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Captive finance company Hyundai Capital America has agreed to pay $13.2 million in restitution and a $6 million civil penalty to settle allegations it gave incorrect consumer information to credit reporting companies.
The Consumer Financial Protection Bureau, which announced the settlement Tuesday, said Hyundai provided wrong or incomplete information on more than 2.2 million consumer accounts 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 in a statement. “Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.”
The agency called the $19.2 million settlement its largest Fair Credit Reporting Act case against an auto finance servicer.
Hyundai admitted no wrongdoing in its July 22 stipulation to the CFPB’s July 25 consent order.
“To support our customers and allow us to focus on the future, we have entered into a settlement agreement with the CFPB. It is important to note that HCA is not admitting any fault or wrongdoing with respect to credit reporting practices covered by the investigation,” Hyundai Capital America said in a statement. “As part of HCA’s efforts to drive continuous improvement, we have already launched an end-to-end review of our current credit reporting practices. Most importantly, we remain fully committed to providing our customers with timely, accurate, high-quality service and care.”
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