Captive finance firm Hyundai Capital America has agreed to pay $13.2 million in restitution and a $6 million civil penalty to settle allegations that it supplied incorrect shopper data to credit score reporting corporations.
The Shopper Monetary Safety Bureau, which introduced the settlement Tuesday, stated Hyundai supplied incorrect or incomplete data on greater than 2.2 million shopper accounts between 2016 and 2020.
“Hyundai unlawfully tarnished the credit score reviews of tens of millions of debtors, together with by falsely reporting them to credit score reporting corporations as delinquent on their loans and leases,” CFPB Director Rohit Chopra stated in a press release. “Mortgage servicers have to be full and correct when offering data that impacts a borrower’s credit score report.”
The company referred to as the $19.2 million settlement its largest Truthful Credit score Reporting Act case towards an auto finance supervisor.
Hyundai didn’t admit wrongdoing in its July 22 stipulation to the CFPB’s July 25 consent order.
“To assist our purchasers and permit us to deal with the long run, we have now entered right into a settlement settlement with the CFPB. It is very important notice that HCA doesn’t admit any faults or wrongdoing with respect to the credit score reporting practices coated by the investigation.” Hyundai Capital America stated in a press release, “As a part of HCA’s efforts to drive steady enchancment, we have now already launched a complete evaluation of our present credit score reporting practices. Most significantly, we stay totally dedicated to offering our prospects with well timed, correct, high-quality service and care.”