The U.S. Consumer Financial Protection Bureau orders Honda Financial to compensate customers with damaged credit

On January 17 local time, the U.S. Consumer Financial Protection Bureau (CFPB) stated in a press release that it ordered American Honda Finance Corporation to pay $12.8 million due to inaccurate reporting that affected the credit reports of 300,000 Honda and Acura owners. During the COVID-19 pandemic, Honda Finance delayed some auto loan repayments. However, the CFPB found that the company reported borrowers as delinquent to credit reporting agencies when they should have been reported as current. The CFPB's investigation also uncovered multiple errors in the accuracy of credit information provided and in dispute investigations. The CFPB ordered the company to pay $10.3 million in compensation to affected customers and a civil penalty of $2.5 million