Not every consumer has a smooth experience with a lender, and borrowers can report these instances to the Consumer Finance Protection Bureau. Powersports Finance searched the CFPB consumer complaint database for powersports lenders and found that the top complaint concerned incorrect information on the credit report, followed by problems at the end of loan or lease and struggling to pay the loan.
It should be noted that compared to auto finance, the pool of complaints against powersports lenders is small. For example, from January 2018 to June 2019, Wells Fargo received 451 complaints about a vehicle loan or lease. During that same period, Harley Davidson Financial Services had 94 complaints.
Incorrect Information on the Credit Report
The top complaint among consumers was that the lender did not correctly update their credit reports. There were a total of 36 complaints about the issue filed from January 2018 to June 2019.
The bulk of the issue revolved around the account status of the borrower. Specifically, 19 consumers complained that they had paid off a loan but the lender still reported the account as active. Borrowers also complained that the lender would send notifications of a late payment when the consumers claim that they completed their monthly payment.
Of the complaints, only one was closed with monetary relief, while the remaining borrowers received an explanation from lenders. Only three borrowers reported that they did not receive a timely response from the lender.
Problems at the End of a Loan or Lease
Since January 2018, 17 consumers reported that they experienced issues at the end of a loan or lease. The reason for the problems vary but generally are concerned with borrowers having issues paying off the loan or selling the vehicle at the end of the contract.
Specifically, consumers claimed that the lender did not close their account after the completion of the loan. In one instance, a consumer was able to sell their powersports unit back to the dealer but claimed that the process was complicated by the lender, who did not close the account.
Of the 17 complaints, only two claimed the lender did not respond in a timely fashion. All of the complaints were closed with an explanation from the lender.
Struggling to Pay
The third highest complaint against powersports lenders was that consumers had difficulty paying the loan, usually due to unexpected circumstances such as losing a job. There was a total of 12 complaints about the issue filed from January 2018 to June 2019.
Some of the complaints were focused on the lender attempting to repossess the vehicle after the consumer missed multiple monthly payments. One borrower claimed in their complaint that they lost their job and was unable to make monthly payments for a time. They claim the lender called multiple times a day and eventually sought to repossess the vehicle.
Other borrowers complained that the interest rate was raised from the amount that they initially had agreed and their request to have the monthly payment reduced were rejected. There also were complaints that the loan balance remained after a vehicle had been repossessed and sold.
Only one borrower received monetary relief, while the rest of the borrowers received an explanation from the lender. All of the complaints were closed with a timely response from the lender.