made a {$720.00} payment the same day. That payment was returned, and I again paid immediately upon noticing the issue. 

Improper Charge-Off Despite my prompt payment efforts and despite the unauthorized bank account error, Honda XXXX XXXX issued a charge-off letter dated XX/XX/XXXX, demanding payment in full. 

I contacted Honda Recovery XXXX and explained both the fraud-related bank closure and the unauthorized bank account added by Honda. A Honda representative requested my bank statements, which I submitted on XX/XX/XXXX. On XX/XX/XXXX, XXXX confirmed receipt of my bank statements but stated that Honda would not review or reinstate my account unless I paid {$2500.00} by XX/XX/XXXX. 
Conditioning the investigation or correction of a lenders own servicing error on a lump-sum payment is improper. 

Formal Dispute I formally dispute : The unauthorized addition and use of a bank account in XX/XX/XXXX The reversal of payments in XX/XX/XXXX Late fees and delinquency assessed as a result of those reversals The determination that I was XXXX months delinquent The charge-off issued on XX/XX/XXXX Any related credit reporting resulting from these errors Requested Resolution I request that Honda XXXX XXXX XXXX Conduct a full investigation into these servicing errors Remove the charge-off Remove all late payments and fees caused by the unauthorized bank account and payment reversals Correct any inaccurate credit reporting associated with this account Provide written confirmation of the investigation and resolution This notice is submitted in good faith. If these errors are not corrected promptly, I am prepared to pursue all available remedies, including regulatory escalation. 
Please provide your response in writing. 
Sincerely,

Company response to consumer: Closed with explanation