U.S. Authorities Accuse Toyota Arm of Discriminatory Loan Pricing
Toyota Motor Credit Corp, the lending arm of Toyota Motors Corp, could face an enforcement action from U.S. authorities over its pricing of auto loans through dealerships and could be forced to reimburse borrowers or pay a fine, the company said late Friday, reported Reuters. On Nov. 25, the U.S. Department of Justice and the ... Read More »
Toyota Motor Credit Corp, the lending arm of Toyota Motors Corp, could face an enforcement action from U.S. authorities over its pricing of auto loans through dealerships and could be forced to reimburse borrowers or pay a fine, the company said late Friday, reported Reuters.
On Nov. 25, the U.S. Department of Justice and the Consumer Financial Protection Bureau sent a letter to Toyota Motor Credit, saying that its auto lending practices “resulted in discriminatory pricing of loans to certain borrowers in contravention of applicable laws,” the company said in a filing with the U.S. Securities and Exchange Commission.
Unless Toyota Motor Credit agrees to a resolution with the agencies voluntarily, which would include “monetary relief” in addition to changes to its loan pricing policies, the Justice Department and the CFPB were prepared to bring an enforcement action, the filing said.
Toyota Motor Credit added it would work with the agencies to reach a resolution.
A spokesman for the CFPB declined to comment. A spokeswoman for the Department of Justice did not immediately respond to a request for comment.
In December 2013, Ally Financial Inc (ALLY.N) was forced to pay $98 million to resolve similar discriminatory loan pricing charges from the Justice Department and the CFPB.
More Industry

California Calling? What's Up With the State's New CARS Act?
Should auto dealers outside of California be concerned about its new price-transparency law? Yes, and you can guide them in the right direction.
Read More →
Tennessee Transaction Latest in Buy-Sell Flurry
Four stores move from a longtime local family business to one of the country’s biggest automotive groups as part of the industry’s continued consolidation.
Read More →
SUV Joins Safety Rankings
Thanks to a seat belt redesign, the Nissan Kicks has earned a Top Safety Pick award from the Insurance Institute for Highway Safety.
Read More →
Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →