Consumer complaint received 2025-11-18 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Company communicating payment assistance or payment extension options
Company: AMERICAN HONDA FINANCE CORP
State: TX

Complaint narrative:
# CONSUMER FINANCIAL PROTECTION BUREAU # # FORMAL CONSUMER COMPLAINT -- - # # COMPLAINT SUBMISSION INFORMATION * * Date of Submission : * * XX/XX/XXXX * * Complaint Category : * * Auto Loan / Vehicle Financing * * Sub-Categories : * * Elder Financial Exploitation, Fraudulent Reporting, Debt Collection Violations, Deceptive Trade Practices, Contract Fraud * * Complainant Information : * * * * Name : * * XXXX XXXX XXXX * * Date of Birth : * * XX/XX/XXXX * * Age at Time of Violations : * * XXXX XXXX XXXX ( XXXX XXXX ) * * Status : * * XXXX  Beneficiary * * Representative/Trustee : * * XXXX XXXX XXXX * XXXX XXXX XXXX * * XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX * * XXXX XXXX XXXXXXXX, XXXX, Texas XXXX * * Telephone : * * ( XXXX ) XXXX * * XXXX XXXX XXXX XXXX * * * Primary Respondent : * * XXXX Honda Financial Services XXXX XXXX XXXX XXXX XXXX Location : * * XXXX, Texas * XXXX Industry : * * Automotive Dealer and Financing * * Associated Entity : * * Honda Financial Services XXXX XXXX # # I. EXECUTIVE SUMMARY OF COMPLAINT This formal complaint is submitted on behalf of XXXX XXXX XXXX, an XXXX  consumer and XXXX  beneficiary born XX/XX/XXXX, who has been the victim of serious misconduct, fraudulent practices, financial exploitation, XXXX  abuse, and systematic violations of federal consumer protection laws perpetrated by XXXX Honda Financial Services and XXXX XXXX ( collectively referred to herein as " Respondent '' or " XXXX XXXX '' ). 

The XXXX engaged in a coordinated scheme of deceptive, unfair, and abusive acts and practices that targeted XXXX XXXX, an XXXX  and vulnerable consumer, resulting in substantial financial harm, damage to her creditworthiness, denial of essential services, ongoing harassment through illegal debt collection practices, and severe emotional distress. The misconduct detailed herein constitutes egregious violations of multiple XXXX  consumer financial protection statutes and represents precisely the type of predatory conduct that the Consumer Financial Protection Bureau was established to prevent and remedy. 

The violations enumerated in this complaint include, but are not limited to : XXXX  financial exploitation under XXXX XXXX XXXX XXXX ; violations of the Texas Deceptive Trade Practices Act ; systematic violations of the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq. ; violations of the Federal Trade Commission Act ( FTC Act ), 15 U.S.C. 41-58 ; and violations of the Consumer Financial Protection Act 's prohibition against unfair, deceptive, and abusive acts or practices ( XXXX ). 

-- - # # XXXX. DETAILED FACTUAL BACKGROUND AND CHRONOLOGY OF EVENTS # # # A. The Fraudulent Vehicle Transaction ( XXXX ) In or around the year XXXX, XXXX XXXX XXXX XXXX, then approximately XXXX  years of age and qualifying as an XXXX  person under applicable state and federal law, engaged in what she believed to be a legitimate vehicle purchase transaction with XXXX XXXX for a XXXX XXXX Ridgeline, Vehicle Identification Number ( VIN ) XXXX. 

* * Critical Defect in Transaction - Lack of Legal Possession : * * The foundational and fatal defect in this entire transaction, which renders all subsequent actions by Respondent fraudulent and unlawful, is that the subject XXXX XXXX XXXX XXXX XXXX was sold to XXXX XXXX with a defective title that failed to convey full legal possession and ownership rights to the purchaser. This defect in title was not disclosed to XXXX XXXX at the time of sale, constituting fraudulent concealment of a material fact that, had it been known, would have prevented the transaction from occurring. 

* * Fraudulent Possession Processing as Trade-In : * * Compounding this initial fraud, the dealership processed paperwork representing that the vehicle was being acquired as a trade-in transaction, despite the complete absence of any lawful possession by XXXX XXXX that could have XXXX such a characterization. This fraudulent documentation was created and processed by XXXX despite having actual knowledge that XXXX XXXX did not possess legal title to any vehicle that could serve as trade-in collateral. This deliberate misrepresentation in the transaction documents constitutes fraud in the inducement and documentary fraud. 

# # # B. Fraudulent Credit Reporting and Account Creation ( XXXX * * Creation of False Credit Account : * * In a separate but related act of fraud and identity misuse, Respondent caused to be created and reported to consumer reporting agencies a fraudulent account in XXXX XXXX 's name bearing account number XXXX XXXX XXXXXXXX. This account was placed in XXXX XXXX 's credit file and associated with her personal identifying information without her knowledge, authorization, or consent, and was fraudulently dated with a creation year of XXXX. 

* * Temporal Impossibility - Fraudulent XXXX Date : * * Critically, this fraudulent account was created and double-reported with a purported origination date in the year XXXX, a temporal impossibility given that XXXX XXXX had XXXX business relationship, transaction, or contact whatsoever with XXXX XXXX XXXX Honda Financial Services in or around the year XXXX. This six-year temporal discrepancy between the fraudulent account creation date ( XXXX ) and the actual transaction date ( XXXX ) evidences the deliberate and calculated nature of the fraud perpetrated against XXXX XXXX. 

The fraudulent forward-dating of this account to XXXX served multiple improper purposes : ( XXXX ) creating confusion regarding the actual timeline of events and obligations ; ( XXXX ) potentially manipulating credit reporting to show recent account activity when none existed ; ( XXXX ) confusing and misleading the consumer as to the actual origin and legitimacy of the purported debt; and ( XXXX ) creating documentary confusion to frustrate dispute resolution efforts and making the fraudulent nature of the account less immediately apparent. 

# # # XXXX Severe and Ongoing Credit Damage * * XXXX XXXX Destruction : * * As a direct, proximate, and foreseeable result of Respondent 's fraudulent reporting of the nonexistent XXXX and the subsequent reporting of negative payment history, collection activity, and derogatory information associated XXXX, XXXX XXXX 's XXXX XXXX suffered catastrophic damage. Her XXXX XXXX, which had previously been in the range above XXXX ( indicating exceptional creditworthiness ), plummeted precipitously to a score below XXXX, dropping her from the highest credit tier to a substantially lower tier. 

This destruction of XXXX XXXX 's creditworthiness is not merely a numerical abstraction but has resulted in concrete, quantifiable, and ongoing financial harm. The degradation of her XXXX XXXX has directly caused and continues to cause : XXXX. * * Denial of Essential Services : * * XXXX XXXX has been denied access to food assistance programs and hardship assistance programs for which she would otherwise qualify based on her age, income, and circumstances, but for which she has been rendered ineligible due to the artificially depressed XXXX XXXX resulting from XXXX 's fraudulent reporting. 

XXXX. * * Increased Borrowing Costs : * * XXXX XXXX XXXX seek any form of credit in the future, she will be subjected to higher interest rates, less favorable terms, increased down payment requirements, and potentially outright denial of credit, all attributable to the fraudulent derogatory information placed in her credit file by XXXX. 

XXXX. * * Reputational Harm : * * The presence of collection accounts, delinquencies, and negative payment history in XXXX XXXXXXXX XXXX credit file, all stemming from XXXX 's fraudulent conduct, has damaged her reputation and standing in the financial community. 

XXXX. * * XXXX XXXX Increases : * * In jurisdictions where credit-based insurance scoring is permitted, XXXX XXXX faces XXXX insurance premiums across multiple lines of coverage as a direct result of her artificially XXXX  XXXX XXXX. 

XXXX. * * XXXX and XXXX Consequences : * * The damaged credit profile created by XXXX 's conduct potentially impacts XXXX XXXX 's ability to secure employment ( in positions where credit checks are conducted ) and housing ( where landlords routinely review credit reports as part of tenant screening ). 

# # # XXXX Unlawful Debt Collection Activities and Harassment * * Repossession Threats Despite Ongoing Disputes : * * In flagrant violation of the Fair Debt Collection Practices Act and in conscious disregard of XXXX XXXXXXXX XXXX rights as a consumer and XXXX, XXXX, acting in its capacity as a debt collector or through agents acting on its behalf, engaged in aggressive, threatening, and unlawful collection activities. Specifically, XXXX made repeated threats to repossess property and take adverse action against XXXX XXXX despite : XXXX. The existence of ongoing, unresolved disputes regarding the validity, amount, and legal basis of the purported debt ; XXXX. The complete absence of any legal basis for collection activity given the fraudulent nature of the underlying transaction and account ; XXXX. XXXX XXXXXXXX XXXX status as an elderly consumer entitled to enhanced protections under state elder protection statutes ; XXXX. The clear evidence of XXXX  financial exploitation that should have triggered mandatory reporting obligations rather than continued collection efforts. 

* * Harassment During Vulnerability : * * These collection threats and harassment activities were particularly egregious given their timing and context. They occurred during a period when XXXX XXXX was experiencing financial vulnerability, was attempting to access hardship assistance programs, and was being actively harmed by the very credit reporting that XXXX had fraudulently generated. This conduct demonstrates a callous disregard for XXXX XXXXXXXX XXXX welfare and a willingness to exploit her vulnerable status for financial gain. 

* * Failure to XXXX XXXX Upon Dispute : * * Upon being notified of the disputes regarding the account validity, the defective title, and the fraudulent nature of the transaction, XXXX failed to cease collection activities as required by law. Instead, XXXX continued its collection efforts and threats, failed to provide required validation of the debt, and failed to correct the fraudulent credit reporting, all in violation of mandatory statutory requirements. 

# # # XXXX Systematic XXXX  Financial Exploitation * * Targeting of XXXX  Consumer : * * The totality of Respondent 's conduct toward XXXX XXXX constitutes systematic elder financial exploitation as defined under XXXX  XXXX XXXX XXXX and analogous federal standards. XXXX  financial exploitation encompasses the unlawful appropriation of property or financial resources of an elderly individual through deception, intimidation, undue influence, or breach of fiduciary duty. 

XXXX XXXX, as an individual over the age of XXXX at all relevant times, qualifies as an XXXX  person under applicable statutory definitions. XXXX 's conduct demonstrates the hallmarks of elder financial exploitation : XXXX. * * Targeting XXXX on XXXX : * * The selection of XXXX XXXX as a victim and the particular methods employed suggest targeting based on her XXXX  status and perceived vulnerability. 

XXXX. * * Deceptive Practices : * * The fraudulent title, the misrepresentation of the transaction as a trade-in, and the creation of the false XXXX account all constitute deceptive practices designed to extract money and property from an XXXX  individual. 

XXXX. * * XXXX of XXXX : * * XXXX exploited the trust that elderly consumers typically place in established automotive dealerships and financial institutions, using that trust to facilitate fraudulent transactions. 

XXXX. * * XXXX XXXX : * * The scheme resulted in substantial financial harm to XXXX XXXX through the vehicle transaction itself, the ongoing payment obligations on a fraudulently structured loan, the destruction of her creditworthiness, and the denial of benefits and services. 

XXXX. * * Ongoing Nature : * * Unlike a discrete incident of theft or fraud, XXXX 's conduct represents an ongoing course of exploitation that continues through the persistent fraudulent credit reporting and collection harassment. 

-- - # # XXXX. LEGAL VIOLATIONS AND CAUSES OF ACTION # # # A. XXXX  Financial Exploitation - Texas XXXX XXXX XXXX * * Statutory Framework : * * Texas XXXX XXXX XXXX criminalizes the exploitation of elderly individuals, defined as persons XXXX years of age or older, through the unlawful appropriation of property or resources through deception, coercion, or breach of fiduciary duty. While this statute establishes criminal liability, it also provides evidence of violations of public policy and statutory standards relevant to civil consumer protection claims. 

* * Elements Established : * * XXXX. * * XXXX XXXX : * * XXXX XXXX, born XX/XX/XXXX, was over XXXX  years of age at all relevant times, establishing her status as an elderly individual. 

XXXX. * * Unlawful Appropriation : * * XXXX appropriated funds and property from XXXX XXXX through the fraudulent vehicle transaction and associated financing arrangements. 

XXXX. * * Deceptive Means : * * The appropriation was accomplished through multiple deceptive acts including fraudulent title conveyance, misrepresentation of transaction terms, and creation of false credit accounts. 

XXXX. * * Knowledge and Intent : * * XXXXXXXX XXXX conduct demonstrates knowing and intentional exploitation, evidenced by the systematic nature of the fraud and the creation of deliberately false documentation. 

* * Aggravating Factors : * * The exploitation of XXXX XXXX is particularly egregious due to : - The substantial monetary value involved in automotive financing - The long-term nature of the harm through ongoing credit damage - The vulnerability of the victim as an elderly consumer- The sophistication of the scheme involving multiple fraudulent elements- The continued exploitation through collection harassment despite known disputes # # # XXXX Texas XXXX XXXX XXXX XXXX XXXX XXXX XXXX Violations * * Statutory Authority : * * The Texas XXXX XXXX XXXX XXXX XXXX  XXXX. XXXX. & XXXX. XXXX XXXX et seq., prohibits false, misleading, and deceptive business practices in consumer transactions. The XXXX  provides enhanced protections and remedies for elderly consumers. 

* * Deceptive XXXX Practices XXXX : * * XXXX 's conduct violates multiple specific provisions of the XXXX, including but not limited to : XXXX. * * Section XXXX ( b ) ( XXXX ) : * * Representing that goods or services have characteristics, uses, or benefits that they do not have - specifically, representing that the vehicle sale conveyed full legal title and ownership when it did not. 

XXXX. * * Section XXXX ( b ) ( XXXX ) : * * Representing that goods or services are of a particular standard, quality, or grade when they are not - representing that the transaction complied with legal requirements for valid title transfer when it did not. 

XXXX. * * Section XXXX ( b ) ( XXXX ) : * * Advertising goods or services with intent not to sell them as advertised - advertising and purporting to sell a vehicle with clear title while knowing that clear title would not be conveyed. 

XXXX. * * Section XXXX ( b ) ( XXXX ) : * * Representing that an agreement confers rights, remedies, or obligations that it does not - representing that the financing agreement created a valid security interest when the underlying title defect vitiated such interest. 

XXXX. * * Section XXXX ( b ) ( XXXX ) : * * Failing to disclose information concerning goods or services that was known at the time of the transaction with intent to induce the consumer into a transaction - failing to disclose the title defect and the fraudulent nature of the trade-in XXXXXXXX XXXX 

* * XXXX and XXXX XXXX : * * The systematic and sophisticated nature of XXXX 's conduct, including the creation of false documentation, fraudulent credit reporting with impossible dates, and continued exploitation despite disputes, establishes that the XXXX  violations were committed knowingly and intentionally, supporting claims for treble damages and attorney 's fees. 

* * Enhanced Protection for XXXX XXXX : * * The XXXX provides specific enhanced protections for consumers XXXX  years of age or older. XXXX XXXX 's elderly status at the time of the violations entitles her to these enhanced protections and remedies. 

# # # XXXX Fair Debt Collection Practices Act ( FDCPA ) Violations - 15 U.S.C. 1692 et seq.

* * Applicability and Covered Conduct : * * The Fair Debt Collection Practices Act applies to the collection of debts arising from consumer transactions. XXXXXXXX XXXX conduct in attempting to collect the purported debt arising from the vehicle transaction, either directly or through agents, constitutes debt collection activity subject to the FDCPA 's requirements and prohibitions. 

* * Specific FDCPA Violations : * * * * XXXX. Section XXXX - Harassment or Abuse : * * XXXX violated 15 U.S.C. 1692d by engaging in conduct the natural consequence of which was to harass, oppress, or abuse XXXX XXXX in connection with the collection of the purported debt. This includes : - Threatening repossession despite ongoing disputes- Continuing collection efforts despite knowledge of elder exploitation - Engaging in aggressive collection tactics against an elderly consumer- Failing to respect the consumer 's vulnerable status * * XXXX. Section XXXX - False or Misleading Representations : * * XXXX violated 15 U.S.C. 1692e and its subsections by using false, deceptive, or misleading representations in connection with debt collection, including : - * * Section XXXX ( XXXX ) : * * False representation of the character, amount, or legal status of the debt - representing that a valid debt existed when the underlying transaction was fraudulent and the debt therefore void or voidable. 

- * * Section XXXX ( XXXX ) : * * Representation or implication that nonpayment will result in repossession when no present legal right to such action exists due to the defective title and fraudulent transaction. 

- * * Section XXXX ( XXXX ) : * * Threats to take action that can not legally be taken or that is not intended to be taken - threatening repossession without legal basis. 

- * * Section XXXX ( XXXX ) : * * Communicating credit information known or which should be known to be false - reporting a the fraudulent XXXX account and associated negative information to credit bureaus. 

- * * Section XXXX ( XXXX

Company response to consumer: Closed with explanation