WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today 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.”
Honda Finance is a nonbank automotive finance company for American Honda Motor Co., Inc., which is the sole authorized distributor of Honda and Acura motor vehicles in the United States. Honda Finance is headquartered in Torrance, California. Honda Finance is a wholly owned subsidiary of American Honda Motor. Honda Finance’s primary business is the purchase and servicing of loans and leases arranged by Honda and Acura dealerships. As part of their business, Honda sends data about borrowers that appears on their credit reports.