Consumer complaint received 2025-07-21 00:00:00
Product: Debt collection — Auto debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: HYUNDAI CAPITAL AMERICA
State: CA

Complaint narrative:
Facts of the Case : - On * * XX/XX/year> * *, my vehicle was declared a * * total loss * *. <-At that time, the insurance claim was still in process, and no final settlement had been made. According to the supervisor at XXXX XXXX XXXX, debt collection allegedly began on this very dayXXXX XXXX, XXXXeven though I had not yet received any notice of the insurance settlement or any billing statements reflecting a balance due. Hyundai claims that because 120 days have passed since that date, the account was charged off. However, this is highly unreasonable and misleading. It is neither standard nor fair to start the 120-day delinquency clock from the day the vehicle was declared a total loss, particularly when I had not been given an accurate or updated balance, and when the claim was still under review by the insurance company. 

- On * * XX/XX/year> * *, the insurance company issued a payout to XXXX XXXX for the value of the vehicle, which was {$21000.00} <- However, the insurance claim was still pending, not finalized. 

* * In Between, I checked my online portal, and it was saying that there are no dues. 

- On * * XX/XX/year> * *, I personally made a payment covering two months of missed monthly payments, per monthly payment due request. 
- On * * XX/XX/year> * *, XXXX XXXX sent a demand letter to my home address requesting full payment of the remaining balance within 30 days but I have not received this letter. Today, I found it from online portal, but this letter * * did not include any mention * * of a charge-off, delinquency status, or a warning that the account could be sent to collections or charged off. 
- Despite the insurance payout and my active payment effort, Hyundai reported a * * charge-off on XX/XX/year> * *. 
- On * * XX/XX/year> * *, I voluntarily paid off the * * entire remaining balance * * on the loan, without involving any collections agency. When I called XXXX  XXXX  at the time, they were trying to collect the monthly payment only. At the time either, I was not aware of my account being delinquent. 

Given these facts, I believe the charge-off entry is inaccurate for the following reasons : - * * Hyundai Finance had already recovered a significant portion of the loan via insurance payout. * * - * * I was actively making payments and cooperating in good faith. * * - * * There was no appropriate notice that my account was in danger of being charged off. * * - * * The account was never truly " uncollectible '' or abandoned. * * The charge-off designation has unfairly damaged my credit despite my full payment and cooperation. I respectfully request that this charge-off be removed from my credit report or, at the very least, corrected to accurately reflect the resolved status of the account and the procedural deficiencies in how it was handled.

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