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US sues Hyundai and Kia for repossessing military vehicles
By Jonathan Stempel
(Reuters) – The United States government on Wednesday sued the American financial arm of Hyundai and Kia, accusing it of repossessing vehicles rented by military personnel without first obtaining court permission, as required by law.
According to a complaint filed in Los Angeles federal court, Hyundai Capital America violated the Servicemembers Civil Relief Act between 2015 and 2023 by repossessing 26 vehicles whose owners began paying their loans before active service.
The Justice Department said members of the Armed Forces should not suffer financial hardship because of their service.
In its complaint, the Justice Department cited as an example the repossession and sale in 2017 of Navy aviator Jessica Johnnson’s three-year-old Hyundai Elantra after the financial arm determined she was on active duty but “not deployed.”
Johnson still owed $13,796 on the car, and the finance arm realized in 2020 that it should not have repossessed it, the complaint said.
Hyundai Capital America, based in Irvine, California, and the automakers did not immediately respond to requests for comment.
The action seeks to suspend undue repossessions and a declaration that the matter concerned “a matter of significant public importance.”
In recent years, the Justice Department has resolved complaints under the military law against several financial companies, including the financial arms of General Motors, Nissan and Wells Fargo.
The case is U.S. v. Hyundai Capital America, U.S. District Court, Central District of California, No.