The U.S. financial units of Hyundai and Kia Motors confiscated more than 20 vehicles leased by U.S. military personnel without first obtaining a legally required court order, federal prosecutors alleged Wednesday.
From 2015 to 2023, Hyundai Capital America, a wholly owned subsidiary of Hyundai Motor America and Kia America, recalled 26 vehicles owned by military personnel who began repaying loans before starting active duty, according to the lawsuit. and violated the Military Civil Relief Act. The Department of Justice filed the complaint in federal court in Los Angeles.
For example, in 2017, Hyundai Capital America sold a 3-year-old Hyundai Elantra owned by Naval Aviator Jessica Johnson after determining that she was on active duty but “not deployed,” according to legal documents. It was seized and sold. Johnson still owes $13,769 on the car, and the company realized in 2020 that it should not have repossessed it, according to the complaint.
Irvine, Calif.-based Hyundai Capital America did not respond to a request for comment.
Military personnel should not suffer financial hardship as a result of their military service, according to the Justice Department, which has settled similar lawsuits against General Motors, Nissan Motor Co. and the financial divisions of Wells Fargo & Co. in recent years.
