Hyundai Financing Unit Settles CFPB Allegations for $19 Million

By Dean Seal

Hyundai Motor Co.'s automotive financing unit will pay the Consumer Financial Protection Bureau $19 million to resolve claims that for years it sent inaccurate account information to credit reporting companies, the consumer protection agency said Tuesday.

The CFPB alleges that between 2016 and 2020, Hyundai Capital America used systems for furnishing credit report information that were outdated and resulted in negative, inaccurate information being placed on consumers' credit reports.

The agency claims the Hyundai subsidiary reported false information in more than 8.7 million instances on more than 2.2 million customer accounts, including for some borrowers who were incorrectly reported as being delinquent on their loans and leases, the CFPB said.

Without admitting or denying the allegations, the subsidiary agreed to pay $13.2 million as redress to affected consumers who were inaccurately reported as being delinquent. Hyundai Capital America will also pay a $6 million fine, the agency said.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

July 26, 2022 12:38 ET (16:38 GMT)

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