Hyundai Capital America’s $19-Million Credit Reporting Catastrophe, Explained

08/02/2022

Share


Hyundai’s $19-Million Credit Reporting Catastrophe, Explained

Over the course of four years, Hyundai Capital America, a finance subsidiary of Hyundai Motor Group, knowingly reported false, damaging information on its customers to credit bureaus.

Most consumers will recognize the name Hyundai as the South Korea-based multinational automotive manufacturer employing a quarter-million people worldwide. However, millions of Americans will now know the brand as the furnisher who mutilated their credit reports. 

Hyundai Capital America, the captive finance partner of Hyundai Motor Company, was penalized $19 million by the Consumer Finance Protection Bureau on July 26 for repeatedly providing inaccurate information to nationwide credit reporting agencies. 

The CPFB, which found that Hyundai used manual, outdated systems to furnish consumer data, said the finance subsidiary failed to address its inaccurate information once it was identified between 2016 and 2020. In total, more than 8.7 million instances of inaccurate information were discovered on more than 2.2 million accounts during those four years. 

Hyundai must now rectify their erroneous reporting systems and pay more than $19 million, $13.2 million of which will go to consumers who were incorrectly reported as delinquent. A $6 million civil money penalty makes the fiasco the largest Fair Credit Reporting Act case against an auto servicer in CFPB history. 

​​“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,” CFPB Director Rohit Chopra said in a press release. “Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.”

What Exactly is Hyundai Capital America?

As the finance subsidiary of Hyundai Motor Group, Hyundai Capital America is one of the largest furnishers of automotive finance account information in the U.S. A furnisher is an entity that provides financial services, like a bank, but can also include debt collection agencies and other companies that process financial information. 

What Impact Does Hyundai’s Inaccurate Reporting Have?

With more than 1.7 million customers through its retail loans and leases and over $45 billion in assets, Hyundai Capital America’s credit reporting practices have a serious influence on millions of credit scores. After receiving an onslaught of consumer complaints, the CFPB launched an investigation and found Hyundai provided inaccurate credit report information about consumer payments on loans and leases that Hyundai purchased and serviced. 

In fact, Hyundai was found to have knowledge that it was providing inaccurate information, but continued to supply credit agencies with erroneous data anyway. Their actions sometimes led to lower credit scores and may have detrimental consumers’ ability to get approved for credit.

What Happens if My Credit Report Was Affected By Hyundai?

The good news is that Hyundai is paying big thanks to an order from the CFPB: The company must pay more than $13 million in compensation to current and former customers on top of a $6 million civil penalty. 

Hyundai must also take steps to correct all inaccurate account information it provided to credit reporting agencies, as well as address the issues with their systems and processes. 

The bad news is that Hyundai Capital America had four years to correct the issues with their reporting systems. In the meantime, millions of consumers need their credit reports corrected in order to rent, apply for loans, and more. 

I’m a Victim of Hyundai’s Inaccurate Reporting. How Can I Get My Credit Report Fixed?

Consumer Attorneys has an easy-to-follow guide and template for filing disputes on your credit report. However, given the volume of consumers who are also waiting on Hyundai Capital America to fix their information, you may not want to hold your breath. 

That’s where Consumer Attorneys comes in — we can expedite the dispute process by suing consumer reporting agencies and potentially win you damages in court.

Let us know if we can help, we offer a free consultation to evaluate your case.


Contact Us

+1 877-615-1725

info@consumerattorneys.com

Blog

Related Articles

Code

08/04/2022


How an Equifax Coding Blunder Led to Millions of Incorrect Credit Scores Issued to Lenders

Equifax Coding Snag Led to Millions of Erroneous Credit Scores Issued to Lenders

Surprised

07/25/2022


What the F(CRA) is a Permissible Purpose?

What the F(CRA) is a Permissible Purpose?

07/21/2022


How to Write a Dispute Letter to Credit Bureaus

How to Write a Dispute Letter to Credit Agencies

Medical debts compromise the credit reports of more than 23 million Americans

07/05/2022


In the News: Changes by Credit Reporting Bureaus Could Wipe Your Medical Debt From Your Credit Report

Up to 70% of medical debt will be removed from Americans' credit reports starting July 2022

When the SSA enters an individual into its Death Master File, a special code called a deceased indicator is used to mark the consumer as dead. The indicator is then included in a consumer’s credit report, where it appears simply as “deceased.”

12/10/2021


How to Correct a Deceased Indicator on Your Credit Report

Each year in the United States, between 7,000 and 14,000 people are surprised to learn that they are deceased according to the Social Security Administration.

A wedding ring.

10/27/2021


There is an error on my credit report. How can Consumer Attorneys help?

Thanks to Consumer Attorneys, a client was able to recover from multiple credit report errors.

A pile of money.

10/15/2021


Credit reporting errors strike victims when they least expect it

Consumer Attorneys has helped countless victims of credit reporting inaccuracies and is here for you.

An error showing up on a mobile phone.

08/07/2021


What are credit reporting errors?

Your credit report can contain some mistakes

A frustrated man seeing that his credit report is affected by a mixed file error.

06/19/2021


What is a mixed file?

A mixed file can cause your credit score to drop

A man looking at a chart on a tablet.

06/10/2021


What’s the difference between a FICO score and a credit score?

A FICO score can actually impact your credit score.

A thumbs up.

06/08/2021


What are considered good credit scores?

Credit scores have different rankings and meanings

A man that is upset about a credit reporting error.

05/28/2021


Real Stories About Credit Reporting Errors

Consumer Attorneys help clients sort out credit reporting issues

An image of a coronavirus.

05/24/2021


How has COVID-19 impacted credit reporting errors?

Amongst the many issues created by the pandemic, credit reporting mistakes are multiplying in the wake of new legislation and policy.

A picture of a clock, showing how long a dispute can take.

05/19/2021


How Long Credit Reporting Disputes Take

It may be quicker than you think with the right partner

A report with credit cards in front of it.

05/17/2021


What’s the difference between a credit score and a credit report?

You may use the terms "credit report" and "credit score" interchangeably, but they're very different.

Mixing or splitting a file is one of the most common errors made by credit bureaus, as well as one of the biggest headaches for consumers.

01/04/2022


Why Is Someone Else’s Information Listed on My Credit Report?

From renting an apartment to taking out personal or business loans, credit reports play an important role in the lives of consumers. They’re often a determining factor in whether a bank or other lender makes a decision in favor of the consumer.

The picture shows a sad man who looked at his credit report.

11/17/2021


Why the Credit Bureaus Confuse Information Between Consumers

The real problem with credit reports is the astounding number of errors!

02/01/2021


What Does “Mixed” Mean on a Credit Report?

Sometimes a consumer’s credit report can get dragged down by dead weight ... literally.

The picture shows a fraud thief who is trying to steal information. One's Social Security number, along with an address, is the most valuable piece of information identity thieves can get their hands on.

11/22/2021


Key Information Regarding Identity Theft

One's Social Security number, along with an address, is the most valuable piece of information identity thieves can get their hands on.

 image depicting symbols of identity theft

11/02/2021


What are the early indicators of identity theft?

Several telltale signs can give away the fact you've been a victim of identity theft early.

A police car.

10/22/2021


Why should you file a police report after identity theft?

Does it serve a purpose if you don’t know how to find the thief?

A home that's ready to be purchased.

10/13/2021


How to protect your identity during the homebuying process

Six ways to secure your identity when buying a home

A doctor in a hospital.

08/31/2021


How does medical identity theft occur?

What to look out for to make sure it doesn’t happen to you

A man stealing data.

08/10/2021


Distinguishing credit card fraud from identity theft

The two are not the same thing

A globe featuring the United States.

06/18/2021


The top 10 states with the most identity theft

Some states have more cases of identity theft than others

People dealing with identity theft.

05/28/2021


What is at risk when someone steals your identity?

The dangers of identity theft

A frustrated man who had his identity stolen.

05/26/2021


What is identity theft and how does it happen?

Identity theft is a criminal offense that damages victims’ finances and reputation

View all articles