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American Honda Finance to pay $12.8M to settle CFPB claims

American Honda Finance in Torrance, Calif., will pay $12.8 million to address claims by the Consumer Financial Protection Bureau that it inaccurately reported that 300,000 borrowers were delinquent when their payments were paused during the pandemic.

The CFPB asserted that, because the payments were deferred, the accounts should have been reported as current. The company also failed to conduct appropriate investigations of customer disputes, the bureau claimed.

The bureau ordered the company to pay $10.3 million to harmed customers and to pay a $2.5 million civil money penalty.

“Honda Finance used sloppy practices that smeared the credit reports of hundreds of thousands of its customers,” CFPB Director Rohit Chopra said in a press release. “False accusations on a credit report can have serious implications for Americans seeking a job, housing, or a loan.”

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