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CFPB fines Toyota Motor Credit $60M for illegal conduct
The CFPB Monday ordered Toyota Motor Credit Corporation to pay a total of $60 million in consumer redress and penalties – $48 million to harmed consumers and $12 million into the CFPB’s victims relief fund. The bureau claimed the company “operated an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments.”
The CFPB’s announcement noted “thousands of consumers complained to Toyota Motor Credit that dealers had lied about whether these products were mandatory, included them on contracts without the borrowers’ knowledge, or rushed through paperwork to hide buried terms.” The actions violated the CFPBs prohibition against unfair and abusive acts as well as the Fair Credit Reporting Act.
NAFCU will continue to monitor CFPB enforcement actions and update credit unions via NAFCU Today.