Honda Motor's (HMC) auto financing arm was ordered to pay $12.8 million by a US consumer watchdog for alleged credit-reporting failures.
American Honda Finance allegedly deferred certain vehicle loan payments during the COVID-19 pandemic and told credit reporting companies that borrowers were delinquent, even though they should have been reported as current. the Consumer Financial Protection Bureau said Friday in a statement.
The action affected the credit reports of 300,000 people who drive Honda and Acura vehicles, the bureau said.
The bureau is ordering the company to pay $10.3 million to harmed customers and a $2.5 million civil penalty.
Honda Motor didn't immediately respond to a request for comment from MT Newswires.
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