Consumer complaint received 2026-04-23 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: AMERICAN HONDA FINANCE CORP
State: NY

Complaint narrative:
Subject : Deceptive Auto Financing Practices and Improper Reinstatement of Paid Loan Balance I am filing a formal complaint against American Honda Finance Corporation regarding deceptive lending practices at the time of vehicle purchase, as well as the improper reinstatement of a loan balance that had previously been satisfied and inaccurately reported to the credit bureaus. At the time I purchased my XXXX XXXX XXXX, I was led by the salesperson and finance department to believe that I was receiving an interest rate ( APR ) of less than 7 %. I signed the contract under this understanding while seated at the dealership. After signing, I requested a copy of the contract but was told the printer was not working and that I could return the following day to retrieve it. However, I did not receive a copy of the contract until nearly a month later. Upon reviewing the document, I discovered that the actual APR was in excess of 20 %, which was never disclosed to me at the time of signing. This discrepancy represents a significant and material misrepresentation of the financing terms. When I attempted to address this issue, I received no clear explanation and was given the runaround. Separately, on XX/XX/XXXX, I was involved in a motor vehicle accident in which my vehicle was declared a total loss. I was rear-ended, and the at-fault partys insurance accepted full liability. Payment was issued directly to XXXX XXXX. I also had GAP insurance in place, which should have covered any remaining balance not satisfied by the primary insurance payout. Following these payments, American Honda Finance Corporation reported the account as paid with a XXXX balance to the credit bureaus. However, in or around XX/XX/XXXX, the same debt was unexpectedly reinserted into my credit report without any prior notice, explanation, or justification. I have contacted Honda Financial to resolve both the financing discrepancy and the reappearance of the debt, but the issues remain unresolved. This situation has caused significant financial hardship and damage to my credit. These actions raise serious concerns regarding violations of federal consumer protection laws, including but not limited to : The Truth in Lending Act ( TILA ), for failure to clearly disclose accurate loan terms The Fair Credit Reporting Act ( FCRA ), for reporting inaccurate and misleading information Potential unfair or deceptive acts or practices ( UDAP ) I am requesting the following : A full investigation into the original financing terms and circumstances under which the contract was executed Written clarification and justification for the APR discrepancy Immediate investigation into the reinstated loan balance Correction and removal of all inaccurate reporting to XXXX, XXXX, and XXXX Permanent resolution of any outstanding balance that should have been satisfied through insurance and GAP coverage I am prepared to provide supporting documentation, including insurance records, GAP coverage confirmation, and a copy of the contract, upon request. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NY XXXX Phone : XXXX Email : XXXX XXXX

Company response to consumer: Closed with explanation