CFPB Orders Honda’s Financing Arm to Pay $12.8 Million

By Staff Writer January 31, 2025

The Consumer Financial Protection Bureau ordered the American Honda Finance Corporation to pay $12.8 million for reporting inaccurate information that affected the credit reports of 300,000 people who drive Honda and Acura vehicles.

During the COVID-19 pandemic, Honda Finance deferred certain vehicle loan payments. However, the CFPB found that the company told credit reporting companies that borrowers were delinquent when they should have been reported as current.

The CFPB’s investigation also found multiple other credit furnishing accuracy and dispute investigation failures. The CFPB is ordering the company to pay $10.3 million in redress to harmed customers and to pay a $2.5 million civil money penalty.

“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 CFPB found that Honda Finance violated the Fair Credit Reporting Act. Honda Finance furnished false and harmful information that ended up on borrowers’ credit reports. The company also failed to conduct appropriate investigations of customer disputes.

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Last modified on Thursday, 06 February 2025 12:19