Toyota Motor Credit overview:
- Who: The Consumer Financial Protection Bureau (CFPB) has ordered Toyota Motor Credit to pay $60 million as part of a settlement.
- Why: The company is accused of selling add-ons to customer loans and withholding funds or refunds from borrowers when they tried to cancel add-on portions of their loans.
- Where: The CFPB made the announcement from its Washington, D.C., office.
Toyota Motor Credit Corp. has been ordered to pay $60 million after it was found to have sold vehicle loan add-ons and then withheld funds or prevented refunds from borrowers who attempted to cancel the add-on portions of their loans.
The Consumer Financial Protection Bureau (CFPB) fine includes $48 million that will go to affected consumers, along with $12 million that will go to the CFPB’s victim relief fund.
There are 27,507 consumer loan accounts through Toyota Motor Credit that were identified as requiring remediation due to inaccurate credit reporting. Toyota Motor Credit had nearly five million customer accounts and more than $135 billion in assets.
“Toyota’s lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports,” CFPB Director Rohit Chopra said. “Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers.”
The company was also found to have provided inaccurate information to consumer reporting agencies and didn’t promptly correct that information when it was found to be inaccurate related to when a consumer returned a leased vehicle.
$32M will go to consumer refunds for GAP and CLAH cancellations, settlement says
The CFPB Toyota settlement order includes $32 million to consumers who did not receive refunds on unearned Guaranteed Asset Protection (GAP) and Credit Life and Accidental Health (CLAH) premiums.
Toyota Motor Credit will also pay over $9.9 million to consumers who attempted to cancel GAP or CLAH coverage but were unable to do so.
The Toyota settlement also includes over $6 million to consumers affected by false information sent to a consumer reporting company, with at least $52,000 to consumers who were not given accurate refunds after canceling a vehicle service agreement.
Toyota Motor Credit last year agreed to pay $59 million to settle claims that the company failed to provide customers with a partial refund of the fees they paid for GAP after they paid off their finance agreements early.
Have you used Toyota Motor Credit when purchasing a vehicle? Let us know in the comments.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Americans past due on auto loans at highest rate in almost 30 years
- Morgan Stanley lawsuit claims restructured Brightline loans to avoid paying lenders
- Nationstar class action claims company denied loan modifications allowed during COVID
- Kabbage lawsuit claims company provides false, misleading PPP loan information
19 thoughts onToyota Motor Credit Corp. to pay $60M to settle unfair practice claims
In 2003 I ordered a brand new 2004 Toyota Highlander. I leased it for a year. Then I financed it with Toyota financial services. I did finance it with all the bells and whistles. I did pay it off early. I have all of my documents still I am still driving that Toyota today. Feel free to contact me to see if I am a part of this lawsuit.
I was financed by Toyota Financial for two cars 2011, 2014 and 2015
Toyota Finance took out two monthly payments in February. After about 30 minutes dealing with automated phone systems and inaccurate phone numbers , I finally talked to a real person inTexas who had no excuse for the double payment and said I would have the second payment by check by the end of March..more than a month after taking the payment in error. My bank said this not uncommon with Toyota and I should check my account always for that.
I purchased a 2021 Toyota Corolla Hybrid, they sent me into the finance dept only it was more like a lamb to the slaughter by the time he was done there was an added $10,000.00 plus additional warranties; bringing my loan payment to $560.03. In time I began to question why I needed such excessive coverage and every time I called Toyota Financial I was given a run around as to why I NEEDED these warranties, eventually I found a very hard working car insurance agent who advised me to remove the gap immediately as I am covered at pennies to the dollar on my insurance policy. So this year I took my car in for service and low and behold I was swarmed upon by the financial team at Toyota of Huntington Beach. From the sales guy to every interaction I was lied to about the truth that my loan being upside down, they hid this fact tacking it on to new lease and taking possession of my car saying it was my down payment and adding it to the the lease even furthering my financial burden, their tactics are predatory, all the while only saying to me I now have a shiny new upgrade; What could be better???? I’m only giving you the Cliff Note version, it’s horrible. I’m now paying $870.99 and after the 3 year lease is up at that rate I will have paid $31,355.64 and still owe the same $31,355.00 Only now it is a used car worth much less, this time horribly UPSIDE DOWN AS THEY TACKED THE ORIGINAL AMOUNT WITHOUT EVER DISCLOSING ANY OF THIS TO ME; THEY WERE ALL IN ON IT AND BONUS I GOT TO HEAR THE FINANCE GUY TALK INCESSANTLY ABOUT HIS LOVE LIFE TRYING TO ILLICIT MY OPINION AS TO INGRATIATE ME AND DISTRACT MY ATTENTION AWAY FROM THEIR FRAUD!!!! THEY NEVER WHEN OVER IN ANY DETAIL EXACTLY WHAT WAS DONE OH AND I LOST MY ORIGINAL CAR AS THEY SAID IT WAS MY DOWN PAYMENT!!!!!
I purchased a 2018 Toyota Highlander in March 2021. I have had several issues with misleading information, incorrect credit reports, I have been charged incorrect “late fee” charges almost 1000 dollars. I also just learned last week that when I signed my sales contract they put the wrong info regarding our trade vehicle that was purchased 2 weeks prior and returned due to safety issues. I would like info on how to join lawsuit or to speak with a lawyer regarding the issues I have had with Toyota.
I canceled a Toyota warranty yesterday that I paid for separately from my financing. The dealership told me that the refund will go against my lien but I didn’t finance the warranty; I paid for it separately. Toyota falsified the contract and said I financed it despite my credit card statement and a receipt THEY produced showing otherwise. The dealership is unable to fund me and Toyota Financial is unable to refund me and said the credit will apply towards my loan since the dealership falsified documents. I have reached out to the franchise owner and not heard back. I filed a complaint with the BBB as well. Please help
I had leased a Toyota Sedan
in 1998. How can I find out if this GAP fees were added to my monthly payments? After the leased I finance the same vehicle at the same monthly amount for another four years. How can I join this class action lawsuit as I was a customer with a very high monthly payment even though I had given them a deposit of $5,000. I always felt like they gave me a scam deal. Ty
I bought a used 2016 Toyota 4 Runner in 2022 and had the extended warranty that I tried to cancel. Unfortunately my wife got into an accident in January of 2023. Toyota’s GAP insurance did not fully pay off my vehicle and immediately reported non payment to my credit report which caused me a great deal of mishaps and money that I am still currently trying to resolve. Every time
call Toyota to have the mis information removed feom my credit report, they tell me that there is nothing they can do. PLEASE tell me how I can join the Class Action Law suit.