CFPB Orders American Honda Finance $12.8M Penalty and Redress

CFPB Enforcement Actions

Filed January 17th, 2025

Detected February 7th, 2026

Summary

The Consumer Financial Protection Bureau (CFPB) ordered American Honda Finance Corporation (Honda Finance) to pay a $2.5 million civil money penalty and $10.3 million in consumer redress. The order addresses violations of the Fair Credit Reporting Act (FCRA) related to inaccurate reporting of consumer payment deferrals during the COVID-19 pandemic.

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What changed

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.

Source document (simplified)

American Honda Finance Corporation

On January 17, 2025, the Bureau issued an order against American Honda Finance Corporation (Honda Finance) to address its violations relating to its furnishing of inaccurate consumer reporting information. Honda Finance is a nonbank and the captive automotive finance company for American Honda Motor Co., Inc., which is the sole authorized distributor of Honda and Acura motor vehicles in the United States. Honda Finance’s practices violated the Fair Credit Reporting Act (FCRA), its implementing regulation, Regulation V, and the Consumer Financial Protection Act of 2010 (CFPA). The Bureau found that, during the COVID-19 crisis, Honda Finance allowed consumers to defer payments and promised to continue reporting those consumers to the consumer reporting agencies (CRAs) as current, but instead, reported those consumers as delinquent when they did not make payments during the deferral period, in violation of the Fair Credit Reporting Act (FCRA). The Bureau also found that Honda Finance violated FCRA and its implementing Regulation V by continuing to furnish inaccurate and incomplete information after it determined the information was incomplete or inaccurate; failing to timely complete indirect dispute investigations and report the results of the investigations to CRAs; failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information it furnished to CRAs; and failing to conduct reasonable investigations of direct disputes and timely report the results to consumers. The Bureau’s order requires Honda Finance to come into compliance with the law, pay $10.3 million in consumer redress, and pay a $2.5 million civil money penalty to the Bureau.