Honda Finance Arm to Pay $12.8 Million for Credit Report Lapses

Honda Motor Co.’s American finance unit will pay $12.8 million for reporting inaccurate information that affected the credit scores of 300,000 people, including by tagging borrowers as delinquent when they had payments paused during the Covid-19 pandemic.

American Honda Finance Corp. will return around $10.3 million to Honda and Acura drivers who were harmed by the credit reporting problems and pay a $2.5 million fine under a Friday consent order from the Consumer Financial Protection Bureau.

The order is the agency’s latest enforcement action over credit reporting problems. The CFPB separately fined credit reporting giant Equifax Inc. $15 million on ...