Consumer Bureau Action Tracker

CFPB – Toyota Motor Credit Corporation


State

Nationwide

target

Toyota Motor Credit Corporation

Topics

Enforcement, Auto Loans, Fair Lending

The CFPB, along with the Department of Justice, got Toyota to “pay $21.9 million in restitution to thousands of black, Pacific Islander, and Asian customers” whom Toyota “charged higher interest rates than white borrowers.” The complaint alleged that “when the dealer was allowed to decide which customers to charge more, people of color, regardless of their credit, most often paid higher interest.” Toyota did not admit wrongdoing in the settlement.

  • In February 2016, “Toyota’s auto-loan division has agreed to pay $21.9 million in restitution to thousands of black, Pacific Islander, and Asian customers whom the government said were charged higher interest rates than white borrowers.” “The U.S. Consumer Financial Protection Bureau and the Department of Justice had investigated the Toyota Motor Credit Corporation for unfair pricing.” They alleged “that from 2011 up to 2016 borrowers of color regularly paid Toyota between $100 and $200 more in interest rates than a white borrower with similar credit.” [J. Weston Phippen, “How Toyota May Have Started Overcharging Minority Customers”, The Atlantic, 02/03/16]
  • Auto dealers would offer in-house financing and then send the buyer’s information to the Toyota Motor Credit Corporation. “The CFPB found that, when the dealer was allowed to decide which customers to charge more, people of color, regardless of their credit, most often paid higher interest.” Toyota Motor Credit Corporation did not admit wrongdoing in the settlement. [J. Weston Phippen, “How Toyota May Have Started Overcharging Minority Customers”, The Atlantic, 02/03/16]

Status

Inactive or Resolved


2016-CFPB-0002 2/2/2016 2/2/2016

CFPB and DOJ Reach Resolution With Toyota Motor Credit To Address Loan Pricing Policies With Discriminatory Effects
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/toyota-motor-credit-corporation/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $21,900,000
  • Not Available

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