Consumer complaint received 2025-12-24 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Problem with fees charged
Company: BMW Financial Services NA, LLC
State: MD

Complaint narrative:
Consumer : XXXX XXXX XXXX Company : BMW Financial Services NA , LLC Account : Lease No. XXXX Vehicle : XXXX BMW XXXX XXXX XXXX : Improper totalloss accounting, misapplication of insurance proceeds, creation of false deficiency, and failure to return surplus funds. 

-- - Summary of the Problem BMW Financial Services is improperly claiming a deficiency balance of {$10000.00} after my leased vehicle was declared a total loss. This deficiency is based on a noncontractual payoff amount that includes the residual value and ignores the contractual payoff stated in BMW FSs own documents. 

BMW FS has also failed to return {$28000.00} in surplus insurance proceeds that legally belong to me. 

-- - 1. BMW FS Provided Two Contradictory Payoff Amounts BMW FSs XX/XX/XXXX Payoff Letter lists : Outstanding Balance ( Adjusted Lease Balance ) : {$26000.00} Residual Value : {$50000.00} Total Payoff Amount : {$75000.00} ( purchase payoff ) The Outstanding Balance is the contractual totalloss payoff under Section XXXX of the lease. 

However, BMW FS later claimed a Total Account Balance of {$75000.00}, which improperly includes the residual value and future rent charges. This number does not appear anywhere in the lease and contradicts their own payoff letter. 

-- - 2. Insurance Proceeds Exceeded My Total Contractual Obligation My total contractual obligation at the time of loss was : {$26000.00} ( Outstanding Balance ) {$1000.00} ( Deductible ) {$300.00} ( Late Charges ) Total : {$27000.00} XXXX XXXX paid BMW FS : {$56000.00} This created a surplus of {$28000.00}, which BMW FS has not returned. 

-- - 3. BMW XXXX XXXXisapplied Insurance Funds BMW FS applied insurance proceeds to the residual value first, then claimed a deficiency on the lease balance. This is the opposite of the payment priority required by Section 27, which mandates that insurance proceeds be applied to the Adjusted Lease Balance first. 

Applying funds to the residual value which is not owed in a total loss artificially created a deficiency. 

-- - 4. Improper Activation of XXXX Coverage BMW FS states that {$8400.00} was paid by XXXX. 

XXXX only applies when : Insurance < Adjusted Lease Balance But in this case : Insurance : {$56000.00} Adjusted Lease Balance : {$26000.00} Insurance exceeded the payoff by more than {$30000.00}. XXXX should not have been triggered. This suggests a misallocation of funds and improper accounting. 

-- - 5. BMW FS Is Withholding Surplus Funds Owed to Me After satisfying the contractual payoff and fees, BMW FS should have returned : {$28000.00} BMW FS has refused to return this surplus and continues to report a false deficiency. 

-- - What I Am Requesting From the CFPB I am requesting that the CFPB require BMW Financial Services to : 1. Apply the {$56000.00} insurance proceeds to the Outstanding Balance of {$26000.00} and associated fees. 
2. Remove the improper deficiency balance of {$10000.00}.

3. Issue a corrected statement showing a {$0.00} balance.

4. Return the surplus insurance proceeds of {$28000.00} to me.

5. Review BMW FSs totalloss accounting practices, including : Use of noncontractual payoff amounts Misapplication of insurance funds Improper activation of XXXX coverage -- - Attachments I Will Upload BMW FS Payoff Letter ( XX/XX/XXXX ) BMW FS Deficiency Letter ( XX/XX/XXXX ) XXXX XXXX XXXX Payment Sheet XXXX Payment Confirmation My XXXX history Lease Sections 13 and 27 My dispute letters to BMW FS

Company response to consumer: Closed with explanation