US sues Hyundai and Kia's financial arm, ET Auto, over military vehicle confiscation

The U.S. government on Wednesday accused the U.S. financial arm of Hyundai Motor Co. and Kia Motors Corp. of confiscating vehicles leased by military personnel without first obtaining court permission, as required by law.

From 2015 to 2023, Hyundai Capital America confiscated 26 vehicles whose owners had begun repaying their loans prior to active duty, violating the Servicemembers Civil Relief Act, according to a complaint filed in federal court in Los Angeles. did.

The Justice Department said military personnel should not suffer financial hardship because of their military service.

The Justice Department said in its complaint that in 2017, the department requisitioned and sold Naval Aviator Jessica Johnson's three-year-old Hyundai Elantra after its financing department determined it was active but “not deployed.” I gave an example.

Johnson still owes $13,796 on the car, and the loan department realized in 2020 that it should not have been repossessed, the complaint said.

Irvine, Calif.-based Hyundai Capital America and the automaker did not respond to requests for comment.

The lawsuit seeks an end to the unlawful seizure and a declaration that the matter concerns “a matter of vital public importance.”

In recent years, the Justice Department has settled military law claims against several financial companies, including General Motors, Nissan Motor Co., and the financial arm of Wells Fargo & Co.

The case is United States v. Hyundai Capital America, U.S. District Court for the Central District of California, No. 24-03818.