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Plaintiffs have secured a $1.9 million payment and the forgiveness of $19.8 million in debt in a class action settlement over allegations that Honda failed to properly inform car owners of their rights in repossession.
Further, the car maker allegedly hiked up the debt owed on the reposed cars when the vehicles went to auction.
In addition to the payments and debt elimination, Honda has also agreed to inform three major credit reporting entities that negative reports from debt related to repossessed Honda vehicles should be removed.
“The agreement provides substantial benefits to the class of Massachusetts borrowers whose cars were repossessed by American Honda Finance Corp.,” noted the motion for approval of the Honda Repo class action settlement. “The agreement negotiated by the parties is fair, adequate and reasonable.”
The lead plaintiff Rachel Williams alleged that she was subject to a Honda repo. The car maker reportedly sold her car at auction for $8,900 but failed to properly disclose to her why there was a difference between what she owed and the fair market value of the vehicle.
The notice purportedly included information about the deficiency balance obtained by subtracting what Honda got at auction for the car from the outstanding loan balance; however, the cost of repossessing and selling the car was factored in.
The Honda repo class action lawsuit contended that the car maker’s deficiency notices sent to consumers when their vehicles were sold at auction did not comply with Massachusetts state law.
Class Members in the Honda repo class action lawsuit include those in Massachusetts who had their vehicle repoed by Honda from April 2010 until July 2018.
Class Members must have taken out their vehicle loan through Honda and had their vehicle repossessed by the car company.
Additionally, the debt must not have been discharged in bankruptcy and Honda must not have obtained a deficiency judgment against the person who took out the car loan.
According to the proposed settlement notice, 4,183 Class Members have been identified using Honda’s records.
U.S. District Court Judge Leo Y. Sorokin granted preliminary approval of the Honda repo class action settlement.
If the settlement receives final approval, Class Members will not need to take any action to take part – they will automatically be entered into the Honda repo class action lawsuit unless they opt out or object to the terms of the agreement.
Honda does not admit any liability under the terms of the class action settlement, but says it entered into the agreement to avoid the uncertainty of litigation.
The plaintiff’s attorneys have requested $950,000 in costs and fees in the Honda repo class action settlement.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
Williams and the proposed Class are represented by Elizabeth Ryan and John Roddy of Bailey & Glasser LLP and Steven R. Striffler of the Law Office of Steven R. Striffler.
The Honda Repo Class Action Lawsuit is Williams v. American Honda Finance Corporation, Case No. 1:14-cv-12859, in the U.S. District Court for the District of Massachusetts.
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16 thoughts onHonda Repo Class Action Settlement Valued at $21.7M
Honda Financial Services has been giving me a hard time for weeks, they not only illegally tried to repo my car, during an active Covid19 executive order, but have padded my account with additional fees of $800 since I called for my payoff last Wednesday from the bank, I was trying to refinance it at and got a payoff of $5,413.00 by Cedric, he was sarcastic and rude. Cedric also refused to email or mail me the payoff letter, claiming again he could not as my car is in repo status, which it is not because they cannot do so per the executive order and law. Both my mother and the banker were there and listening in on the conversation. I was not able to refinance it because my payment on the car note was past due, so my father then decided to loan me the cash to pay it off, he asked me to call to get the payoff. I then called again and spoke with another female agent who would not repeat her name and was very rude, so I could write it down, she refused to give me the payoff at all. I then contacted the Honda Financial Services Corporate office in Torrance, CA, and spoke with Carolyn the receptionist, she refused to put me through to the executive office and said she would have a manager contact me within 48 hours and she was rude and disrespectful as well. The manager, Whitney called me late in the day on 4/12/2023, she was just as rude as the other employees and said my payoff was $6,233.06 but said in an intimidating manner “But it can go up”. They have all been threatening and intimidating me continually I am a government employee, and this is harassment!! She ended up hanging up on me and refused to acknowledge or follow the executive order preventing repos. She also could not explain why my balance had increased by $800 since last Wednesday and kept trying to get off the phone. I then got a text from Car Guru who is purchasing my car from me and they will pay off Honda Financial Services at that time I am everyone I know who has been loyal and bought their cars since the 1960s will NEVER purchase or drive one of their vehicles again and be done with them, after I sue them for all the harassment, breaking the laws, etc. So they requested a 10-day lean holders payoff letter, so again I called Honda Financial AGAIN and asked for this and spoke with Jasmine who was beyond rude, she was flat-out abusive, she continued to be disrespectful the entire conversation, talking over me and raising her voice, refusing to give me my payoff letter, saying my car is in repo status when it is NOT and they CANNOT REPO MY CAR AS THERE IS A COVID19 EXECUTIVE ORDER IN EFFECT PREVENTING IT!!!!! I told her if she was not going to give me the payoff letter, I would have to reach out to the CFPB, IL Attorney General, and my lawyer again, she said “Well if you have a lawyer and are going to sue us just have them give us a call!” Like a smart mouth, then kept being very verbally abusive and refused to give me my payoff letter. She then said it looked like today only $5,909.87! So, I have been given three different payoff amounts in the last week alone!!! I asked her how my balance increased by $800 from last Wednesday until today, one week ago and she said, “Because you are being charged interest daily on the note, the longer you don’t pay the more you are going to owe!!” I got off the call and called the corporate office in Torrance, CA again and talked to Carolyn the receptionist and she was extremely rude again and playing gatekeeper and refused to get anyone to help me after telling her all that had just occurred, then she hung up on me, so I called back, and she hung up on me again. So then I called the California Attorney General’s office to let them know I had already filed a complaint with them too and wanted to know where all stood and they mentioned I could also go up to the courthouse and file a small claim against Honda Financial Services, and I can also go to the police station and file a harassment charge and no contact order and will if they do not give you and I the payoff letter, provide it to the company Car Gurus who are purchasing it and pay my note off and send all paid off paperwork and title RIGHT AWAY!!!!! I want copies of all sent to Car Gurus, myself, and your office, so we have proof all is done. This is going on with many people and requests the IL Attorney General and FTC file a large lawsuit!!!! You can get a lot more money out of them than I can, and you can also shut them down permanently, they are breaking the FDCPA, and state laws and committing debt collection harassment!!!! I have witnesses to all conversations, and I want the fraudulent $800 removed from my bill and the illegal repo status removed from my account and credit report per my attorney I can and will sue them for not doing so on top of the government doing so and I can gather up a whole lot of people who would be happy to join in who are very upset with them for the same reasons!!!! Everyone having trouble with Honda Financial Services file a complaint with your State Attorney General’s office the CFPB and the FTC!!!! Then tell all you know not to EVER buy a Honda again and avoid driving their vehicles!! I am selling my car and going with another vehicle brand and will NEVER buy a Honda again!!! Let’s get a nationwide class action going to put these crooks out of business once and for all!!!
I would be in! Car repossessed and I tried to pay on 3 different occasions on 3 different accounts and was in contact w/Honda and told that it wasn’t saying insufficient funds but denying the payment and my bank confirmed the funds were available. Until I spoke to a very rude 3th person and she told me it was insufficient funds and that’s why my car was repossessed than refuse to let me speak and explain I spoke to many others and banks and also could prove the funds were there! She cut me off and in so many words said “not our problem”. I was literally moving to Florida from Nj the morning they took it and now I’m in an un no city w/ kids and no way to work or get my kids in school. I’ve had a car loan since 18 and now 46 and I never did not pay my loans or have a repossession in all the years. I can’t get a car loan now because I receive social security disability and I traded my Honda CRV that was almost paid off for the civic. ( large down payment) now I’m left with nothing!