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CFPB and the Justice Department on Tuesday announced a $21.9 million settlement with indirect auto lender Toyota Motor Credit.

The company will be required to pay $21.9 million in restitution to minority borrowers who CFPB alleges were made to pay higher interest rates on auto loans than white borrowers without regard to creditworthiness.

"We are dedicated to promoting fair and equal access to credit in the auto finance marketplace," said CFPB Director Richard Cordray. "Toyota Motor Credit is among the largest indirect auto lenders, and we commend its industry leadership in shifting to reduced discretion to address the significant fair lending risks."

Toyota Motor Credit will also be required to reduce dealer discretion on how much loans can be marked up. It will also pay for a settlement administrator to distribute the restitution funds.

NAFCU supports fair lending but the association has raised concerns about the level of objectivity employed in the bureaus' methodology for identifying violations. The bureau does not have direct supervisory authority over auto dealers under the Dodd-Frank Act.