SUBMIT A COMPLAINT

Honda Financial Services / late charges

Carmichael, CA, United States Review updated:

I leased a 2008 Honda and have made payments on time every month. Starting in January of 2009 they stopped sending me mail payments and started emailing me statements. I figured leases are always the same amount so I paid the bill regularly the same amoutn. Unbeknownst to me, they were charging me a $22 late fee each and every month for 18 months! I called when I discovered the problem and they refused to make any allowance that I had paid in good faith for 18 months never missing a payment and that they continued to charge the same $22 for each and every month after the month I was late. I ended up owning $393 in late charges plus an extra payment. I adjusted how I was to get my mail back to paper. They had sent me other mail items but never anything about these late charges. I think it's a total ripoff and am glad I found it before I went to turn the car in. I'll never lease another Honda or buy one for that matter. The car is great but the financial services arm are really gougers. Who protects the consumer from these people?

Sort by: UpDate | Rating

Comments

  • Th
      Nov 22, 2010

    Wait a second. You have to request not recieve paper stements. Why did you not look at the online statements they sent you to see you were paying late? All states allow a grace peroid, so you must have paid VERY late. They cannot by law charge a late fee if you are NOT late, so you DID pay late every month and it is Honda Financial Services fault? Every single negative post I see on here has one common demonitor-nobody is accountable for their actions. IF you paid late with ANY financial institution or company for 18 months you would be charged a late fee. Your home mortage or rent, credit cards, phone bill, insurance, ANYTHING!!! How is this their fault? Yes, you paid every month, but LATE. It would be different if you did it once, realized that you paid late and then called them and they were unwilling to work with you. But you did it 18 times. Be accountable for your actions.

    0 Votes
  • Sc
      Nov 23, 2010

    I don't know who you are but apparently you've never had to deal with Honda Financial Services. They misapply payments and screw up paperwork. They repo'd my car in August of 2009, I paid the past due payments and the repo fee and got my car back. Somehow, they forgot to invoice me for September 2009 or misapplied the repo fee and applied it towards the September payment. Depending on who I talk to I get conflicting stories, so I'm not sure what to make of it. Regardless, after the repo I have been careful to pay the account on time, maybe incurring a $5 late fee here and there but never late more than 10 days. I reviewed my account and noticed that when I added an extra $5 to my payment they were applying it towards interest and payments ONLY and the late fees would continue to be outstanding. I asked them to review my account and apply my payments correctly, needless to say they made a complete mess of that. Then I get a phone call saying my October 2010 payment is past due. Much to my dismay the representative explained that I was never invoiced for the September 2009 payment and that they would grant me an extension so the account would be current. How nice of them to grant me an extension after they failed to invoice me. There accounting practices are awful and I wouldn't trust anything they say. FYI, this is my second car financed with Honda and prior to my divorce I had no problems meeting my financial obligations. I fail to see how they forgot to invoice me, misapplied the repo fee and found the error over a year later. In my opinion they should write off the payment or fire the person who misapplied the payment or replace the accounting system that failed to generate the invoice. Imagine if you received a bill a year later that had 2009 charges due to someone elses error. I wonder what other tricks they have up their sleeves. I don't trust them and I will NEVER finance with them again.

    0 Votes
  • Th
      Nov 24, 2010

    Sounds like somebody is bitter about being repoed, it also sounds like you should not have gotten your car back. You said you applied an extra $5.00 here or there-did you look at the statement ever to see if you were paying the correct amount? Or an even more novel idea, consider paying it on time? Most extra $ you send to companies will be applied to your payments first and other outstaanding fees second. It also sounds like somebody did make an ERROR at Honda Finacial Services and they tried to correct the situation. Fire the person? WOW!!! All you people are on here looking for sympathy because of hard times, but you want to fire somebody for what sounds like a genuine mistake??? That sounds like a great decision, lets add more people to the unemployment lines!

    0 Votes
  • Sc
      Nov 24, 2010

    Bitter about being repo'd? Where did you get that from? That's what happens when you fall sixty days past due. Furthermore I live in a right to redeem state, so I'm thankful for my friends and family and my 401k contributions that allowed me to catch up on my payments. Of course I looked at my statements, that's why I was aware of the late fee and paid it along with my regular payment, the following month ON TIME! and they did not allocate the late fee correctly. I'm looking for no one's sympathy but someone made a serious mistake in 2009 and it took them a year to correct it. Instead of calling me to tell me that I was past due through no fault of my own, they should have called and said "we made an error on your account and we're working to fix it". That I can live with but to be totally blindsided is one thing. I'm grateful that my financial situation has improved and I have the extra cash on hand to bring the account current. And yes, the person who allocated the payment incorrectly in 2009 should be reprimanded and or retrained. At any rate, I wrote the customer service reps a thank you letter for assisting me because unlike yourself they realized an error was made and they have taken the steps to correct the problem. Happy Thanksgiving to whoever you are and hopefully you can find some peace in your life, instead of spewing hate and negativity on the complaint boards.

    0 Votes

Post your comment