Consumer complaint received 2025-04-10 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Problems at the end of the loan or lease — Termination fees or other problem when ending the lease early
Company: Volvo Car Financial Services U.S., LLC
State: NY

Complaint narrative:
My lease with Volvo Car Financial Services concluded in XX/XX/XXXX with no delinquencies and a fully paid-off balance. In XX/XX/XXXX, I noticed that the lease line remained open on my credit report and reflected a balance due. I immediately sent a written dispute via certified mail. I disputed the charges and advised VCFS of my existing excess wear and tear coverage policy that should cover any excess fees. 
VCFS acknowledged receipt in their first letter on XX/XX/XXXX. VCFS then furthered the dispute via letter in XX/XX/XXXX, stating the charges were related to excess mileage. Understanding the fee, and in good faith, I sent the full {$3000.00} balance on XX/XX/XXXX in order to resolve the matter. On XX/XX/XXXX, after payment of the full balance was sent, VCFS closed the account with a derogatory account status and set payment status to charge-off, with a remark of profit and loss write off. On XX/XX/XXXX, 3 days after the account was paid in full, VCFS nonsensically reported to Experian the account was both showing a payment history : XXXX for XX/XX/XXXX days late Never Late and a Charge-Off of a delinquent debt that is by definition Late. From XX/XX/XXXX to XX/XX/XXXX, no negative tradeline had appeared on my credit report. Further, when I disputed the charges no reports to the credit bureaus were made that the account was in dispute. Then, the very next month, the same month in which I received notice of the origin of the fees and paid them, the account was set to derogatory charge-off status and closed with no notice of my dispute. On XX/XX/XXXX, my XXXX score was XXXX - Exceptional. On XX/XX/XXXX it dropped XXXX points to XXXX - XXXX. There were no other derogatory changes to my credit report that would cause this other than the inaccurate and/or fraudulent reporting of XXXX. On XX/XX/XXXX at XXXXXXXX XXXX I called VCFS and spoke with a representative at extension XXXX regarding this matter. 
This representative confirmed in their system that payment was received and alleged it was received XX/XX/XXXX with an effective date of XX/XX/XXXX. In short, VCFS violated the Fair Credit Reporting Act multiple times and wrecked my credit by falsely reporting a disputed, post-lease mileage fee as delinquent debtwhen it wasnt even debt to begin with. It failed to report to Credit Bureaus that the account was in dispute in the first place then after it failed to tell Credit Bureaus the account was in dispute it changed the status of the account to a derogatory charge-off without noting any dispute. Section 623 ( a ) ( 3 ) of The FCRA Prohibits this. To make matters worse they never notified me they might furnish or did furnish negative information to a Credit Reporting Agency during our dispute. Section 623 ( a ) ( 7 ) prohibits this. To make matters worse, I paid VCFS in full as soon as they clarified the nature of the fee and the Credit Bureaus were never told. Section 623 ( a ) ( 2 ) ( b ) prohibits this. And in one final bizarre twist, the fee itself was never even the kind of debt they were legally allowed to charge off. VCFS furnished a charge-off to CRAs based on an amount that was neither a delinquent debt nor in default. Excess mileage fees in the middle of a dispute are far from established delinquent debts that had been determined, given an established pay off date and accepted. In short, VCFS wrecked my credit by failing to report an honest dispute, then knowingly misreported the dispute, even after I paid in full the post-lease mileage fee that was never a delinquent debt to begin with.

Company response to consumer: Closed with explanation