How this automaker damaged the credit reports of millions of people

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

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Key points

• The Consumer Financial Protection Bureau found that Hyundai reported inaccurate information to credit reporting agencies for several years.
• These errors negatively affected more than 2.2 million customers.

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In the United States, credit reports are a big deal. Your credit report and credit score You can determine what kinds of financial opportunities you qualify for, and negative ratings can significantly affect your life in many ways.

Hyundai reported inaccurate information to credit bureaus for several years, negatively affecting more than 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According to an investigation by the Consumer Financial Protection Bureau, Hyundai Capital America (Hyundai) used outdated systems, processes and procedures to provide credit reporting information from 2016 to 2020.

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

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

Some of the inaccuracies led to lower credit scores and negatively affected customers’ access to credit. Due to their 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 affected customers.

Customers with inaccurate reports saying they were 30 or more days past due on loans or leases are eligible for damage compensation.

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

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

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

Consumers should check their credit reports regularly

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

Errors happen and inaccuracies can have negative consequences. You do not want to be judged unfairly by a potential creditor because of an error on your report.

Consumers can access their credit reports at no cost through the three credit bureaus in Credit Annual Report.com.

Consumers can generally 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 bugs

If you notice an error on your credit report, it’s important to discuss 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 incorrect information and provide a copy of your dispute.

If the credit bureau agrees with your dispute, it will correct the error and your credit report will be updated. A copy of your new credit report will be sent to you.

If the office disagrees, no changes will be made to your report. You can send a letter stating that you do not agree with the result.

When this happens, it’s also a good idea to file a complaint with the CFPB. Complaints help the agency identify and investigate irregularities.

Staying on top of essential financial 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, check out our personal finance resources.