American Honda Finance Corp. - trouble using checks to make lease payments

# 13 for May 26, 2002

Complaints.com received the following consumer message on May 25, 2002:

From: Nelson F. BUMP [Email User] RE: American Honda Finance Corp. - trouble using checks to make lease payments

American Honda Finance Corp, PO Box 1027, Alpharetta, GA 30009-1027

I have leased cars since 1988 from GMAC, FMCC and Infinity (Nissan) in both Canada and the U.S. I have never had a check refused (2nd and 3rd party) in all that time until May 2002. I sent two checks for my May lease payment, one I originated for $366 and a second check from an Ensign (works for me in the Naval Sea Cadet Corps). They returned the $55 check and two days later charged me $2.75 for a penalty.

They insisted they would not accept any check unless it was made out to AHFC, even if the check was properly endorsed. Both checks were from the same credit union (Navy Federal Credit Union, the world's largest) in Jacksonville, FL. I live 200 miles south of JAX and my ENS lives 225 miles further south in Naples, FL. I have belonged to NFCU for over 30 years.

I am a retired MCPO with 38+ years of service, and for the last 7 years the Senior Escort Officer for Afloat Training FL/GA. I will take 100 cadets on 5-6 ships for 7/8 weeks between Jun-Aug. Their cost is $7.00 for messing (food)/day/cadet. I front the money and I will receive about 20 checks. I explained this to AHFC and their legal department said: "we prefer direct payment to AHFC".

Someone in this finance department decided to make their own policy. This is a foreign company making billions of dollars in the U.S. They arrogantly ignore the endorsement provisions of our Federal and State laws concerning our ability to endorse checks. This is another sign of squeezing the little guy and making him do AHFC work (unpaid of course). I'm drawing my own line in the sand.

I want AHFC to become a partner with the average citizen, not the greedy grasping money grabbers they seem to be.

Nelson F. Bump,

Email User