Consumer complaint received 2024-11-15 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: AMERICAN HONDA FINANCE CORP
State: VA

Complaint narrative:
I am writing to file a formal consumer complaint against American Honda XXXX XXXX, American Honda Finance Corporation, and several affiliated XXXX dealerships, including XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, and XXXX XXXX XXXX. This complaint concerns their systematic violation of federal and state consumer protection laws and engagement in deceptive practices under the Racketeer Influenced and Corrupt Organizations ( RICO ) Act. 

During the COVID-19 pandemic and subsequent vehicle shortages, these entities orchestrated a nationwide bait-and-switch advertising scheme through their platform, XXXX. They advertised used vehicles at lease-end purchase prices while failing to disclose that these vehicles were unavailable to the general public due to existing lease contracts granting property rights to lessees. These practices misled consumers into believing these " bait '' cars were available for purchase. 

Key Issues : False Advertising : Honda and its affiliates listed vehicles for sale that they could not deliver, as these vehicles were subject to lease-end purchase options. Consumers were drawn in with these low-priced offers but were then redirected to purchase more expensive " switch '' cars. 
Financing offers for the advertised vehicles were also fraudulent, as loans tied to these cars could not be honored when the vehicles were unavailable. 
Racketeering Practices : This deceptive scheme was executed systematically across Honda 's nationwide dealership network using wire fraud and other illegal activities. The fraudulent advertisements generated sales leads, which were exploited to push consumers toward higher-priced cars and loans, causing financial harm to unsuspecting buyers. 
Consumer Harm : Consumers, including myself, were damaged by these practices. I was unable to purchase a car at the advertised price and was forced into a more expensive alternative. For example : An XXXX XXXX was advertised for {$29000.00} but was unavailable due to an existing lease. I ultimately purchased a similar model for {$36000.00} {$7100.00} more than the bait price. 
The deceptive advertising also wasted significant time and resources, including travel expenses. 
Requested Action : I urge the CFPB to investigate these practices thoroughly. The defendants ' actions not only harm individual consumers but also undermine fair competition in the automotive market. Specifically, I request that the CFPB : Impose penalties for the false advertising and racketeering activities. 
Require the defendants to cease their deceptive practices immediately. 
Mandate restitution to affected consumers for financial losses incurred due to these schemes. 
I am prepared to provide further documentation and details upon request to support this complaint. Please ensure swift action to prevent continued harm to other consumers. 

DO NOT HAVE HONDA OR THE DEALERS CONTACT ME AS THEY ARE REPRESENTED IN THE MATTER

Company response to consumer: Closed with explanation