By Katherine Hamilton
American Honda Finance has been asked to pay $12.8 million for allegedly reporting that certain borrowers were delinquent when they should have been reported as current.
Honda Finance deferred certain vehicle loan payments during the Covid-19 pandemic and promised to report those borrowers as current to credit-reporting agencies, but it still reported some of them as delinquent, the Consumer Financial Protection Bureau said Friday. This harmed 300,000 borrowers' credit reports, the CFPB said.
The regulatory agency said it is ordering Honda Finance to pay $10.3 million redress to consumers and a $2.5 million civil penalty.
Honda Finance, which is an auto-finance subsidiary of American Honda Motor, violated the Fair Credit Reporting act through its actions, the CFPB said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
January 17, 2025 12:08 ET (17:08 GMT)
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