How this automaker hurt the credit reports of millions

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Hyundai reported inaccurate information to US credit bureaus, harming millions of consumer credit reports.


Key points

  • The Consumer Financial Protection Bureau found that Hyundai had been reporting inaccurate information to credit reporting agencies for several years.
  • These errors negatively impacted over 2.2 million customers.

In the United States, credit reports are very important. Your credit report and credit score can determine the type of financial opportunities you qualify for, and negative ratings can have a significant impact on your life in many ways.

Hyundai reported inaccurate information to the credit bureaus for several years, which negatively impacted over 2 million customers. Find out what went wrong and what the company is doing to fix the problem.

According to an investigation by the Consumer Financial Protection Bureau, Hyundai Capital America (Hyundai) used outdated systems, processes and procedures to provide credit information from 2016 to 2020.

This led to inaccurate information being submitted to US credit bureaus, and consumer credit reports were negatively affected. The agency found that the automaker also failed to fix the errors once they were identified.

The CFPB found that Hyundai reported inaccurate information more than 8.7 million times and that those errors impacted more than 2.2 million consumer accounts.

Some of the inaccuracies have led to lower credit scores and negatively impacted customers’ access to credit. Because of its errors, Hyundai will be penalized.

Hyundai must pay current and former customers $13.2 million

Hyundai will pay $13.2 million to affected current and former customers.

Customers with inaccurate reports that they were 30 days or more past due on loans or leases are eligible for compensation for the harm caused.

In addition, the brand will have to pay a $6 million fine to a CFPB victim relief fund.

Hyundai shall also correct all inaccuracies and errors and shall describe policies and procedures regarding the accuracy of information it provides to credit reporting companies.

The CFPB notes that this is the largest Fair Credit Reporting Act case against an auto repairer.

Consumers should check their credit report regularly

This news is a good reminder of the importance of regularly reviewing credit reports.

Mistakes happen and inaccuracies can have negative consequences. You don’t want to be unfairly judged by a potential creditor because of an error on your report.

Consumers can access their credit reports free of charge through the three credit bureaus at AnnualCreditReport.com.

Usually, consumers can access a report from each bureau once every twelve months.

However, until the end of 2022, consumers can view 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 is 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 contact the company that reported the inaccurate information and provide a copy of your case.

If the credit bureau agrees with your dispute, they will correct the error and your credit report will be updated. You will receive a copy of your new credit file.

If the office does not 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 is also a good idea to file a complaint with the CFPB. Complaints help the agency identify and investigate wrongdoing.

It is essential to stay informed of essential financial matters and to review your credit report.

If you’re looking for ways to improve your financial situation or want to learn more about credit, check out our personal finance resources.

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