US Financial Authorities Order Hyundai Capital to Pay 25 Billion Won in Fines and Compensation

[Asia Economy New York=Special Correspondent Joselgina] The U.S. Consumer Financial Protection Bureau (CFPB) on the 26th (local time) imposed fines and customer compensation exceeding 25 billion won on Hyundai Capital America for 'credit reporting failure.'

According to materials posted on the CFPB website, the agency ordered Hyundai Capital America to pay a total of $19.2 million (approximately 25.17 billion won), including $13.2 million in customer compensation and $6 million in fines.

Hyundai Capital America was found to have provided inaccurate customer credit information to U.S. credit reporting companies from January 2016 to March 2020. During this period, CFPB pointed out that over 8.7 million instances of incorrect information were found across more than 2.2 million customer accounts. The CFPB explained, "Hyundai Capital America's credit reporting failures resulted in damage to customers' credit reports and lowered credit scores."

In response, a Hyundai Capital representative stated, "Hyundai Capital America received notification of the investigation results from the U.S. Consumer Financial Protection Bureau and ultimately reached a settlement agreement with the bureau." The representative added, "The settlement was made to support customers and focus on the future, and a comprehensive review of current credit reporting practices is already underway."

Hyundai Capital America is a U.S. subsidiary of Hyundai Motor Group, providing financial services to local customers of Hyundai Motor and Kia. This investigation was conducted across the U.S. auto finance industry, and additional results regarding other auto finance companies are expected to be announced in the future.

This content was produced with the assistance of AI translation services.