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.
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11 thoughts onToyota Motor Credit Corp. to pay $60M to settle unfair practice claims
I paid my vehicle off June 2023 and never received my title. They just repossessed my vehicle and made me pay for it. Admitted on the phone that that messed up. I recorded every single phone call and I can’t find a single person to listen to me or just bring me vehicle back since I OWN IT.
I have an 2018 rav 4 I asked them about my warranty they told me that I don’t have the premier but they gave me the 3 option to for my payments I picked the highest payment for the warranty I guess I was wrong I try to explain to her when I took it to Toyota dealership she said I was wrong
Question what can I do with one mirai limited 2022 first her autopilot is the worst system don’t work correctly already drop the car to check but they said is fine also the trade value of the mirai cars is ridiculous
I bought a Toyota Tacoma new with that company. It was a nightmare for me with all the services I received and sold back to them my Tacoma and it was another nightmare. Include me in the settlement please
Thanks
We got a 2020 RAV4 XSE last year in March. Made payments on time. We found out after having the vehicle for a month or so that it was in a front end accident that had 80% damage done to it prior to us getting it and it had hail damage which you could see. None of that was disclosed to us from the start. Toyota never gave us a copy of the carfax. I did try to get an explanation from the GM of Carlson Toyota and all she said was “well I don’t have to fix this issue but you guys need to file an insurance claim. I don’t have to help you”. However come 2 months ago our suv was being fixed ( my husband in the military was on his way home and was in an accident. We tried explaining that to the dealership and Toyota Financial Services and all they would ask me is “did your husband end up in a body bag? If not we need money”. I paid TFS 4 months worth of payments got an email confirmation from them saying thank you for your payment and they still sent out a repo truck driver to take our car. TFS said that our vehicle is only worth $20,000 and we owe $50,000 still once they sell it we need to have money to pay them. I need some advice on what I should also be doing? Cause at this point I’m going without a vehicle to work, and TFS destroyed our credit by not telling the credit bureaus that we made 4months worth of payments. Our Toyota was a certified Toyota that should not ever been sold to us.
So my fiancee and I got a Toyota tundra 2020 In late 2019 we were making payments and I tried to make several payments they kept sending only half payments back to me then demanding id pay or get vehicle impounded we were paying and there website when I sign in shows all our attempts to pay and them only partial refunding payments also the impounded vehicle for non payment even after we spend hours and hour for about a month to straighten out the issues they refused to let me stop all add on services. And even charged us for them after they took vehicle. It says we paid vehicle off but after they took it our credit was so bad they reported we missed or was late every payment not true. And we owed more on the credit report then we owed all together. We’ve been reaching out to Toyota they keep forwarding calls to a voice-mail I never get calls back I don’t know what I should do next. Also it shows we are in process of buying a Lexus which we are not. And that we have vehicle still we haven’t had vehicle since 2021 I believe and we can’t get another loan do to all negative reports they added pleasesomeone let me know whats my best course of action from this point on.
In 2022 my son bought a car from Toyota, they ran my credit without me even filling out a credit application as I wasn’t going to be on the loan. In Oct 2023, my son traded in his car for a leased 2023 BZ4X, again they ran my credit report along with my sons but I never filled out a credit application as I wasn’t going to be on the loan. When my son went into finance, that’s when we found out I was the primary leaser and my son was secondary. The damage was done, so I finished with being on the lease. My son has better credit then I so there was no reason I should have been on the lease, he’s also 24 years old.
I am currently dealing with issues with Toyota Motor Credit attempting to make me pay extra for services that were already covered and they won’t elaborate on the extra charges. I have sent multiple letters out.
I currently have a loan with Toyota motor credit which they put an they put a massive finance charge on and try to hide it in the APR and I have four warranties with cna and two warranties with rpa. I don’t own four of the vehicles that they say I have warranties on. They refused to fix it or address the issue. They just use different arms of the same Bank to hide it.
I requested a refund on my extended warranty and other coverage for my 2019 Toyota Mirai, but they gave me a run around. Do I qualify for part of the settlement?
I’ve been trying to get reimbursed for my warranties for months. I called and emailed the finance manager several times before anything got done. I Still am waiting for Toyota motor credit to send me a check.