The Consumer Financial Protection Bureau (CFPB) has penalized Hyundai Capital America (Hyundai) $19 million, alleging Hyundai repeatedly provided inaccurate information to nationwide credit reporting companies.
Additionally, Hyundai failed to take proper measures to address inaccurate information once it was identified between 2016 and 2020.
“Hyundai illegally tarnished credit reports for millions of borrowers, including by falsely reporting them to credit reporting companies as being delinquent on their loans and leases,” CFPB Director Rohit Chopra said. “Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.”
Hyundai used manual and outdated systems, processes, and procedures while furnishing credit reporting information, resulting in widespread inaccuracies and negative inaccurate information being placed on consumers’ credit reports.
The CFPB is requiring Hyundai to pay $13.2 million in compensation to current and former customers, pay a $6 million fine in the form of a civil money penalty to the CFPB to be paid towards the victims relief fund, and take steps to correct all inaccurate account information.
The CFPB determined Hyundai furnished inaccurate information in more than 8.7 million instances on more than 2.2 million consumer accounts. Hyundai presently services 1.7 million consumers via its retail loans and leases and possesses more than $45 billion of reported assets as of last year.