Toyota Financing Arm Rolls Through $60 Million Speed Bump for Multiple Violations

Toyota's Financing Division Slapped with $60 Million Fine for Multiple Violations

Oh, Toyota, Toyota, Toyota. What have you done this time? It seems that your U.S.-based financing arm has gotten itself into quite a pickle. They’ve been hit with a whopping $60 million fine by the Consumer Financial Protection Bureau (CFPB). Ouch!

So, what did they do to deserve such a hefty punishment, you ask? Well, it turns out that they were playing some dirty tricks when it came to auto buyers and their car loans. They were preventing these poor souls from canceling unwanted add-ons to their loans. Talk about highway robbery!

But that’s not all. The CFPB also found that Toyota Motor Credit Corporation (TMCC) violated not one, but two laws. They broke the Consumer Financial Protection Act and the Fair Credit Reporting Act. Tsk, tsk.

Now, let me break it down for you. TMCC was making it “unreasonably difficult” for customers to cancel bundled coverage products like Guaranteed Asset Protection and Credit Life and Accidental Health insurance. It’s like they were building a maze of red tape just to keep people from canceling. Truly diabolical.

And it gets worse. TMCC was also withholding or issuing incorrect refunds to customers who had paid off their loans or ended their leases early. I mean, come on, Toyota. Can’t you get your act together?

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But wait, there’s more. TMCC was falsely reporting customer accounts as delinquent to credit reporting agencies, even though the vehicles had already been returned. Talk about kicking someone when they’re down.

So, what’s the punishment for this little escapade? Well, Toyota Motor Credit is going to have to shell out $48 million to consumers. That’s right, millions of dollars going back to the poor souls who didn’t receive refunds, couldn’t cancel their coverage, or had their credit reports tarnished. Justice served, but at a hefty price.

But that’s not all. TMCC also has to clean up its act. They have to stop these illegal practices and make it easier for consumers to cancel coverage. They’ll need to keep an eye on their dealer partners who sell these add-ons and let consumers know how they can cancel or remove them.

Oh, and there’s a fine, of course. TMCC has to cough up $12 million to the CFPB’s victims relief fund. That’s a pretty penny right there.

CFPB Director Rohit Chopra didn’t mince words when he said, “Toyota’s lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports.” Burn, Toyota. Burn.

But wait, let’s not forget what the CFPB is all about. They’re the ones who send about 25,000 complaints about financial products or services to companies for a response each week. That’s a whole lot of complaints. And most companies have to respond within 15 days. Sounds like a fun job, right?

So, if you ever find yourself in a financial pickle, you can submit a complaint to the CFPB. Just visit their website or give them a call at (855) 411-CFPB (2372). They’ve got your back.

And hey, if you want to read more juicy news, check out these related articles:

• Toyota Recalls 1.85 Million RAV4s: What To Know
• Leasing Firm ‘Tricked’ Shoppers, Ordered to Pay into Victims Relief Fund
• CFPB Slams Credit Repair Companies
• CFPB Sues Snap Finance, Prehired for Allegedly Deceiving Consumers

Ah, the world of finance never ceases to amaze. Stay tuned for more thrilling tales of money, mischief, and mayhem.

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