2020-2022 Hyundai Palisade Tow Hitch Issue

Class Action Investigation

Updated on Author: Brian Jones

Lemberg Law is investigating complaints regarding an urgent 2020-2022 Hyundai Palisade tow hitch harness recall. The danger is that vehicles could catch fire while being driven or when parked. Palisade owners are reporting that the part for the recall, that will negate the fire risk, is not available. A temporary remedy is for dealers to remove the fuse from the tow hitch module. But some owners report that dealers won’t undertake the repair. When the fuse is removed, the fire risk is eliminated, but owners cannot tow anything. 

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Is There a Problem with the Tow Hitch?

There is a major problem with the tow hitch harness of the 2020-2022 Hyundai Palisade models. Potentially, as many as 245,030 vehicles are affected.

The faulty tow hitch harnesses were either installed as original Hyundai equipment or purchased as an accessory through an official Hyundai dealership. According to the recall notice released on August 18, 2022, if debris and moisture accumulate on the tow hitch harness module printed circuit board (PCB), it may cause an electrical short. This can result in a fire and can spark while the Palisade is driving or parked. Because of this, it can also “increase the risk of injury.”

For this reason, Hyundai advises owners to park outside and away from structures until the recall repair is complete. Announcing that a “final remedy” was under development, the manufacturer has told owners that until this was available, dealers would implement “an interim repair.” The temporary measure involves dealers inspecting the tow hitch module and removing the fuse free of charge. Removing the fuse cuts off the power to the hitch wire harness, in this way eliminating the fire risk.

Interim notification letters that warn owners of the safety risk were mailed on October 14, 2022.

Is There a Recall?

There isn’t a recall for the 2023 model. But, since Hyundai hasn’t found a solution for its faulty tow hitch harness in the previous three models, there is no reason to assume that the 2023 model won’t have exactly the same problem.

While it is still early days for the model, NHTSA complaints are already piling up. But none of the 33 complaints filed between August 9 and December 17, 2022, have anything to do with the tow hitch. There are no recalls on file, nor are either of the 2 manufacturer communications registered related to the tow hitch.

What Problems are Owners Experiencing with Tow Hitches?

Late December 2022, more than four months after the recall notice was issued to dealers, Hyundai still hasn’t found a solution. Owners are complaining that because the recall repair part isn’t available, the only option is to have dealers perform the temporary fix. But this renders the tow hitch inoperable, so they cannot tow anything.

Most complaints to the National Highway Traffic Safety Administration (NHTSA) state that dealers have removed the fuse but that the manufacturer has “exceeded a reasonable amount of time for the recall repair.”

But it appears that some dealers just state that the parts are not yet available. Some dealers tell owners they can “remove the fuse to prevent failure.” Others, owners say, simply refuse to help.

The Pennsylvanian owner of a 2021 model Palisade states, “the dealer declined to inspect the vehicle for the interim repair.”

A Wisconsin owner of a 2021 model discovered the problem when the car went in for a routine oil change and service. Her husband was told that “the remedy was not yet available,” but that “he could remove the fuse to prevent the failure. The vehicle was not repaired. The manufacturer was notified of the issue but provided no additional assistance.”

While it appears that most owners haven’t experienced a tow hitch failure, some have. The owner of a 2022 Palisade states in an NHTSA complaint that when attaching a trailer to the tow hitch of the vehicle, “the tow hitch failed to operate as needed.” There were no indicator lights, so “he replaced the electrical wiring of the trailer himself.” But “the failure persisted.”

The dealer was notified of the failure and was informed that the VIN was included in NHTSA Campaign Number: 22V633000 (Trailer Hitches). The dealer removed the tow hitch fuse as an interim repair.

What Should You Do if Your Palisade is Experiencing Problems with the Tow Hitch?

Lemberg Law is investigating complaints about the 2020-2022 Hyundai Palisade’s faulty tow hitch and wire harness. If you are experiencing problems with your Palisade, we’d like to hear about them. If you are interested, you might qualify for our class action investigation.

All you need to do is call us at 844-928-4443 or complete our contact form. We will evaluate your case and see if you qualify. It won’t cost you anything because the law says that Hyundai must pay the legal bills for lemon law cases.

Brian Jones

About the Author:

Brian Jones spent more than 30 years working as an ASE Certified Master Tech and Parts Specialist at multiple dealerships. Brian has become an authority in the industry, traveling across the country to consult for car dealerships and contributing his expertise as a writer for several major automotive publications. In his spare time, Brian enjoys working on pickup trucks, muscle cars, Jeeps and anything related to motorsports.

See more posts from Brian Jones
  • Keith F

    If the problem is debris or water on the trailer wiring harness PCB, why not just wrap the PCB in electrical tape, or coat the casing with something called in Liquid Tape.

  • Joe

    Same as above. I purchased the 2023 Palisade SEL to tow. Now I cant get anything OEM for a hitch, light wiring let alone the 7 pin I need to tow at the advertised 5000 lbs capacity. Very disappointed.

  • Rick B

    2023 Palisade – No satisfaction with Hyundai customer support. Latest discussion concluded with them telling me to submit a complaint to the Better Business Bureau, which I did. They even gave me the information. I do not expect a satisfactory resolution. I have three trailers to tow. I asked them to buy it back and they said no. They said I also had to option to trade it in for a vehicle that fits my needs.
    Totally disappointed with Hyundai

  • Andre G

    I am the same as everyone else. I bought a 2021 limited Palisade for the express purpose of towing my pontoon boat. I had a tow hitch installed at U-Haul, but they would not install the wiring harness. This has destroyed my plans I am very frustrated 😠. While I love the car I would take a rebuy option for full price or equal trade for a limited Palisade 2023 with working tow package.

  • Steven A

    I also bought the 2021 Palisade for the towing capacity of the vehicle and one year later get a notification that there is an issue and they need to disable the towing harness. It is coming up on almost 1 year since they issued the recall in 2022 and still no fix. The truck is virtually useless to me with no towing. I cannot sell it privately with an outstanding recall that has no fix and it is depreciating everyday. There needs to be some sort of compensation from Hyundai for this. Not to mention they already had an issue with interior leather bad odor as well that cant be fixed.

  • Becky J

    Like Paula S., I purchased a 2023 Palisade for towing on Dec. 31, 2023. I bought the tow package and was to have it installed by Hyundai first; they told me they were out of stock and I would have to wait until this SPRING TO HAVE IT INSTALLED; then here we are in spring, and they tell me there’s a recall and, I was told that there is no way to wire the lights for the trailer. Then was told I could get an aftermarket one installed, but it could nullify my warranty as well, as the additional extended warranty I purchased. So now they will not return the car since it has been titled. Let me not forget that they “just found out about this issue after I purchased the vehicle.”

  • Leonard a

    Bought my 2023 Palisade in January 2023. I was told by the dealer that they expected the wiring harness fix to be ready in February. Here we are in May and the dealer is saying they have no idea when the wiring harness issue will be fixed. Bought this model because I needed towing capabilities. Need a class action suit to force Hyundai to either install proper wiring harness or refund our money.

  • Mark S

    I purchased a 2022 Hyundai Palisade equipped with the factory tow package so that I could tow my boat. The towing feature has been disabled since the fall. Hyundai continues to promote towing ability. Shame on Hyundai.

  • Erika W

    I purchased a 2022 Hyundai Palisade for the sole purpose of towing a small camper. I inquired about having the hitch installed in October 2022 and was told “actually we had to pull the fuse on the wiring due to a recall but the fix should be out in about 90 days” as that is the amount of time considered reasonable. It is now April 2023, well beyond reasonable, and next month I will have the car a year and still no resolution. The main reason for spending the money to move up into the Palisade from my minivan was for the towing capacity. Now here we are stuck with a car and we can’t follow thru with the camper purchase as there is no point in buying it and paying for storage of a camper we can’t even use due to Hyundai’s unwillingness to resolve this issue. I have spoken with the parts guy at our dealership and he had no idea when hitch’s would even be available. I could have saved at least a year or more possibly in car payments had I just kept the car I had but again we wanted to purchase a camper. We are stuck using our tent for the foreseeable future and I’m not pleased at all! It’s wrong to sell a product that is supposed to have towing capability but doesn’t and I’ve lost all this time. If they can’t fix it Hyundai should buy back the car or replace it with a newer model that can tow. I feel deceived.

  • James F

    I too purchased a 2023 Hyundai Palisade – traded in a 2023 BMW X5 (with the tow package). Dealer said there would be a short delay getting the tow hitch in to install. It’s now been almost 8 months and I’ve called the dealer every Friday to check. Called Hyundai corporate within first 30 days and many times since then asking them to buy back my Palisade since I can’t tow my small boat, jet skis, or camper. I’ve been spending money renting a UHaul to tow. Sadly, this is unacceptable. Hyundai advertised the vehicle as able to tow, and I have screen shots of their website showing it towing. A third party option requires spicing wires (fire hazard, warranty issues, and will have problems down the road) and cutting the plastic of the bumper (which will not be smooth, and voids the warranty for the bumper). Hyundai has been extremely slow to respond to this issue and needs to do something. I’m going to keep pushing for a buy-back – winter is over and I need to tow.

  • Bruce S

    I purchased a 2023 Palisade with intent of towing my bike and snowbird trailer. Guess what, NO-GO. I wasn’t properly informed of this disfunction either by the dealer. Not a happy camper, I wish they would fix it.

  • dave t

    Towing my airstream was only reason for my purchase of a 2021 Palisade. I only got to use my new Airstream once. I have never received a recall notice on the trailer hitch wiring but when I went to get the oil changed and tires rotated they pulled my fuses (didn’t tell me) just said they performed all recall notices. I found out about the fuses when I looked at my invoice I told them I’ve never had any problem and never got a recall notice (they said they had to pull the fuses for safety reasons) Since it seems that Hyundai is unable to correct the problem with the wiring harness, then I feel they should buy back my Palisade for exactly the same amount I paid for it.

  • Nick F

    I think Hyundai should be held accountable for their negligence. I bought my 2021 palisade limited for the extended seating and the ability to tow. I paid the extra $1000 or so to have the towing capability installed. They removed my fuse without telling me this was their fix. Now I can’t tow anything and it has been like two years with no fix in sight. This is unacceptable. I also don’t feel that they are in any hurry to fix it since the newer models don’t have the issue.

    I have already had a sunroof break and need replaced after 10,000 miles on the vehicle. The dealership messed up my headliner in the process and refused to talk to me after doing an inadequate job of cleaning it.

    If there is a class action for this issue …. I think there should be. Or have them exchange my vehicle for a new one of equal value. If I would have know I was going to have all these issues I would have gone with a different vehicle. Unacceptable.

  • Chris S

    Purchased a 2021 Palisade in March 2021 and negotiated the fitting of a factory tow hitch as part of the purchase price for towing a boat. Hitch was initially fitted with no wiring harness. Waited for that item (back order) and had it fitted. During the last service, it seems the dealer removed the fuse, rendering the tow hitch useless. They did not advise us of this and I only found out after a morning of troubleshooting my non-working trailer lights. So now Since there appears to be no permanent fix available I can either install a new fuse and take the risk of a fire, or simply not tow my boat, which is the whole purpose of having the vehicle…

  • Mary

    2021 Hyundai Palisade with tow package. Dealer told me “they fixed the problem by removing the fuse.” However, I bought this package because I tow routinely, so what am I to do? It is not fixed, they just reduced their liability by reducing fires. Fixing it would mean being able to tow once again. This is just not right or fair to those of us who paid an extra thousand dollars to have this installed by the dealer.

  • Ram V

    Same issue as others. I bought a bigger 2022 vehicle mainly to tow my trailer. They just pulled out the fuse when I went for an oil change. Shame on Hyundai! it’s been close to 5-6 months now. There is no resolution it seems. Absolutely ridiculous that Hyundai is able to get away without a fix.

  • Bobbi J

    Purchased my Palisade in July 2022. Towing was one of the major reasons for purchasing the vehicle. Even bought a trailer the next weekend. Took my car in 2 months later for the recall. Fuse was removed but it was not explained to me that it would disable the towing lights. Found out shortly after that they didn’t work. 3 months later I’m asked to bring it back in for the recall, thinking it’s going to be repaired to only find out that they wanted to take pictures of the underside wiring to aid them in fixing the recall. Still not fixed, still no temporary solution. I am not happy what so ever!

  • Patrick M

    I bought a 2020 Palisade last August 2022. Part of the deal was to have a trailer hitch installed. After I signed the deal I as told that there was a recall on the wiring and they couldn’t install it. Said that this should be a quick fix and would be resolved fast. Here it is 8 months later and still not resolved.

  • Paula S

    I purchased a 2023 Palisade on Jan. 31, 2023, for the purpose of towing. They went so far as to give me a quote on getting it installed by Hyundai. So yesterday, February 27, 2023, I was told that there is no way to wire the lights for the trailer!!! Really. Then was told I could get an aftermarket one installed, but it could nullify my warranty and the additional extended warranty I purchased. Now they will not take the car back since it has been titled. Oh, let me not forget to say, they “just found out about this issue after I purchased the vehicle”.

  • Frank T

    I have the same concern as others. I purchased the Palisade because it came with a hitch, which I needed. It’s closing in on the year mark and they still have no fix. They can design a whole car in that time.
    I need that fix!

  • Graeme K

    Towing was one of the reasons for my purchase of a 2022 Palisade. If I had known in advance that I would not be able to tow with a Palisade, I would have purchased something else. Since it seems that Hyundai is unable to correct the problem with the wiring harness, then I feel they should buy back my Palisade for exactly the same amount I paid for it.

  • Philip B

    I purchased a 2020 Hyundai Palisade with a trailer hitch and have used it many many times towing my utility trailer at times 200 miles round trip with no problem. I have never received a recall notice on the trailer hitch wiring but when I went to get the oil changed and tires rotated they pulled my fuses (didn’t tell me) just said they performed all recall notices. I found out about the fuses when I looked at my invoice I told them I’ve never had any problem and never got a recall notice (they said they had to pull the fuses for safety reasons)

  • Norm L

    I am planning an essential 1500-mile trip using a U-haul. The dealer removed my fuse and refused even to give it back to me claiming they “need to forward it to Hyundai”. The dealer offers no concession to help defray my dilemma.

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