Popular New York State Car Company May Owe You A lot Of Money
A popular car company has been ordered to pay $60 million over an "illegal scheme" and "knowingly tarnished consumers’ credit reports with fake information."
This week, the Consumer Financial Protection Bureau (CFPB) ordered Toyota Motor Credit Corporation to pay $60 million.
CFPB Orders Toyota Motor Credit to Pay $60 Million
The fee is for "operating an illegal scheme to prevent borrowers from canceling product bundles that increased their monthly car loan payments."
Toyota withheld refunds or refunded incorrect amounts on the bundled products, officials say.
The company also "knowingly tarnished consumers’ credit reports with false information," according to the CFBP.
The CFPB ordered Toyota to pay $48 million to impacted customers, $12 million to the CFPB’s victims relief fund and stop its alleged unlawful practices.
Toyota Accused Of Illegal Activity
"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 stated. "Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers."
Thousands of Toyota drivers complained that the company lied about whether bundled products were mandatory.
Customers also said the bundled products were included without their knowledge, buried in the paperwork, or employees rushed through the paperwork.
"Toyota Motor Credit devised a scheme to retain the revenue from these products by making it extremely cumbersome to cancel and then failed to provide proper refunds for consumers who succeeded in canceling. The company also falsely told consumer reporting companies that borrowers had missed payments, and it failed to correct consumer reporting errors it knew were wrong," the CFPB states.
Toyota denied any wrongdoing telling Newsweek:
Toyota Motor Credit Corporation (TMCC) is committed to doing what's right for our customers and strives to consistently follow all federal and state laws in our sales, customer service, and administrative practices. TMCC admitted to no wrongdoing but agreed to the terms of the consent order with the Consumer Financial Protection Bureau (CFPB) to fulfill our commitment to continually provide ever-better service to our customers
Impacted customers should be notified in the near future. Payments will vary, according to Consumer Affairs.
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Gallery Credit: Bobby Welber