A Hyundai and Kia unit is accused of illegally repossessing cars from U.S. military service members. Because of this, the financial arm said it is willing to pay hundreds of thousands of dollars to settle charges against it.
The U.S. Department of Justice announced these details on Wednesday, May 8. Here are other things that DOJ shared.
Hyundai, Kia Unit Illegally Repossessed Cars From Military Personnel
According to NBC News' latest report, the American financing arm of Kia and Hyundai will pay $334,941 to settle the illegal repossession charges filed against it.
Hyundai Capital America, wholly owned by Kia America and Hyundai Motor America, is accused of violating the SCRA (Servicemembers Civil Relief Act) by reclaiming 26 cars between 2015 and 2023.
In the lawsuit filed by the Department of Justice in federal court in Los Angeles, the repossessed vehicles are owned by U.S. military personnel, as reported by CBS News.
Hyundai Capital America Didn't Admit Wrongdoing
Hyundai Capital America Assistant Attorney General Kristen Clarke said that Armed Forces members still in military service should not have to worry about their cars getting repossessed.
The financial unit said it would pay $10,000 and lost vehicle equity to each affected service member. Aside from this, the company promised to repair their credit scores. Hyundai Capital America will also pay $74,941 to the U.S. Treasury to vindicate the public interest.
However, the financial arm of Hyundai and Kia didn't admit any wrongdoing on its side. Although this is the case, a spokesperson said they have already taken steps to enhance compliance with all SCRA requirements and provide further proactive outreach.
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