The state of New Jersey is suing a California-based auto leasing and financing unit of American Honda Motor Co., alleging the company overcharged consumers for "excessive wear and damage" on returned leased vehicles since 1995.
The two-count complaint, filed in Essex County Superior Court on July 12, alleges that American Honda Finance Corp. violated the state's Consumer Protection Leasing Act and the Consumer Fraud Act in connection with its lease agreements with consumers, according to a copy of the lawsuit made available Monday.
The suit alleges that the company:
* collected and attempted to collect inflated excessive wear and damage charges;
* failed to return security deposits in a timely manner;
* failed to provide an independent estimate of needed repairs on lease returns;
* failed to provide an invoice for damage to leased vehicles;
* and failed to disclose the consumers' right to an independent estimate of those repairs.
In one case cited, the suit alleges a consumer complained that he returned a 1997 Honda at the end of his two-year lease agreement with the company and was billed $1,030 over a month later, with no notification of his rights to dispute the charges and to hire a third-party appraiser.
Kurt Antonius, spokesman for American Honda Finance, said Monday the company had not received a copy of the complaint and added that the company "follows all the appropriate federal and state rules and regulations regarding leasing."
New Jersey is seeking civil penalties of as much as $7,500 for each violation of the state's consumer fraud law.
It also seeks an order enjoining the defendant from repeated violations of the CPLA and Consumer Fraud Act, attorneys fees and costs.
American Honda Motor is a U.S. subsidiary of Japan's Honda Motor Co.