Honda's U.S. financing arm was ordered on Friday by the U.S. Consumer Financial Protection Bureau to pay $12.8 million for reporting inaccurate information that affected the credit reports of 300,000 drivers of Honda and Acura vehicles.
The CFPB said American Honda Finance deferred some drivers' loan payments during the COVID-19 pandemic, only to then tell credit reporting agencies that the drivers were delinquent when they should have been reported as current.
"False accusations on a credit report can have serious implications for Americans seeking a job, housing or a loan," CFPB Director Rohit Chopra said in a statement faulting the financing arm's "sloppy practices."
The $12.8 million payment includes a $2.5 million civil fine and $10.3 million in restitution to drivers.
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