Consumer complaint received 2026-04-10 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: AMERICAN HONDA FINANCE CORP
State: VA

Complaint narrative:
I am filing this complaint to demand a refund of approximately {$4300.00} that belongs to me and was applied to my auto loan instead of being returned to me. At the time of purchase, I do not speak XXXX. The sales representative who handled my transaction was XXXX and communicated with me in XXXX. Based on the explanations provided to me in my own language, I relied on those statements and signed the agreements. Before signing the contract, the financial structure and consequences of these products were not clearly, accurately, or fully explained to me. I was explicitly told that in the event of a total loss, the remaining balance after the insurance payment would be covered by XXXX. Based on this representation, I agreed to purchase XXXX coverage and additional products. However, the actual outcome was completely different from what was explained to me. After my vehicle was declared a total loss : The insurance company paid approximately {$30000.00} After that payment, approximately {$4300.00}, generated from the cancellation of products I personally paid for, was applied directly to the loan balance In other words, my own money was used to reduce the loan instead of being refunded to me Despite this, I personally accessed my XXXX XXXX account, saw a remaining balance of approximately {$220.00}, and paid that amount myself This means : The insurance company made a payment My own funds from purchased products were then applied to the loan Despite that, I still had to pay the remaining balance myself Therefore, GAP did not provide any real or meaningful benefit as it was represented to me at the time of sale. Afterwards, I was told that this process was justified based on certain contract provisions. However, these provisions were not clearly explained to me before signing in a language I understand. In particular, I was never clearly informed of the following critical fact : That the refunds from products I paid for would first be applied to the loan balance, and that as a result, GAP might not provide the protection I was led to expect, and I could still be required to pay a remaining balance. Had this been clearly explained to me, I would not have agreed to purchase these products. Because I do not speak XXXX, I had no choice but to rely entirely on what was explained to me in Turkish during the sales process. However, the true financial impact of these products was not properly and transparently disclosed. Additionally, in a written communication sent to me by a dealership representative, it was explicitly stated that the process carried out in my case does not normally happen. This statement clearly indicates that the process applied to my account was not standard and raises serious concerns that the handling of my account may have been improper. This creates a strong concern that the funds were not applied correctly and that my money may have been improperly used to satisfy the loan. In summary : The insurance company made a payment Approximately {$4300.00}, derived from products I purchased, was applied to the loan Despite this, I still paid an additional {$220.00} out of my own pocket GAP did not provide the protection or benefit that was represented to me This situation constitutes misleading sales practices, lack of proper disclosure, and potentially improper handling of funds. I am not requesting an explanation. I am requesting correction.

Company response to consumer: Closed with explanation