Consumer complaint received 2025-11-06 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: AMERICAN HONDA FINANCE CORP
State: IL

Complaint narrative:
EXCESSIVE FINANCING CHARGES + FALSE STATEMENTS TO CFPB- WITH DOCUMENTARY PROOF I am filing this second complaint regarding American Honda Finance Corporation ( AHFC ) XXXX XXXX XXXX XXXX for : XXXX. Excessive and potentially unlawful financing charges ( {$19000.00} ) imposed after forced vehicle exchange XXXX. False statements made to CFPB in response to my first complaint ( # XXXX ) XXXX. Possible Truth in Lending Act violations ( undisclosed financing charges ) XXXX. Continued refusal to provide hardship assistance after XXXX XXXX REFERENCE TO FIRST COMPLAINT : On XX/XX/XXXX, I filed CFPB Complaint # XXXX documenting AHFC 's XXXX abandonment of my financial hardship request. AHFC responded on XX/XX/XXXX with a response that : - Contained false statements about phone calls and emails - Provided XXXX substantive hardship assistance - Completely ignored {$19000.00} in excessive financing charges I documented in my XX/XX/XXXX executive escalation email to AHFC 's CEO The CFPB closed my first complaint based on AHFC 's inadequate response. I am now filing this second complaint with additional documentary proof to demonstrate : XXXX. The excessive financing charges AHFC imposed on me 2. AHFC 's false statements to the CFPB XXXX. AHFC 's pattern of deceptive practices XXXX. Mathematical impossibility of AHFC 's claimed XXXX " payoff '' XXXX. The forced nature of the vehicle exchange ( not voluntary trade ) BACKGROUND - DEALER FALSE-PROMISE AND USED VEHICLE SOLD AS NEW : In XX/XX/XXXX, I leased a XXXX XXXX XXXX based on dealer representation that it had a Heads Up Display ( HUD ) feature, which I require for medical/vision accommodation. After delivery, I discovered : XXXX. The vehicle did NOT have HUD despite the dealer 's promise XXXX. The " new '' vehicle had XXXX miles and XXXX XXXX oil life ( used vehicle sold as new ) I immediately escalated to XXXX XXXX XXXX, which opened XXXX ID # XXXX in XXXX. On XX/XX/XXXX, the dealership sent me a written email admitting : " I apologize the vehicle was not available. '' FORCED EXCHANGE- NOT VOLUNTARY TRADE : I did not choose to " upgrade '' to the XXXX After discovering the XXXX lacked the promised HUD and was delivered used ( not new as represented ), I spent XXXX MONTHS attempting to resolve this with the dealer : XX/XX/XXXX - XX/XX/XXXX : DEALER ABANDONMENT - Unable to get account number to make payments despite multiple requests via email, phone, text, and XXXX DMs - First payment became late due to dealer failure to provide account information - Finally received account number on XX/XX/XXXX after XXXX month of requests - General Sales Manager XXXX XXXX apologized for lack of response - Continued radio silence on HUD issue and vehicle condition XX/XX/XXXX : DEALER NEGLIGENCE REVEALED - Internet Manager XXXX XXXX revealed all my emails had been " stuck in the email system '' for months, explaining why I received no responses - Promised to " make this right '' and that someone would call that day - No call received ( again ) - XXXX XXXX  later emailed stating he was " working on fixing this '' XX/XX/XXXX : ATTEMPTED LIKE-FOR-LIKE EXCHANGE ( XXXX XXXX XXXX ) - Dealer located replacement XXXX XXXX XXXX with correct HUD configuration in my preferred color- This was my attempt at a SAME-MODEL exchange to correct the dealer 's false-promise, NOT an upgrade - Scheduled appointment to exchange XXXX XXXX  lease for another XXXX  lease - XXXX hours before the scheduled appointment, Sales Manager XXXX XXXX notified me the replacement XXXX  had been hit and was now in the body shop - no longer available - The like-for-like solution was sabotaged by dealer negligence XX/XX/XXXX : FORCED INTO XXXX  AS ONLY REMAINING OPTION - With no XXXX  solution available ( dealer sabotaged the XX/XX/XXXX exchange ) and having paid XXXX months for a defective vehicle with no resolution, I was forced to accept the XXXX exchange- The XXXX  was presented as the only remaining XXXX model with HUD capability- This was not a voluntary upgrade decision - it was the result of XXXX months of dealer incompetence, false promises, sabotaged solutions, and elimination of all other options - After XXXX Executive Office Customer Relations ( XXXX ) got involved, the exchange was finalized The XXXX delay was NOT my indecision- it was dealer negligence ( emails stuck in system for months, repeated non-responses, broken promises to call, sabotaged XXXX exchange ). AHFC and dealer then penalized ME with {$20000.00} in financial burden for THEIR failures. 

DOCUMENTARY PROOF - ILLINOIS TAX RETURNS + PAYMENT RECEIPTS : Illinois Department of Revenue tax return ( Form ST-556-LSE ) dated XX/XX/XXXX shows : - RDX Selling Price : {$45000.00} - Payment receipt shows {$1000.00} down payment paid by debit card Illinois Department of Revenue tax return ( Form ST-556-LSE ) dated XX/XX/XXXX shows : - XXXX  Selling Price : {$64000.00} - Payment receipt shows {$1300.00} first monthly payment paid by debit card EXCESSIVE FINANCING CHARGES - {$19000.00} WITH MATHEMATICAL PROOF : RDX Lease ( XX/XX/XXXX - terminated XX/XX/XXXX ) : - Selling Price ( IL Tax Return ) : {$45000.00} - Down Payment Paid : {$1000.00} - Monthly Payment : {$940.00} - Payments Made : XXXX ( totaling {$2800.00} ) - Total Customer Paid : {$3900.00} - Rent Charge ( finance charge ) : {$5600.00} over XXXX XXXX XXXX XXXX XXXX  months into lease when forced to exchange due to dealer failures AHFC 's Claimed XXXX  " Payoff '' : {$58000.00} MATHEMATICAL IMPOSSIBILITY : Vehicle cost : {$45000.00} Customer paid : {$3900.00} ( down payment + 3 monthly payments ) AHFC claims payoff : {$58000.00} Difference : {$12000.00} MORE than the vehicle 's purchase price How can a customer owe {$12000.00} MORE than a vehicle 's purchase price after only XXXX  months and paying {$3900.00}? This is mathematically impossible without hidden charges, fraudulent accounting, or undisclosed fees. 

XXXX Lease ( XX/XX/XXXX - present ) : - Selling Price ( IL Tax Return ) : {$64000.00} - Monthly Payment : {$1300.00} - Cash Paid at Signing : {$3600.00} - Rent Charge ( finance charge ) : {$9200.00} over XXXX  months - Prior credit/lease balance rolled in : {$16000.00} FINANCIAL BREAKDOWN OF EXCESSIVE CHARGES : Component XXXX : Excessive Negative Equity XXXX claimed : - XXXX payoff : {$58000.00} - RDX value : {$42000.00} - " Negative equity '' : {$16000.00} Real depreciation calculation : - XXXX  cost : {$45000.00} ( IL Tax Return ) - After XXXX  months value : {$42000.00} ( per AHFC ) - Real depreciation : {$3200.00} Excessive negative equity : {$16000.00} - {$3200.00} = {$12000.00} overcharge This {$12000.00} represents the " impossible '' amount I supposedly owed above the vehicle 's purchase price after only XXXX  months. AHFC has never explained how this is possible or what charges comprise this amount. AHFC penalized me {$12000.00} for dealer failures that were documented in their own XXXX ID # XXXX. 

Component XXXX : Excess Rent Charge - XXXX  Rent Charge : {$5600.00} ( 48 months ) - XXXX  Rent Charge : {$9200.00} ( 48 months ) - Increase : {$3600.00} Analysis : - XXXX  price : {$45000.00} - MDX price : {$64000.00} - Vehicle cost increase : XXXX XXXX  - Rent charge increase : XXXX XXXX The rent charge ( interest ) increased XXXX XXXX while the vehicle price only increased XXXX XXXX. This suggests undisclosed penalty-tier financing, higher interest rate/money factor, or hidden fees not properly disclosed under TILA. 

TOTAL EXCESSIVE FINANCING : {$19000.00} ( {$16000.00} negative equity + {$3600.00} excess rent charge ) TOTAL FINANCIAL BURDEN ON CUSTOMER : Cash paid ( down payments only ) : - XXXX  down payment : {$1000.00} - XXXX  cash at signing : {$3600.00} - Total cash down payments : {$4700.00} Plus negative equity rolled in : {$16000.00} TOTAL BURDEN : {$20000.00} to resolve dealer false-promise, used vehicle sold as new, XXXX months of dealer incompetence, sabotaged XXXX  solution, and forced exchange - all documented in AHFC 's own Case ID # XXXX TRUTH IN LENDING ACT CONCERNS : AHFC failed to properly disclose : XXXX. The basis for the {$12000.00} " impossible '' amount above vehicle purchase price XXXX. The basis for the {$3600.00} excess rent charge ( 65 % increase vs XXXX XXXX vehicle cost increase ) XXXX. Whether I was placed in penalty/higher-risk financing tier due to forced exchange XXXX. How AHFC calculated the {$16000.00} negative equity after only 3 months XXXX. What specific charges comprise the difference between {$45000.00} purchase price and {$58000.00} claimed payoff XXXX. Why I was penalized financially for dealer failures documented in AHFC 's own case file The lease documents show Rent Charge amounts but do NOT explain : - Why the rent charge increased XXXX XXXX beyond vehicle cost difference - Whether I was assigned different financing tier/rate on XXXX  vs XXXX  - The mathematical basis for owing {$12000.00} more than vehicle purchase price after XXXX  months - What hidden charges, fees, or penalties were applied as punishment for dealer incompetence FALSE STATEMENTS IN FIRST CFPB RESPONSE : In AHFC 's XX/XX/XXXX response to Complaint # XXXX, they made provably false statements : False Statement # XXXX : " Several outbound phone calls made '' - Reality : I received XXXX phone call, AFTER filing the CFPB complaint - For XXXX XXXX before the complaint ( XX/XX/XXXX - XX/XX/XXXX ), I received XXXX calls - I have voicemail recording from XX/XX/XXXX proving AHFC received my hardship request, then abandoned me False Statement # XXXX : " Email sent '' - Reality : I received XXXX email on XX/XX/XXXX ( after CFPB complaint ) asking for phone call - For 84 days before the complaint, I received XXXX hardship response emails PATTERN OF DECEPTIVE PRACTICES : XXXX. XX/XX/XXXX : Dealer false-promise about XXXX  HUD + used vehicle sold as new ( documented in Case ID # XXXX ) XXXX. XXXX XXXX : XXXX months of dealer negligence, broken promises, emails stuck in system, sabotaged XXXX  exchange XXXX. XX/XX/XXXX : AHFC structured excessive financing ( {$19000.00} ) after forced exchange, created mathematically impossible " payoff '' of {$12000.00} above purchase price, penalized customer for dealer failures XXXX. XXXX XXXX : XXXX abandonment of hardship request after confirmed receipt XXXX. XX/XX/XXXX : False statements to CFPB to close complaint without resolution XXXX. Present : No hardship assistance, excessive financing unaddressed, now past due on XXXX payment CURRENT SITUATION : - I am unemployed and unable to make payments - XX/XX/XXXX payment is past due - XX/XX/XXXX payment due XX/XX/XXXX - MDX payment ( {$1300.00} ) is unsustainable due to AHFC 's excessive financing structure imposed after forced exchange - AHFC has provided XXXX hardship assistance after XXXX XXXX  - AHFC refuses written communication despite multiple requests - AHFC has not explained the mathematical impossibility of their XXXX  payoff calculation - AHFC has not acknowledged forcing me to absorb {$20000.00} in costs for dealer failures POTENTIAL VIOLATIONS : XXXX. Truth in Lending Act ( TILA ) : Failure to properly disclose basis for {$3600.00} excess rent charge, {$12000.00} " impossible '' payoff amount, and possible penalty-tier financing structure 2. Unfair/Deceptive Practices : Charging me {$19000.00} in excessive financing for dealer/AHFC failures documented in their own Case ID and dealer 's written admission ; structuring mathematically impossible payoff to maximize customer cost ; penalizing customer financially for XXXX months of dealer incompetence and sabotaged solutions XXXX. False Statements to Federal Regulator : Making provably false claims to CFPB about phone calls and emails XXXX. Failure to Provide Hardship Assistance : XXXX abandonment after confirmed receipt XXXX. Fraudulent Accounting : Claiming customer owes {$12000.00} MORE than vehicle purchase price after only XXXX  months without explanation or documentation RECENT ILLINOIS PRECEDENT : In XX/XX/XXXX, the FTC and Illinois Attorney General secured a {$20.00} XXXX settlement with XXXX XXXX XXXX for similar deceptive auto financing practices in Illinois. This demonstrates regulatory intent to pursue these violations aggressively. 

I AM ATTACHING : XXXX. Illinois tax return showing XXXX  selling price {$45000.00} XXXX. XXXX  down payment receipt ( {$1000.00} ) XXXX. Illinois tax return showing XXXX  selling price {$64000.00} XXXX. XXXX first payment receipt ( {$1300.00} ) XXXX. XXXX  lease agreement showing rent charge {$5600.00} XXXX. XXXX XXXX XXXX showing rent charge {$9200.00} and negative equity {$16000.00} ACCOUNT INFORMATION : - Current Account : XXXX ( XXXX XXXX, XX/XX/XXXX - present ) - Previous Account : XXXX ( XXXX XXXX, XX/XX/XXXX - XX/XX/XXXX, terminated after XXXX  months ) - AHFC Case ID : XXXX ( XXXX XXXX  HUD issue + forced exchange ) - First CFPB Complaint : XXXX ( filed XX/XX/XXXX )

Company response to consumer: Closed with explanation