CFPB Orders American Honda Finance $12.8M Penalty and Redress

The Consumer Financial Protection Bureau (CFPB) has issued a final order against American Honda Finance Corporation (Honda Finance), requiring the company to pay a $2.5 million civil money penalty and $10.3 million in consumer redress. The enforcement action, identified under docket number 2025-CFPB-0003, found that Honda Finance violated the Fair Credit Reporting Act (FCRA), Regulation V, and the Consumer Financial Protection Act (CFPA). Specifically, the company inaccurately reported consumers as delinquent on deferred payments during the COVID-19 crisis, failed to conduct proper dispute investigations, and did not maintain adequate policies for furnishing accurate credit information.

This order mandates that Honda Finance comply with the law and implement corrective actions. Regulated entities involved in auto finance and credit reporting should review their practices regarding payment deferrals, dispute resolution, and data furnishing to ensure compliance with FCRA and related regulations. Failure to adhere to these requirements can result in significant penalties and consumer redress obligations, as demonstrated by this case.