Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Toyota Motor Credit Corporation is facing a class action lawsuit alleging it breaches its contracts with consumers regarding “gap” protection for vehicle financing.
Toyota Motor Credit Corporation (TMCC) is a company that provides financing to consumers so they can purchase vehicles from an auto dealer.
When the consumer purchases the vehicle, the consumer enters into a retail installment contract with the dealer, and the dealer assigns that contract to TMCC.
Retail installment contracts typically state that the borrower will make periodic payments to the lender for a specified period of time. The RIC also indicates the principal, interest rate, total amount financed and other various charges that are part of the financing plan.
According to the class action lawsuit, TMCC also provides purchasers with the option to purchase “gap” protection, which is a contract that covers the difference between what the insurance carrier will pay and what the consumer actually owes on the car if the car is totaled in an accident.
Plaintiff Marian J. Mensie says she purchased a new Toyota RAV4 in June 2014 that was financed through TMCC for a total of about $41,900. According to the TMCC class action lawsuit, she also paid a separate charge of $695 for gap protection.
In April 2015, Mensie’s RAV4 was reportedly involved in an accident. Her auto insurance company declared the vehicle a total loss and paid TMCC $24,431.45, the value of the vehicle at the time of the accident. Mensie reportedly still owed TMCC approximately $38,100 for the vehicle under the RIC.
“TMCC refunded Ms. Mensie approximately $4,000 for the unused portion of a Mechanical Repair Agreement and a Prepaid Maintenance Agreement,” the TMCC class action lawsuit states. “Thus, there existed an approximate $10,000 ‘gap’ between the $34,100 Ms. Mensie owed TMCC under her RIC and her ‘the actual cash settlement’ from American Family in the amount of $24,431.45.”
However, TMCC did not waive Mensie’s liability for the $10,000 “gap,” the TMCC class action lawsuit says. Instead, the lender waived $7,997.48 and informed Mensie that she was liable for the remaining $2,328.42 owed under the RIC.
Mensie has filed the TMCC class action lawsuit on behalf of herself and a Class of other persons who purchased a TMCC gap contract on or after July 1, 2009. She also seeks to represent an Arkansas subclass. She asserts TMCC breached its gap contract by refusing to fully waive borrower liability in situations involving total loss.
The TMCC class action lawsuit asserts claims for breach of contract and violation of the Arkansas Deceptive Trade Practices Act. Mensie has demanded a jury trial for the case.
Mensie is represented by Michael B. Phillips and Brandon K. Moffitt of Moffitt & Phillips PLLC, Robert A. Horn and Joseph A. Kronawitter of Horn Aylward & Bandy LLC, and Brian Timothy Meyers and Brian C. McCart of the Law Offices of Brian Timothy Meyers.
The Toyota Motor Credit Corporation Class Action Lawsuit is Marian J. Mensie v. Toyota Motor Credit Corporation, Case No. 4:17-cv-00085-DPM, in the U.S. District Court for the Eastern District of Arkansas, Western Division.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
Honda, Hyundai, Kia, Subaru vehicle data collection class action lawsuit investigation
May 17, 2024 | Legal News
29 thoughts onToyota Motor Credit Class Action Takes Issue with ‘Gap’ Protection
Please add me
i should be good for 7 new toyota small trucks all with gap on them.
thanks+
I had one 2019
I recently purchased my leased Toyota and the Toyota employee put GAP insurance in the new contract and explained it as if it was required. I just found out it’s optional. $995. How do I join class action lawsuit?
I purchased gap insurance for my 2011 Toyota tundra in January of 2018
I bought the TMCC’s gap insurance is there any way I can stop the insurance and get my money back?
I bought it June 2017 It now has 2,900 miles on it how do I join this class action suit OK can I ?
I also bought the extended warranty, I’ll keep that
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
gap insurance by toyota is severely over priced. quoted $950 on a three year lease. We went through our own insurance company ( liberty mutual ) and same insurance was less than $30.oo per year. That’s $950 vs $90. Talk about a screwing!!
I have gap on my 2010 Tundra. Dealer said if in accident and totaled gap insurance would pay any and all differece up to satisfying the truck loan.
I recently just bought a 2017 Toyota RAV 4. Two weeks after purchase I was in an accident where my insurance company was wanting to total the car. I was never given the option of Gap insurance and to my dismay would’ve taken it on a brand new car but assumed it came with the purchase. There were a few other things that happened with the purchase of the vehicle where I was misled to believe something that was not correct. Is there a way to get involved in this lawsuit so that I can fight Toyota and the misrepresentation of my purchase? The finance department and the salesman did not do their job with offering the right protection.
i have and heard the same thing for my toyota
They fail to put gap on my 2017 Toyota corrola.
We purchased Gap on our 2010 fj cruiser and were made to buy gap on our leased and subsequently bought 2014 fj cruiser. We never had to use it. Are we still eligible for a refund?
Julie Arcand
WASHINGTON STATE