Hyundai Ordered to Pay $19 Million for Innacurate and Damaging Credit Reporting

The automaker's financing company repeatedly reported inaccurate information.

The Consumer Financial Protection Bureau (CFPB) has ordered Hyundai Capital America, the auto manufacturer's financing division, to pay more than $19 million in fines and restitution for inaccurate and damaging credit reporting. The federal agency says the financing company furnished negative, inaccurate information on more than 2.2 million accounts and failed to address the issue once it was identified.

Key Takeaways

  • The CFPB has ordered Hyundai to pay more than $19 million in consumer restitution and federal fines to compensate for its inaccurate credit reporting.
  • The federal agency says that Hyundai Capital America damaged millions of consumers' credit files by furnishing negative and inaccurate information.
  • The case is the largest the CFPB has taken against an auto servicer for violating the Fair Credit Reporting Act (FCRA).

Hyundia in Hot Water for Faulty Credit Reporting

Hyundai Capital America furnished inaccurate information to the national credit bureaus in more than 8.7 million instances across more than 2.2 million consumer accounts, says the CFPB. These widespread inaccuracies, which were identified but not addressed between 2016 and 2020, violated FCRA and were a result of manual and outdated systems, processes, and procedures.

More specifically, Hyundai violated federal law by failing to:

  • Report accurate and complete lease and loan information.
  • Provide the date of first delinquency information when required.
  • Modify or delete information when required.
  • Have reasonable identity theft procedures in place.
  • Have reasonable accuracy and integrity policies and procedures in place.

In its decision against Hyundai, the federal agency has ordered the automaker to take steps to address the inaccurate information and prevent future violations, pay $13.2 million to compensate the affected consumers, and also pay a $6 million civil money penalty, which goes into the CFPB's civil penalty fund. The fund provides compensation for other consumers who are victims of violations of federal consumer protection laws.

You can learn more about the CFPB's enforcement action against Hyundai on the agency's website.

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  1. Consumer Financial Protection Bureau. "CFPB Orders Hyundai to Pay $19 Million for Widespread Credit Reporting Failures."

  2. Consumer Financial Protection Burea. "Civil Penalty Fund."