On Wednesday, the U.S Department of Justice stated that Hyundai and Kia’s financing arm is liable to pay USD 334,941 to settle charges that it illegally repossessed vehicles belonging to military service members.

Based on the papers filed in Los Angeles federal court, Hyundai Capital America allegedly violated the Servicemember Civil Relief Act between 2015 and 2023 by repossessing 26 vehicles whose owners had started to pay off their loans before active duty.

The Justice Department clarified that it was pre-requisite for the financing arm to obtain court permission before repossessing vehicles. Furthermore, it cited the example of 2017 repossession and sale of Navy Airman Jessica Johnson’s three-year-old Hyundai Elantra. The repossession only took place after the financing department determined that she was on active duty and “not deployed.”

Johnson still had outstanding payments worth USD 13,796 on the car and Hyundai Capital America came to the conclusion in 2020 that it should not have repossessed the Elantra, court papers show.

“Members of our Armed Forces should not have to worry about having their cars repossessed while they are in military service," Assistant Attorney General Kristen Clarke said in a statement.

Hyundai Capital America based in Irvine, California, is positioned to pay USD 10,000 plus lost vehicles to each of the 26 service members and also repair their credit. On the top of that, it will also pay USD 74,941 to the U.S. Treasury “to vindicate the public interest.” However, it shall do so without admitting wrongdoing.&nbsp;

In the last several years, the Justice Department has settled several claims under the servicemembers law against several financing companies, including General Motors, Nissan and Wells Fargo financial arms, among others.

To assuage the Justice Department as well as the public, Hyundai Capital America reiterated in a statement that “HCA takes pride in supporting our military families … Additionally, we have already taken steps to further enhance our compliance with all SCRA requirements."

On Wednesday, the U.S Department of Justice stated that Hyundai and Kia’s financing arm is liable to pay USD 334,941 to settle charges that it illegally repossessed vehicles belonging to military service members.

On Wednesday, the U.S Department of Justice stated that Hyundai and Kia’s financing arm is liable to pay USD 334,941 to settle charges that it illegally repossessed vehicles belonging to military service members. Based on the papers filed in Los Angeles federal court, Hyundai Capital America allegedly violated the Servicemember Civil Relief Act between 2015 and 2023 by repossessing 26 vehicles whose owners had started to pay off their loans before active duty. The Justice Department clarified that it was pre-requisite for the financing arm to obtain court permission before repossessing vehicles. Furthermore, it cited the example of 2017 repossession and sale of Navy Airman Jessica Johnson’s three-year-old Hyundai Elantra. The repossession only took place after the financing department determined that she was on active duty and “not deployed.” Johnson still had outstanding payments worth USD 13,796 on the car and Hyundai Capital America came to the conclusion in 2020 that it should not have repossessed the Elantra, court papers show. “Members of our Armed Forces should not have to worry about having their cars repossessed while they are in military service," Assistant Attorney General Kristen Clarke said in a statement. Hyundai Capital America based in Irvine, California, is positioned to pay USD 10,000 plus lost vehicles to each of the 26 service members and also repair their credit. On the top of that, it will also pay USD 74,941 to the U.S. Treasury “to vindicate the public interest.” However, it shall do so without admitting wrongdoing. In the last several years, the Justice Department has settled several claims under the servicemembers law against several financing companies, including General Motors, Nissan and Wells Fargo financial arms, among others. To assuage the Justice Department as well as the public, Hyundai Capital America reiterated in a statement that “HCA takes pride in supporting our military families … Additionally, we have already taken steps to further enhance our compliance with all SCRA requirements."

Hyundai, Kia accused of illegally repossessing service members' vehicles

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Hyundai, Kia accused of illegally repossessing service members' vehicles