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Apply for Financing: American honda finance
American Honda Finance Corporation (AHFC), dba Honda Financial Services, helps to satisfy the financing needs of consumers of Honda and Acura automobiles, sport utility vehicles and minivans, Honda and Acura parts and accessories, Honda motorcycles and Honda power equipment.
NEWARK-American Honda Finance Corporation ("American Honda Finance"), a California-based auto leasing and financing company, has settled a suit alleging unlawful activities relating to lease-end transactions by agreeing to pay restitution to certain consumers, comply with the State's leasing laws, and attempt to resolve complaints filed with the New Jersey Division of Consumer Affairs, Attorney General John J. Farmer and Consumer Affairs Director Mark S. Herr said today.
As part of the agreement, finalized May 16, American Honda Finance will also pay the State $103,000 for administrative costs.
The agreement comes 10 months after New Jersey filed suit against the company alleging it violated the States Consumer Protection Leasing Act ("CPLA") and the Consumer Fraud Act by overcharging consumers for "excessive wear and damage" on returned leased vehicles, denying them the opportunity to dispute the charges and failing to return consumers security deposits within a timely manner. American Honda Finance has made no admissions of any wrongdoing.
"This agreement accomplishes what we set out to do when we first filed against American Honda Finance, Attorney General Farmer said. It provides relief to affected consumers and it also requires the company to ensure that the abuses alleged in this case do not reoccur."
"Leasing can be a confusing proposition, but all leases should comply with our consumer protection laws, Herr said. We are working hard to make sure that these deals are fair and honest from start to finish. We are pleased that we could work out an amicable resolution with American Honda Finance."
The agreement requires American Honda Finance to:
mail "excessive wear and damage" charges to consumers within 10 business days of the vehicles return;
notify consumers of their right to challenge charges by hiring an independent, third-party appraiser and to honor written requests to have a vehicle examined by an appraiser hired by the consumer; and make restitution to consumers who filed complaints prior to the States suit against the company.
Also, as part of the agreement, Consumer Affairs will, for a one-year period, forward to American Honda Finance all complaints it receives against the company. American Honda Finance will then respond to those consumers within 30 days in an effort to resolve the complaint. If attempts to resolve any consumer complaint fails, American Honda Finance will then notify the consumer of his or her right to request that the matter be referred to Consumer Affairs' Alternate Dispute Resolution program for a resolution through binding arbitration.
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