Skip to main content

Popular car brand fined $19.2 million for ruining credit scores

Image
By

The U.S. Consumer Financial Protection Bureau (CFPB) has fined Hyundai Capital America $19.2 million for giving credit reporting companies incorrect information that lowered customer’s credit scores, the organization announced.

The CFPB ordered that Hyundai Capital pay $13.2 million to affected customers and $6 million in a civil money penalty for failing to take proper measures to fix the problem when identified between 2016 and 2020.

Hyundai Capital America is the U.S. financial subsidiary for global automaker Hyundai Motor Group based in Seoul. Hyundai Capital America purchases and services contracts and leases originated from 1,600 Hyundai, Kia, and Genesis dealerships. Hyundai Capital America services 1.7 million U.S. drivers.

The CFPB said that Hyundai Capital provided inaccurate reports “8.7 million times across 2.2 million accounts from January 2016 to March 2020.”

“Hyundai illegally tarnished credit reports for millions of borrowers, including by falsely reporting them to credit reporting companies as being delinquent on their loans and leases,” said CFPB Director Rohit Chopra. “Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.”

According to the CFPB, this is their largest Fair Credit Reporting Act case against an auto servicer.

The CFPB said they received many complaints from consumers that Hyundai Capital inaccurately reported account information to credit reporting companies. Upon further investigation, CFPB discovered that the company was repeatedly providing inaccurate credit report information about customer payments on loans and leases that they purchased and services. CFPB said that Hyundai Capital identified many of the issues causing these inaccuracies in its internal audits but took years to address the problem.

Hyundai Capital said they will pay the fines and launch an “end-to-end review” of their credit reporting.

from Boston News, Weather, Sports | WHDH 7News
Source: https://ift.tt/ceQuYzi
Labels:

Comments

Post a Comment

Popular posts from this blog

Virginia family gets keys to Habitat for Humanity’s first 3D-printed home in the US

By
(CNN) — One Virginia family received the keys to their new  3D-printed home  in time for Christmas. The home is Habitat for Humanity’s first 3D-printed home in the nation,  according to a Habitat news release. Janet V. Green, CEO of Habitat for Humanity Peninsula and Greater Williamsburg, told CNN it partnered with Alquist, a 3D printing company, earlier this year to begin the process. The 1,200-square-foot home has three bedrooms, two full baths and was built from concrete. The technology allowed the home to be built in just 12 hours, which saves about four weeks of construction time for a typical home. April Stringfield purchased the home through the  Habitat Homebuyer Program . She will move in with her 13-year-old son just in time for the holidays. “My son and I are so thankful,” Stringfield said in a  live feed streamed on Habitat’s Facebook  page. “I always wanted to be a homeowner. It’s like a dream come true.” To purchase the home, Stringfield logged hundreds of hours of
Post a Comment
Recent News

Lawsuit: High school football player says coaches forced him to eat pizza as punishment, violating religious beliefs

By
CANTON, Ohio (AP) — An Ohio high school football player who says coaches forced him to eat a pizza covered with pepperoni grease in violation of his religious beliefs is suing his former district and the ousted coaches. The former Canton McKinley High School athlete and his parents filed a federal civil rights suit this week seeking millions of dollars in damages and alleging violations of his religious freedom and constitutional rights. The athlete says in the lawsuit that coaches were notified he doesn’t eat pork or pork residue as a member of the Hebrew Israelite religious faith, but that they ordered him to eat the pizza as punishment for missing an offseason workout — and indicated his spot on the team was at risk if he didn’t. The coaches say the player chose to remove pepperoni and eat the pizza rather than an alternative food. They weren’t aware it violated his religious beliefs, according to a  defamation case they filed  previously against the teen’s father, his attorney a
Post a Comment
Recent News

Bergeron, Pastrnak and Bruins finish off Capitals in 5 games

By
WASHINGTON (AP) — Patrice Bergeron and David Pastrnak dazzled on offense, Tuukka Rask was rock solid in net and the Boston Bruins are moving on to the second round of the playoffs. Bergeron scored twice at crucial times after Pastrnak’s  highlight-reel  goal, Rask made 40 saves and the Bruins eliminated the Washington Capitals in five games with a 3-1 victory Sunday night. Bergeron delivered the dagger with 7:35 left to set up a second-round showdown against either the Pittsburgh Penguins or New York Islanders. Chants of “TUUKK!” emanated from a large group of black and gold-clad Boston fans who were part of the limited-capacity sellout crowd of 5,333. Those were occasionally interrupted by “We want the Cup!” — the trophy the Bruins last won a decade ago after a 39-year title drought. They’re 12 wins away, thanks to their best players dominating in Game 5. Pastrnak made it look easy putting the puck behind his back and through his legs, assisted on Bergeron’s first goal and was par
Post a Comment
Recent News