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Consumer Protection: Regulators fine Hyundai $19million for infractions in credit reporting

Photo: ThePKInfo

*Officials of the Consumer Financial Protection Bureau have revealed the automobile manufacturing company’s ‘illegal’ actions lowered consumers’ credit scores

*Say $13 million of the fine will go to the affected consumers

Isola Moses | ConsumerConnect

For apparent failure to take proper measures to address inaccurate information in consumer credit reportage, once the error was identified, the US Consumer Financial Protection Bureau (CFPB) has fined Hyundai $19 million.

ConsumerConnect gathered the Bureau declared the global automobile manufacturing giant had run afoul of what the consumer protection regulatory agency described as “the largest ever Fair Credit Reporting Act case against an auto servicer.”

Photo: Consumerfinance.gov

The Consumer Financial Protection Bureau is an agency of the United States Government responsible for consumer protection in the financial sector of the American country’s economy.

The CFPB also disclosed the company’s infractions illegally impacted 2.2 million consumer’ accounts, which later negatively affected their access to credit.

The regulators as well alleged that Hyundai’s use of outdated methods and systems led to repeatedly providing incorrect information to credit reporting companies about consumer payments on loans and leases that it purchased and serviced between 2016 and 2020.

This resulted in some consumers being flagged for being delinquent on their loans, which lowered their credit scores and negatively affected their access to credit, report said.

The market regulators further noted that the agency is fining the company $19 million because it failed to take proper measures to address inaccurate information once the error was identified.

Tarnished consumer credit reports

Besides paying a fine, the CFPB’s order requires Hyundai to do whatever is necessary to prevent this situation from happening to consumers again.

Officials as well said $13 million of the fined amount would go to the affected consumers who were inaccurately reported as delinquent on their installment plan or lease for 30 or more days.

CFPB Director Rohit Chopra said: “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.

“Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.”

ConsumerAffairs contacted Hyundai for comment, but the company did not immediately respond.

If any consumer is having an issue with their auto loan, their credit report, or another consumer financial product or service, the agency urged such affected persons to submit a complaint by filing online or calling (855) 411-CFPB (2372).

Employees who believe their company has violated the country’s federal consumer financial laws are also encouraged to send information about what they know to: whistleblower@cfpb.gov.

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