Honda financing arm under investigation by CFPB

TLDR: The Consumer Financial Protection Bureau (CFPB) is investigating Honda’s financing arm, American Honda Finance Corp., for potential issues related to credit reporting. The investigation stems from a routine regulatory filing in which American Honda Finance disclosed that it had received a “civil investigative demand” from the CFPB. The financing arm is cooperating with the bureau, but the scope, duration, and outcome of the investigation are unknown at this time. The CFPB recently cracked down on another auto financing entity, Toyota Motor Credit, ordering it to pay $60 million for various violations. This probe into Honda’s financing arm comes as part of the CFPB’s ongoing efforts to address issues in the auto lending industry.