Consumer complaint received 2025-08-01 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: AMERICAN HONDA FINANCE CORP
State: MI

Complaint narrative:
I am filing this complaint against American Honda Finance XXXX ( XXXX ) for failure to comply with federal consumer protection laws and for making materially false and misleading statements in connection with the securitization of my lease. Without my knowledge or consent, XXXX transferred my lease into a Special Purpose Entity ( SPE ) and bundled it with other contracts into Asset-Backed Securities ( ABS ), which were then sold to investors. These transfers are publicly disclosed in XXXX  SEC filings, including their XXXX, XXXX, and XXXX. By securitizing the lease, XXXX extinguished its beneficial interest, and my lease obligation was monetized through investor funds. 

However, XXXX continued to report the lease on my credit report as if it retained ownership. This is deceptive, inaccurate, and damaging to my credit standing. At no point did XXXX disclose the transfer, notify me of the trust or CUSIP associated with the pooled lease, or provide any accounting showing how the obligation was satisfied through securitization. 

Additionally, XXXX repossessed the vehicle and reported the lease as a write-off, further eliminating any claim of outstanding obligation. Despite this, XXXX continued to report the account as active or derogatory on my credit report, which is false and misleading. This raises serious concerns of double recovery, as the lease was securitized and monetized, then written off as a loss while still being reported against my credit. 

AHFCs own ABS prospectus, including the XXXX XXXX XXXX XXXX, states that it acquires both retail installment contracts and motor vehicle leases from customers, and pools them into securitized trusts. SEC XXXX XXXX requires that parties to such assets be notified when their contracts are assigned or transferred. AHFCs filings imply that such notifications are a routine part of the securitization process. Yet, I received no notice of assignment or disclosure regarding the transfer of my lease into the trust structure. This omission constitutes materially misleading conduct and XXXX represent a breach of AHFCs obligations under both securities law and consumer protection statutes. 

Further, XXXX appears to have made false attestations in its securities filings, claiming that lessees were or would be notified of assignments or servicing transfers, when in fact I received no such notice. This could indicate a pattern of systemic fraud and noncompliance. There is also a conflict of interest in XXXX  process of selling the lease from itself to a trust it also controls, obscuring true ownership while continuing to collect payments and report to consumer credit agencies. This structure calls into question the legality and ethics of the assignment, as XXXX both creates and services the trust, and directly benefits from the securitization. 

This conduct violates the Truth in Lending Act ( TILA, 12 CFR 1026 ), the Fair Credit Reporting Act ( 15 USC 1681 ), the Consumer Financial Protection Act ( 12 USC 5531 & 5536 ), Title 12 and Title 31 of the U.S. Code, and multiple SEC rules regarding misrepresentation, conflict of interest, and failure to notify affected consumers of material changes in asset ownership and servicingparticularly under SEC Rule XXXX. 

I request immediate investigation, correction of credit reporting, and enforcement action as appropriate under federal law.

Company response to consumer: Closed with explanation