- The Consumer Financial Protection Bureau found that Hyundai reported inaccurate information to credit reporting agencies for several years.
- These errors negatively impacted over 2.2 million customers.
Hyundai reported inaccurate information to U.S. credit reporting bureaus, harming millions of consumer credit reports.
In the United States, credit reports are a big deal. Your credit report and credit score can determine what kind of financial opportunities you qualify for, and negative marks can significantly impact your life in many ways.
Hyundai reported inaccurate information to credit bureaus for several years, negatively impacting over 2 million customers. Find out what went wrong and what the company is doing to resolve the issue.
According to an investigation by the Consumer Financial Protection Bureau, Hyundai Capital America (Hyundai) used outdated systems, processes, and procedures to furnish credit reporting information from 2016 to 2020.
This led to inaccurate information being reported to U.S. credit bureaus, and consumer credit reports were negatively impacted. The agency found that the car company also failed to fix errors once they were identified.
The CFPB found that Hyundai reported inaccurate information more than 8.7 million times, and that these mistakes impacted more than 2.2 million consumer accounts.
Some of the inaccuracies led to lower credit scores and negatively impacted customers' access to credit. Because of its mistakes, Hyundai will be penalized.
Hyundai must pay $13.2 million to current and former customers
Hyundai will pay $13.2 million to current and former impacted customers.
Customers with inaccurate reporting that said they were 30 or more days past due on loans or leases are eligible for compensation for the harm that was caused.
Additionally, the brand will be required to pay a $6 million fine towards a CFPB victim relief fund.
Hyundai will also be required to fix all inaccuracies and errors and will need to outline policies and procedures regarding the accuracy of the information it furnishes to credit reporting companies.
The CFPB notes that this is the largest Fair Credit Reporting Act case against an auto servicer.
Consumers should check their credit reports regularly
This news story is a good reminder of the importance of reviewing credit reports regularly.
Mistakes happen, and inaccuracies can lead to negative consequences. You don't want to be unfairly judged by a potential creditor due to an error on your report.
Consumers can access their credit reports at no cost through all three credit bureaus at AnnualCreditReport.com.
Usually, consumers can access a report from each bureau once every twelve months.
However, through the end of 2022, consumers can review their reports weekly. Now is a good time to review your credit report.
Be sure to report errors
If you notice an error on your credit report, it's important to dispute it directly with the credit bureau. Be sure to include supporting documentation to show why the report is inaccurate.
It's also a good idea to reach out to the company that reported the inaccurate information and provide a copy of your dispute.
If the credit bureau agrees with your dispute, it will fix the error, and your credit report will be updated. You'll be sent a copy of your new credit report.
If the bureau doesn't agree, no changes will be made to your report. You can send a letter stating that you disagree with the outcome.
When this happens, it's a good idea also to submit a complaint to the CFPB. Complaints help the agency identify and investigate wrongdoing.
Staying on top of essential finance matters and reviewing your credit report is a must.
If you're looking for ways to improve your financial situation or want to learn more about credit, review our personal finance resources.
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