Vehicle loan or lease -- Problems at the end of the loan or lease -- Complaint #6630074

Complaint Overview

Complaint ID: 6630074

Company: Westlake Services, LLC

Product: Vehicle loan or lease

Sub-Product: Lease

Issue: Problems at the end of the loan or lease

Sub-Issue: Termination fees or other problem when ending the lease early

State: New Mexico

ZIP Code: 87144

Date Received: 2023-02-28T12:00:00-05:00

Date Sent to Company: 2023-02-28T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

I signed a lease for a XXXX XXXX XXXX through XXXX XXXX XXXX XXXX. The contract was handled through CULA, Credit Union Leasing of America. To obtain a lower payment on the Lease I traded in a vehicle that was given credit for it. My total down payment was {$7900.00} on the price. I leased the vehicle from XX/XX/XXXX, until it was in an accident on XX/XX/XXXX. I have a police report that I was not at fault in the accident. I called the credit union that I currently pay my lease to, which is now XXXX XXXX because the account was transferred to them, to let them know what happened. The representative said I had a payout balance of {$34000.00} that was owed on the vehicle but to see what the insurance adjuster said first. I took it to an adjuster that estimated initially {$21000.00} in damage. After the adjuster took the vehicle for a closer inspection it was changed to over {$31000.00} and deemed a total loss. The insurance company said the payout was {$42000.00} ( roughly ) so that I would not need GAP insurance to pay a difference on the vehicle. All companies, such as XXXX, XXXX, XXXX, etc., take the payout balance and the equity, if any, returns to the consumer. On a call with XXXX to Cula to arrange for payment CULA states they keep all monies for the vehicle, including the overage from any down payment. The representative, XXXX XXXX, said it is in the contract and that is what is going to happen. He was rude and the XXXX representative, who had arranged the call as a three-way, apologized at the call 's conclusion for the way the representative explained things. I e-mailed CULA again, hoping they would release the funds, explaining that this practice is not common and unfair to the consumer, but was told to refer to the contract. In fact, the representative ( XXXX ) highlighted a section of the contract that says if the vehicle is a total loss the lease terminates. While it says the company is deemed as a loss payee is does not say they claim all rights to any equity. I explained I had no right to purchase the vehicle, through no fault of my own, and I should not lose the opportunity to purchase the vehicle or claim any equity. Again, other company 's do not claim the equity but only take the payoff amount. CULA refuses to discuss it and the contract is not clear to the average consumer nor is it a fair business practice. CULA claims to be the sole owner, yet CULA signed a power of attorney to allow me to be added as an owner, in order to register the vehicle in XXXX XXXX XXXX XXXX views CULA and I as co-owners of the vehicle as seen on the registration that is attached.

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Disclaimer

This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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