The Bank Slate


Honda’s financing arm discloses CFPB probe

American Honda Finance, automaker Honda’s financing arm, said it is being investigated by the Consumer Financial Protection Bureau over its “furnishing of credit reporting information on consumer accounts.”

The consumer finance company said in a regulatory filing that the CFPB sent it a “civil investigative demand” November. The investigation is connected to the financing arm’s “furnishing of credit reporting information on consumer accounts.” 

American Honda Finance said it is cooperating with the bureau, but “cannot predict the eventual scope, duration or outcome of this investigation and is unable to estimate the amount or range of potential losses, if any, at this time.” 

The CFPB in November ordered Toyota’s auto finance business to pay $60 million to address alleged delayed and withheld customer refunds. The consent order also claimed the finance arm made it difficult to people to cancel unwanted add-on products and shared false consumer data with credit bureaus, according to a CFPB consent order. 

Honda’s finance business reached a $24 million settlement with the CFPB in 2015 to address claims that its dealership partners made loans to minorities at disproportionately higher interest rates.

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