|
On January 17, 2025, the CFPB announced that it had entered into a consent order with the financing arm of a major auto manufacturer, resolving allegations that the manufacturer violated the Fair Credit Reporting Act (FCRA) and its implementing Regulation V, and the Consumer Financial Protection Act (CFPA) through its allegedly improper reporting of consumer credit information to credit reporting agencies (CRAs). In its consent order, the CFPB alleged that the manufacturer committed numerous violations of the FCRA and the CFPA, including by 1) furnishing inaccurate credit information to CRAs for over 300,000 consumers, and failing to promptly correct that information once the manufacturer became aware it was incorrect, 2) failing to conduct reasonable or timely investigations into credit reporting disputes submitted by customers directly to the auto manufacturer, 3) improperly reporting as delinquent payments that it had deferred pursuant to the CARES Act, and 4) failing to maintain reasonable written policies to ensure the accuracy of information it furnished to CRAs. In the consent order, the manufacturer agreed to pay $10,300,000 in consumer redress as well as a $2,500,000 civil money penalty. |
