The company must pay $10 million in redress to customers who were wronged
of ConsumerAffairsThe Consumer Financial Protection Bureau (CFPB) has ordered American Honda Finance Corporation to pay $12.8 million for reporting incorrect information that harmed the credit reports of 300,000 Honda and Acura drivers.
Honda Finance must pay $10.3 million in redress to consumers and take steps to correct its prior erroneous reporting. It will also assessed a fine of $2.5 million.
Honda Finance used sloppy practices that smeared the credit reports of hundreds of thousands of its customers, said CFPB Director Rohit Chopra. False accusations on a credit report can have serious implications for Americans seeking a job, housing, or a loan.
The issue arose when Honda Finance incorrectly reported some customers as delinquent during the COVID-19 pandemic, even though they were on deferral plans. The CFPB also found that Honda Finance failed to properly investigate disputes about their credit reporting.
Honda Finance must pay $10.3 million to consumers and a $2.5 million penalty. The companys actions caused damage to borrowers credit reports, affecting their ability to get loans, jobs, or housing.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-17 22:50:53
