A recent Toyota class action claims that the auto company’s credit division wrongfully repossesses cars from consumers under bankruptcy protections.
Plaintiff Robert M. Muswaya reportedly filed bankruptcy in June 2019. During this filing, his 2018 Toyota Corolla was reportedly covered by an “automatic stay” which prevents it from being repossessed. Because the vehicle became property of Muswaya’s bankruptcy estate, it was allegedly covered by this automatic stay.
The stay reportedly prohibits “any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate” as well as “any act to create, perfect, or enforce any lien against property of the estate.”
Despite this stay, Toyota Motor Credit Corp. allegedly repossessed the vehicle in September without authorization from the bankruptcy court.
“[Toyota’s] conduct demonstrates a blatant disregard of the rights of bankruptcy debtors and the mandates of the Bankruptcy Code,” the Toyota class action argues.
The company, who issued a loan to Muswaya for the vehicle, allegedly refused to return the vehicle when requested. As a result, Muswaya has allegedly been forced to spend $2,307 on alternative transportation such as rental cars and cab fares.
“As a result of [Toyota’s] willful, malicious and reckless repossession of plaintiff’s vehicle, plaintiff sustained significant damages,” the Toyota class action lawsuit claims. “As a result of [Toyota’s] unlawful repossession, plaintiff was deprived of his primary means of transportation.”
Due to the lack of transportation, Muswaya was allegedly unable to make it to work which caused him to miss out on wages. In addition to the financial damages sustained due to the repossession, Muswaya reportedly suffered “significant emotional distress, mental anguish, anxiety, loss of time, and extreme inconvenience.”
Muswaya argues that Toyota willfully violated bankruptcy regulations by repossessing the vehicle. According to the Toyota class action, the automotive company had actual knowledge of Muswaya’s bankruptcy filing and repossessed his vehicle while operating under internal policies which “run afoul” of bankruptcy codes.
The Toyota class action lawsuit seeks actual damages, punitive damages, court costs, and attorneys’ fees. The complaint also seeks a court order enjoining Toyota from committing any further violations of U.S. bankruptcy law.
Muswaya seeks to represent a Class of consumers who had their vehicle repossessed by Toyota within the last three years after declaring bankruptcy. Class Members are eligible if Toyota repossessed the vehicle without seeking relief from an automatic stay or before the automatic stay expired.
The exact number of Class Members isn’t known, but Muswaya believes that there could be thousands of consumers in the same situation as him.
Did you have your vehicle repossessed by Toyota despite an automatic stay during bankruptcy proceedings? Share your experiences in the comment section below.
Muswaya and the proposed Class are represented by Mohammed O. Badwan and Joseph S. Davidson of Sulaiman Law Group Ltd.
The Toyota Repossession Class Action Lawsuit is Muswaya, et al. v. Toyota Motor Credit Corp., Case No. 4:19-cv-00768, in the U.S. District Court for the Eastern District of Texas.
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6 thoughts onToyota Class Action Says Cars Unlawfully Repossessed
Repossessed my car jan 1 2021 after i late 3 payment during pendamic in 2020 and forced me to pay 3500$ to release my car by western union then send me a latter to get my car from the placed paid payments +late fee plus repossession fee + plus parking
Made payment in full and they repossessed the car and attempted to force me to pay repossession fees when I’d already paid.
I had a bankruptcy ordered from the courts and they still repossessed my car against mine and the courts will. It is also still in my credit report which has ruined my credit not to mention I paid 20,000 dollars towards the vehicle original price which was 33,000. Not only did the steal my car but made a ton of money off of me and then sold my car for 18,000.
I filed chapter 7 bankruptcy, I affirmed my auto loan, changed my mind and returned the
Vehicle effectively rescinding the reaffirmation agreement, Toyota Motor Credit, isn’t letting me rescind the reaffirmation, resulting in negative credit reporting, not allowing me a fresh start like chapter 7 was designed?
Yes they repossess my car and I was very unhappy about it they would not work with me about my payment and it was coming the next following Friday and they repossess my car the same day that I made a phone call I came out looking for my car and my car was not there ..It happened at the beginning of this year.