In a significant development, Kia and Hyundai have announced a settlement that will see millions of their customers receiving a direct deposit payment of $3,375. This comes in response to a class-action lawsuit filed against the automakers, which claimed that certain vehicles were susceptible to theft due to a lack of essential anti-theft technology. This settlement is expected to bring some relief to affected vehicle owners.
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Background of the Settlement
The lawsuit arose after widespread reports indicated that certain Kia and Hyundai models, primarily manufactured between 2011 and 2021, lacked engine immobilizers. Engine immobilizers are an important anti-theft feature that prevents a vehicle from being started without the correct key. The absence of this security measure made these vehicles easier targets for theft, leading to a surge in break-ins and thefts, particularly in urban areas.
In response to these concerns, both automakers faced legal challenges, with affected customers alleging negligence in providing sufficient theft protection. This settlement represents Kia and Hyundai’s attempt to compensate affected owners for the stress, damages, and increased insurance premiums resulting from this issue.
Eligibility for the Payment
To qualify for the $3,375 direct deposit, customers must meet specific eligibility criteria. The primary condition is that the customer must own or have owned a Kia or Hyundai vehicle produced between 2011 and 2021, and the vehicle must be among the models that were reported as vulnerable to theft due to the missing immobilizer. Details on how to apply for the settlement payment, including proof of ownership and model verification, will be made available through a dedicated settlement website.
For customers still owning these vehicles, Kia and Hyundai have also announced a software update that will improve the vehicle’s security features, including the installation of an aftermarket immobilizer, at no cost to the owner.
How to Receive the Settlement Payment
Eligible customers will receive the $3,375 payment via direct deposit. Kia and Hyundai have streamlined the process to ensure quick and efficient distribution of funds. To receive the payment, customers will need to submit a claim form along with the required documentation, which includes proof of vehicle ownership and relevant insurance claims, if applicable. The claim form will be available online, and the deadline for submission will be announced shortly.
Legal Complaints
The settlement follows a wave of legal complaints filed by plaintiffs in multiple states across the U.S. against Kia and Hyundai. These customers alleged that the automakers’ vehicles were missing essential anti-theft technology, specifically engine immobilizers.
Engine immobilizers prevent a car from being started without the proper key or fob, a feature that had become standard in many vehicles from other manufacturers during the same period. While competitors were equipping their vehicles with this technology, Kia and Hyundai continued to rely on traditional turn-key ignition systems, making their vehicles more susceptible to theft.
This security oversight led to a significant increase in vehicle thefts, ultimately resulting in the legal actions brought against both companies.
Implications for Kia and Hyundai
This settlement is expected to cost the automakers millions of dollars, but it marks an important step toward addressing the concerns raised by their customers and restoring trust. Both companies have stated that they remain committed to enhancing vehicle security and ensuring that their customers are protected.
Additionally, this case has highlighted the need for automakers to prioritize anti-theft measures in vehicle design. Going forward, Kia and Hyundai have promised to implement more robust security features in their future models.
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For Kia and Hyundai customers, this settlement brings both financial relief and an opportunity to improve the security of their vehicles. The $3,375 direct deposit is a notable compensation, but more importantly, it signals a shift in the automotive industry toward greater accountability and a focus on consumer protection.
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