Hyundai and Kia Settlement: Resolving Allegations of Vehicle Repossession from Service Members in the U.S.

Hyundai and Kia Unit Settles U.S. Charges It Repossessed Service Members’ Vehicles

The recent settlement between the U.S. government and Hyundai Capital America and its subsidiary, Kia Motors Finance, highlights the importance of protecting the rights of service members. This case sheds light on the challenges faced by military members when it comes to financial matters and the potential repercussions of failing to comply with regulations designed to safeguard them.

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial and legal protections to military personnel. It includes provisions that prevent repossession of service members’ vehicles without a court order if they took out the loan before entering military service. Despite these protections, Hyundai and Kia failed to adequately implement the necessary safeguards, resulting in the unlawful repossession of service members’ vehicles.

The $3.2 million settlement underscores the seriousness of the violations committed by Hyundai Capital America and Kia Motors Finance. It serves as a reminder to financial institutions of the legal obligations they have to comply with the SCRA and protect service members from unjust practices. The government’s enforcement actions in cases like this demonstrate its commitment to upholding the rights of military members and holding accountable those who disregard the law.

In addition to the financial penalty, Hyundai and Kia have agreed to take corrective actions to ensure future compliance with the SCRA. This includes developing and implementing policies and procedures to prevent unlawful repossessions of service members’ vehicles and providing training to their employees on the rights of military personnel under the law. By taking these steps, the companies are demonstrating their commitment to addressing the issues that led to the violations and improving their practices to avoid similar incidents in the future.

Service members make significant sacrifices to protect their country, and it is essential to ensure that they are not taken advantage of in their financial dealings. Cases like the one involving Hyundai Capital America and Kia Motors Finance serve as a stark reminder of the vulnerability of military personnel when it comes to financial matters and the critical need for proper safeguards to be in place. By holding companies accountable for their actions and enforcing laws designed to protect service members, the government plays a crucial role in safeguarding the rights and well-being of those who serve in the military.