Hyundai settlement overview:
- Who: Hyundai Capital America has agreed to settle a Hyundai lawsuit alleging it unlawfully repossessed 26 United States military servicemembers’ vehicles without a court order.
- Why: The active duty servicemembers were protected by the Servicemembers Civil Relief Act, which required Hyundai to obtain a court order prior to repossessing their vehicles.
- Where: The proposed Hyundai settlement was filed in California federal court.
The U.S. Department of Justice announced Hyundai Capital America will pay nearly $334,000 to resolve a Hyundai lawsuit alleging it unlawfully repossessed more than two dozen vehicles owned by members of the armed forces.
Under the terms of the proposed Hyundai settlement, the automaker’s financing arm will pay $10,000 to each service member whose vehicle was reclaimed without a court order, plus nearly $75,000 to the U.S. government.
Hyundai lawsuit: Defendant violated law protecting servicemembers
The U.S. government’s Hyundai lawsuit alleged Hyundai repossessed 26 vehicles from active duty servicemembers without a court order in violation of the Servicemembers Civil Relief Act between April 2015 and May 2023.
According to the Hyundai lawsuit, Navy Airman Jessica Johnson purchased a Hyundai vehicle in 2014. She enlisted in the U.S. Navy in 2015 and sent Hyundai her military orders, notifying the company her car could not be repossessed without a court order while she was on active duty.
In 2017, Hyundai reportedly repossessed her vehicle while she was not currently deployed but still on active duty.
“Despite having been notified by Navy Airman Johnson as recently as July 31, 2017, that she was on active duty when her vehicle was repossessed, Hyundai sold her vehicle in October for $7,400,” the Hyundai lawsuit alleges. “On or about the date of repossession, Navy Airman Johnson still owed $13,796 on the finance contract.”
Hyundai settlement will pay $10K to 26 affected servicemembers
Johnson reportedly called Hyundai on multiple occasions to inform the company it misinterpreted her military orders, but Hyundai did not admit its error until February 2020, the Hyundai lawsuit says.
“Based on its review of documents provided by defendant related to its motor vehicle repossessions from April 15, 2015 through May 21, 2023, the United States has determined that defendant has repossessed, without court orders, 25 additional motor vehicles owned or leased by SCRA-protected servicemembers,” according to the Hyundai lawsuit.
In addition to the payments to affected servicemembers and the federal government, Hyundai also agreed to establish new procedures to ensure compliance with the SCRA and to repair the credit of affected servicemembers.
Hyundai recently agreed to settle a class action lawsuit alleging some of its vehicles were defective and vulnerable to theft.
What do you think about the Hyundai settlement? Tell us about it in the comments.
The U.S. government is represented by David M. Harris, Richard M. Park and Katherine M. Hikida of the U.S. Attorney’s Office for the Central District of California and Carrie Pagnucco, Elizabeth A. Singer and Patricia L. O’Beirne of the U.S. Department of Justice’s Civil Division.
The Hyundai lawsuit is United States of America v. Hyundai Capital America, Case No. 2:24-cv-03818, in the U.S. District Court for the Central District of California.
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3 thoughts on$300K settlement reached in Hyundai lawsuit alleging automaker repossessed veteran vehicles
My Hyundai was repo during 2016 my husband was a soldier
Hyundai doing Hyundai things
I had my Hyundai Sonata stolen and theft did a lot of damage. So why does Hyundai require the owner paid for repaired before they reversed the owner and only pay them 33% percent of the cost. I don’t think that’s right. I think Hyundai should reimburse their customers for the total cost of any repairs or damage down to the car and anything that was stolen out of the cars.