CFPB cites Hyundai Capital for violating credit reports

The Consumer Financial Protection Bureau (CFPB) cited Hyundai Capital America for providing consumer reporting agencies (CRAs) with incorrect consumer credit information for years, even after learning of the discrepancies.

The errors may have negatively affected consumers’ access to credit, the CFPB said, and penalized the auto finance company $19 million.

Hyundai Capital America has acted as seller and manager of billions of asset-backed securities (ABS) backed by retail automotive installment loans. Auto ABS Notes were sold to investors through various platforms, including Hyundai Auto Lease Securitization Trusts and Hyundai Auto Receivables.

In a consent order issued earlier this week, the CFPB board said Hyundai Capital America had failed to update and correct information provided to CRAs.

Hyundai also provided information to CRAs about severely delinquent or charged off accounts, but did not provide dates of first default, the CFPB said.

Whenever Hyundai found inaccurate information, Hyundai also failed to modify or remove the information consumers disputed.

The CFPB also challenged some of Hyundai Capital’s processes for handling consumer information, particularly with respect to cases of identity theft. Hyundai Capital did not have reasonable procedures to respond to concerns from credit rating agencies that previously provided information was the result of identity theft and should have been excluded from their credit reports.

Additionally, Hyundai has not established or implemented reasonable written policies to ensure that all information it submits to an CRA is accurate, the CFPB said.

The CFPB noted that Hyundai accepted its consent order without admitting or denying any of the findings.

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