Toyota’s lending arm illegally withheld refunds and tarnished credit reports

  • CFPB orders Toyota to pay $60 million for blocking customers from canceling insurance products
  • Toyota bundled GAP insurance, Credit Life, Accidental Health, and vehicle-service agreements
  • Customers complained about dealers lying about the products being mandatory
  • Toyota’s lending arm illegally withheld refunds and tarnished credit reports

The Consumer Financial Protection Bureau (CFPB) has ordered Toyota’s U.S.-based auto-financing subsidiary to pay $60 million to consumers for illegally preventing them from canceling insurance products. The company bundled GAP insurance, Credit Life, Accidental Health, and vehicle-service agreements, and customers complained about dealers lying about the products being mandatory. Toyota’s lending arm also illegally withheld refunds and tarnished credit reports. This action by the CFPB aims to hold auto lenders accountable for cheating their customers.

Public Companies: Toyota (TM)
Private Companies: undefined
Key People: Rohit Chopra (CFPB Director)

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Factuality Level: 8
Justification: The article provides specific details about the Consumer Financial Protection Bureau ordering Toyota’s auto-financing subsidiary to pay $60 million to consumers for illegally blocking insurance cancellations. It includes quotes from the CFPB director and mentions the specific insurance products involved. However, it lacks additional sources or perspectives to verify the claims made in the article.

Noise Level: 3
Justification: The article provides relevant information about the Consumer Financial Protection Bureau ordering Toyota’s auto-financing subsidiary to pay $60 million to consumers for illegally blocking insurance cancellations. It includes quotes from the CFPB Director and mentions the specific insurance products involved. However, the article lacks in-depth analysis, evidence, and actionable insights. It also does not explore the consequences of the decision on those who bear the risks.

Financial Relevance: Yes
Financial Markets Impacted: Toyota’s U.S.-based auto-financing subsidiary

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the Consumer Financial Protection Bureau ordering Toyota’s auto-financing subsidiary to pay $60 million to harmed consumers. However, there is no mention of an extreme event.

Reported publicly: www.marketwatch.com