Consumer complaint received 2025-06-03 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: AMERICAN HONDA FINANCE CORP
State: NY

Complaint narrative:
I had a car accident back in XXXX of XXXX and it was considered a total loss. there was a check of {$18000.00} sent to honda financial ( the bank i got the loan through ). XXXX has confirmed with me that the check was sent directly to Honda financial in XXXX of XXXX and was then cashed. Honda financial sent over a lien release to XXXX so they can proceed with disposal of the vehicle .. After this process was done, then gap insurance was the next step. I was then being told that i did NOT have gap insurance when i in fact did and do i have proof of the gap insurance added when i purchased the vehicle. I had several agents tell me i did not have the gap insurance and i also had other agents tell me i did due to me purchasing the vehicle in the state of New York ( Honda financial required gap if vehicle is purchased in XXXX ). After months of this My credit score dropped by about XXXX points and affected me AND my cosigner a lot. i didnt think anything of it as an account has been closed. after nearly a year ( my credit still wasnt the best but i needed a vehicle at this point ) I tried to apply for a loan and got denied due to a {$24000.00} balance in collections from honda financial. I then gathered information from XXXX and the dealership i purchased the vehicle from with proof of gap and total loss settlement on XX/XX/XXXX. After i received all of the paper work, I called honda financial to see exactly why i have a full balance showing in collections. The agent then explained to me that the balance i owed was actually a little over {$1900.00} ( i have not gotten the exact amount in written form ). After i asked twice for explanation on why the correct balance was never reported ( they had a whole year to do so ) he couldnt really give me an explanation that made sense. instead he transferred me over to credit control which is the collections agency that honda financial hired to collect my debt. I spoke to an agent and set up a payment plan with them. I also asked this agent the same question as to why the balance on my credit was not the correct balance. He explained to me that on his end of the screen it was only showing the current balance of {$1900.00} and not the full amount so I would have to contact honda financial to get further information. Fast forward to Tuesday morning on XX/XX/XXXX. I call honda financial again to see if i can clear this up once again. Again the agent was no help and tried transferring me over to the collections agency because apparently they are the onces who report that balance since honda no longer has access to my account. Her words. I have been dealing with them since the accident and they are very very unorganized with my case. my credit has been severely hurt as well as my co-signers. I havent been able to get myself another vehicle or apartment due to this false high balance showing on my report. I would like this fixed immediately but it seems like neither agency knows the law/ seriousness of this type of balance showing on someones credit.

Company response to consumer: Closed with explanation