Federal regulators on Tuesday ordered
Hyundai Motor Co.
’s North American finance arm to pay a $19 million fine for providing allegedly inaccurate information to credit-reporting companies about more than 2.2 million customer accounts.
The Consumer Financial Protection Bureau accused Hyundai Capital America of using manual and outdated systems to furnish consumer credit information between 2016 and 2020, causing widespread inaccuracies that reported delinquencies and other negative information on consumers’ credit reports.
Hyundai agreed to a consent order with the federal watchdog without admitting or denying wrongdoing. It will pay affected current and former customers $13.2 million, plus a $6 million civil fine to the CFPB.
A Hyundai representative said that the company launched a review of its current credit reporting practices and remains committed to providing customers with good service.
The CFPB said it had received many consumer complaints alleging that Hyundai provided inaccurate account information to credit-reporting companies. The agency accused the South Korean auto maker of knowing about the errors and failing to take reasonable measures to address the issues.
The CFPB under director
Rohit Chopra
has prioritized the U.S. auto loan industry and the broader credit-reporting system, which plays a huge role in determining who gets credit and who doesn’t. Consumers have little control over what is added to their credit reports, which rely on information submitted by lenders, collections firms and others.
Hyundai used manual procedures to service loans, including to calculate a consumer’s amount past due, late fees, and charge-off amounts, the CFPB said. The agency said the company reported inaccurate information more than 8.7 million times across more than 2.2 million accounts.
Hyundai agreed to establish a board that will monitor its compliance with the order for five years, according to a copy of the order released Tuesday. The company services about 1.7 million customers through its retail loans and leases.
—Andrew Ackerman contributed to this article.
Write to Ryan Felton at ryan.felton@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Federal regulators on Tuesday ordered
Hyundai Motor Co.
’s North American finance arm to pay a $19 million fine for providing allegedly inaccurate information to credit-reporting companies about more than 2.2 million customer accounts.
The Consumer Financial Protection Bureau accused Hyundai Capital America of using manual and outdated systems to furnish consumer credit information between 2016 and 2020, causing widespread inaccuracies that reported delinquencies and other negative information on consumers’ credit reports.
Hyundai agreed to a consent order with the federal watchdog without admitting or denying wrongdoing. It will pay affected current and former customers $13.2 million, plus a $6 million civil fine to the CFPB.
A Hyundai representative said that the company launched a review of its current credit reporting practices and remains committed to providing customers with good service.
The CFPB said it had received many consumer complaints alleging that Hyundai provided inaccurate account information to credit-reporting companies. The agency accused the South Korean auto maker of knowing about the errors and failing to take reasonable measures to address the issues.
The CFPB under director
Rohit Chopra
has prioritized the U.S. auto loan industry and the broader credit-reporting system, which plays a huge role in determining who gets credit and who doesn’t. Consumers have little control over what is added to their credit reports, which rely on information submitted by lenders, collections firms and others.
Hyundai used manual procedures to service loans, including to calculate a consumer’s amount past due, late fees, and charge-off amounts, the CFPB said. The agency said the company reported inaccurate information more than 8.7 million times across more than 2.2 million accounts.
Hyundai agreed to establish a board that will monitor its compliance with the order for five years, according to a copy of the order released Tuesday. The company services about 1.7 million customers through its retail loans and leases.
—Andrew Ackerman contributed to this article.
Write to Ryan Felton at ryan.felton@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8