Toyota Motor Credit Corp. fined for preventing borrowers from canceling product bundles
- CFPB orders Toyota Motor’s auto-lending arm to pay $60 million in fines and consumer redress
- Toyota Motor Credit Corp. allegedly prevented borrowers from canceling product bundles that raised their monthly loan payments
- Toyota violated federal law by withholding refunds or refunding incorrect amounts on bundled products
- Toyota unit to pay $48 million to affected customers and a $12 million penalty
- Toyota Motor Credit denies wrongdoing but agrees to the consent order
Federal regulators have ordered Toyota Motor’s auto-lending arm, Toyota Motor Credit Corp., to pay $60 million in fines and consumer redress for allegedly preventing borrowers from canceling product bundles that raised their monthly loan payments. The U.S. Consumer Financial Protection Bureau (CFPB) found that Toyota violated federal law by withholding refunds or refunding incorrect amounts on bundled products, which unduly hurt consumers’ credit reports. Toyota Motor Credit Corp. neither admits nor denies the agency’s findings but consents to the entry of the CFPB’s order, which requires it to pay $48 million to affected customers and a $12 million penalty. Toyota Motor Credit denies any wrongdoing but agreed to the consent order to fulfill their commitment to providing better service to customers. The CFPB alleges that Toyota made it difficult for borrowers to cancel bundled products and services, and failed to provide proper refunds for those who were able to cancel. The unit also allegedly lied to consumer reporting companies about borrowers missing payments.
Public Companies: Toyota Motor (TM)
Private Companies: undefined
Key People:
Factuality Level: 8
Justification: The article provides specific details about the fines and violations imposed on Toyota Motor Credit Corp. by the U.S. Consumer Financial Protection Bureau. It includes statements from both the CFPB and a representative for Toyota Motor Credit. The article does not contain any obvious bias or personal perspective. However, it would benefit from providing more context and background information about the alleged violations and the impact on consumers.
Noise Level: 7
Justification: The article provides information about the fines and consumer redress ordered against Toyota Motor’s auto-lending arm for allegedly preventing borrowers from canceling product bundles. It includes statements from both the U.S. Consumer Financial Protection Bureau and Toyota Motor Credit. However, the article lacks in-depth analysis, scientific rigor, and evidence to support the claims made by the agency. It also does not explore the consequences of these actions on consumers or hold powerful people accountable. Overall, the article contains relevant information but lacks depth and critical analysis.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to Toyota Motor’s auto-lending arm, which is a financial company. The fines and consumer redress ordered by federal regulators may impact the financial performance of Toyota Motor Credit Corp.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article discusses the fines and consumer redress ordered against Toyota Motor Credit Corp. for allegedly preventing borrowers from canceling product bundles. While this event does not involve an extreme event, it is relevant to financial markets as it pertains to a financial company and may have financial implications for the company.
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