OK, your Montero is 4 years old. The RRRR.jpg image looks like the surface
under the pealed area (darker blue) is actually shiny. If this is the case,
is this undersurface a glossy smooth different blue paint, or is it flat
ndercoat graey/black or bare plastic?

What I see looks like a top coat pealing off a badly prepared or unprepared
surface. It can also be caused by road salt. I would also wonder about the
condition of the body work under the flares.

Since this is a leased vehicle, and I assume you did not need to have the
flares refinished at any time, you have two options:

a) take it to a paint shop and get a professional opinion on the cause of
the pealing. If it is though to be because of bad preparation, you may have
a valid case for a warranty claim. A flare that peals paint due to
inadequate preparation is a manufacturing defect, and definitely IS under
warranty.

Otherwise, while you are at the paint shop, get a quote for the refinishing
of the flares.

Next, POLITELY consult with the dealer and/or bank what level of refinishing
would be acceptable in terms of normal wear and tear when the vehicle is
returned off lease. Presumably stone chips in the flare paint is considered
normal wear and tear.

What about rust under the flares caused by road salt? That's surely normal
wear and tear. Get a written definition of EXACTLY what "normal wear and
tear" is and how it is evaluated at lease end.

Point is you could easily get a $700+ quote from a paint shop, or do it
yourself with some sanding, correct undercoats and some colour in aerosol
cans for maybe $100 or so.

SD