Hyundai and Kia unit settles U.S. charges it repossessed service members’ vehicles
Hyundai Capital Services, a unit of Hyundai and Kia Motors, has reportedly settled U.S. charges, stemming from allegations of illegally repossessing vehicles from U.S. service members. Under the terms of the settlement, Hyundai has agreed to pay a sum of money, although the precise amount was not disclosed, and is also required to adopt procedures aimed at preventing future unlawful repossessions.
The U.S. Justice Department stated that the company violated the Servicemembers Civil Relief Act (SCRA), a law that provides legal protections to military members while they are on active duty. According to the charges, Hyundai engaged in unlawful repossessions of cars owned by U.S. servicemen and women, without a court order, while they were serving on active duty.
In addition to the financial penalty, Hyundai has also agreed to establish a $1 million fund to compensate affected service members. They are also required to repair the credit of any service members who suffered from their practices.
The company will also aim to put into place better policies and practices to prevent such incidents in the future. This will include staff training, regular audits, and more rigorous document checks for all auto loan applications.