Consumer complaint received 2025-04-08 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem with paying off the loan
Company: AMERICAN HONDA FINANCE CORP
State: WI

Complaint narrative:
Subject : Complaint Regarding XXXX XXXX XXXX XXXX  of GAP Waiver Addendum Date : XX/XX/XXXX To : Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX, XXXX XXXX Dear Sir/Madam, I am writing to formally file a complaint against my auto lender, Acura Financial Services , regarding the mishandling of the GAP waiver addendum associated with my auto loan. Despite my clear agreement to this waiver, the lender has failed to execute or honor the terms as outlined, causing confusion, financial strain, and potential harm to my credit. 
Details of the Complaint : Account Information : o Loan Number : XXXX o Vehicle : XXXX XXXX XXXX XXXX XXXX 's Name : XXXX XXXX o Lender XXXX XXXX XXXX XXXX  Date of Loan Agreement : XX/XX/XXXX Date of GAP Waiver Addendum : XX/XX/XXXX I signed a GAP waiver addendum on XX/XX/XXXX, which was meant to protect me in the event of a total loss of my vehicle. However, the lender has failed to execute the addendum properly by failing to process the benefit according to the terms of the GAP Waiver Addendum. This has left me in a vulnerable position and potentially responsible for costs that should have been covered under the terms of the agreement. 
Despite my attempts to resolve this issue with the lender directly by speaking to numerous representatives, within customer service, collections, XXXX XXXX, and XXXX XXXX the problem remains unresolved. I have been told that a manager will call me back to get this resolved but nobody ever calls me back. I have requested to discuss the contractual terms with their corporate legal team, but all I receive is erroneous explanations from customer service representatives that have no understanding of contractual terms, nor the specific content of the GAP Waiver Addendum language. 
I am requesting that the CFPB investigate the lenders failure to honor the GAP waiver addendum and ensure that they are held accountable for the mismanagement of my account. I would also like to request assistance in resolving this issue, including but not limited to, ensuring the proper application of the GAP waiver and the removal of any financial burdens or damage to my credit that resulted from this error. 
On XX/XX/XXXX the covered vehicle was involved in a single vehicle collision that resulted in the vehicle in question being declared a total loss. 
At the time that the total loss occurred, the principal balance on the loan was {$35000.00} The most recent payment prior to the total loss was made on XX/XX/XXXX There were seven days of interest accrual between the date of the last payment and the date of total loss. The per diem during this period was {$3.00} ; this resulted in an interest accrual of {$27.00} as of the date of the total loss and a complete payoff on XX/XX/XXXX of {$35000.00} XXXX x XXXX x {$35000.00} = {$27.00} The GAP Waiver Addendum agrees to waive their contractual right to recover the difference between the Outstanding Balance due at the time of a Total Loss and the Fair Market Value of the Vehicle at the time of total loss. 

On XX/XX/XXXX, XXXX XXXX XXXX ( my primary insurance carrier ) determined the fair market value of my vehicle to be {$26000.00}, and after the application of the deductible, they remitted payment of {$26000.00} On XX/XX/XXXX Safe Guard, the administrator for the GAP addendum, sent a letter to Acura Financial Services instructing them to waive the balance pursuant to the terms of the GAP Waiver Addendum The attached GAP Waiver Addendum specifically states that this agreement is not insurance The XX/XX/XXXX, Letter from XXXX XXXX to XXXX XXXX XXXX mentions a subsequent insurance policy payment that is not mentioned anywhere in my GAP waiver addendum. 

Instead of waiving the balance as of the date of total loss as outlined in the GAP XXXX XXXX, XXXX XXXX XXXX applied their insurance proceeds to my loan as of the date of receipt, in XXXX different transactions. 

No explanation has been offered by Acura Financial Services as to why this payment was applied to my loan, when the waiver addendum clearly states that the balance is to be waived. 
The letter explains that the insurance benefit is to reimburse XXXX for any losses that arise out of their waiver obligation. 
The qualified benefit explained in the letter from XXXX XXXX to XXXX XXXX Services exactly matches the outstanding balance as of the date of loss. 
The misapplication of the GAP Waiver addendum has resulted in a remaining balance of {$170.00} Based on the language of the GAP Waiver Addendum, and the fact that XXXX did not perform to the terms of the addendum, this remaining balance was to be waived pursuant to the terms of the Addendum and should not be outstanding. 

Supporting Documents : Copy of the original auto loan agreement Copy of the GAP waiver addendum Correspondence from Safe Guard the GAP Waiver plan administrator The payment history Please do not hesitate to contact me if additional information is needed. I look forward to your assistance in resolving this matter promptly. 
Thank you for your attention to this issue. 
Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX, XXXX, WI XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation