- Following an investigation, the CFPB required Hyundai Capital America, the financing arm of the Korean auto manufacturer, to make payments totaling over $19 million as a penalty for allegedly providing and failing to correct inaccurate information to nationwide credit reporting companies between 2016 and 2020. The CFPB alleged that Hyundai Capital provided inaccurate information on more than 2.2 million accounts, in violation of the Fair Credit Reporting Act and the Consumer Financial Protection Act .
- The consent order alleges that Hyundai Capital failed to promptly update and correct incomplete or inaccurate information provided the Consumer Reporting Agencies as well as continuing to use it. This information included incorrect payment histories, improperly recorded disputed credit report items, erroneous dates of first delinquency, inaccurate payment ratings, and incorrect original loan amounts. In addition, Hyundai Capital allegedly lacked reasonable procedures for managing notifications of identity theft; used ineffective manual processes and systems containing known logic errors; and continued to use information for years after being alerted to errors.
- Under the terms of the consent order, Hyundai Capital will pay $13.2 million for redress to affected consumers, as well as submit a redress plan. The company will also pay a $6 million penalty and engage in a compliance monitoring program, including fulfilling reporting and recordkeeping requirements.