Hyundai Capital America, doing business as Hyundai Motor Finance and Kia Motors Finance, has agreed to pay $27 million to settle U.S. charges that it improperly repossessed hundreds of military service members’ vehicles. According to the Justice Department, the company violated the Service members Civil Relief Act (SCRA) that protects service members from certain financial strains during active duty. The settlement resolves a lawsuit claiming that between 2008 and 2020, Hyundai and Kia illegally repossessed 862 vehicles of service members without obtaining necessary court orders. As part of the settlement, the affected service members will receive compensation, and the company will also pay a $5.4 million civil penalty.
Hyundai and Kia unit settles U.S. charges it repossessed service members’ vehicles
Hyundai Capital America, doing business as Hyundai Motor Finance and Kia Motors Finance, has agreed to pay $27 million to settle U.S. charges that it improperly repossessed hundreds of military service members’ vehicles. According to the Justice Department, the company violated the Service members Civil Relief Act (SCRA) that protects service members from certain financial strains during active duty. The settlement resolves a lawsuit claiming that between 2008 and 2020, Hyundai and Kia illegally repossessed 862 vehicles of service members without obtaining necessary court orders. As part of the settlement, the affected service members will receive compensation, and the company will also pay a $5.4 million civil penalty.
