They seem to be legally squared away. The contract states that if you don’t purchase it, you have to pay the turn in fee, so I doubt a lawsuit would go very far. They could call it the “don’t-have-to-pay-this” fee if they wanted, the contract is what defines then terms of repayment.
With that said, it’s definitely misleading in what it is called and a faux pas on their part. I don’t know that there’s much legally exposure, but it’s still a bad move from a customer perception stand point.
Goes to show that just because they aren’t technically wrong, it doesn’t mean they’re right.
mllcb42 is on point. Just had a lengthy conversation with HFS on my BBB complaint. Their answer is that item 3 of the contract that states the “Turn-in Fee (if I do not purchase the vehicle)” applies, as the vehicle was not titled to me, nor paid for with my funds. They were unwilling to budge, even when told that the fee name is deceptive, that the contract is unclear on how third party purchases are handled, and that they should not care where the funds come from. They said they are correct from a legal perspective, and that is all that matters.
I asked to escalate to the next level to provide my feedback.
For those that were successful in going the BBB complaint route, kudos to you, as it did not work for me.
Same contract says only the leasee can intiate the purchase option. I think of it as a service to them if you find a third party buyer. It is a matter of convenience to issue the title to the third party at your direction. I made it very clear I would take them to small claims court as well. The burden is on them to make the contract clear. It clearly isn’t. Good luck.
Isn’t it though? It pretty clearly says “if you don’t purchase it, you pay this fee”. You didn’t purchase it, therefore, you pay the fee. Legally, I’m not sure where the leg to stand on is here.
Not saying I like it or I think it’s right, just that it seems tough to challenge legally.
3 calls total and about 2 hours on hold from beginning to end. I just put the phone on speaker and did other things while they told me how important my call was to them. Anyway, definitely worth it!
Started with HFS customer service. They flat out said no. I filed a complaint with the BBB. They contacted me a few weeks later and agreed to send me a refund although they stated they didn’t have to. Had to follow up twice, which means waiting on hold for around an hour each time. Eventually the check arrived.
HFS website specifically states there is no purchase option fee and the disposition fee defined in the contract is associated with turning the lease back in to a Honda dealer.
