Honda Finance Ordered to Pay $12.8 Million Over Credit Reporting Failures

The CFPB found that Honda Finance inaccurately reported 300,000 borrowers' credit statuses, including deferrals during the COVID-19 pandemic, as delinquencies.

• The Consumer Financial Protection Bureau (CFPB) has fined American Honda Finance Corporation $12.8 million for violations of the Fair Credit Reporting Act (FCRA).
• The company inaccurately reported 300,000 borrowers as delinquent, including 85,000 accounts with deferred payments during the COVID-19 pandemic that should have been marked as current.
• The settlement includes $10.3 million in restitution to affected customers and a $2.5 million civil penalty paid to the CFPB's victims relief fund.
• The CFPB investigation revealed additional failures, including incomplete or inaccurate reporting of account statuses, unresolved errors, and failure to investigate consumer disputes properly.
• Honda Finance has not admitted wrongdoing but stated that resolving the matter allows it to focus on improving customer service.

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