FI showroom red and grey logo
MenuMENU
SearchSEARCH

U.S. Agency Penalizes Toyota Motor Credit

Orders it to pay $60 million for running an illegal F&I product bundling scheme.

November 20, 2023
U.S. Agency Penalizes Toyota Motor Credit

Toyota Motor Credit must pay $48 million to effected consumers and a $12 million penalty to the federal agency's victims relief fund.

IMAGE: Pexels

2 min to read


The Consumer Financial Protection Bureau has ordered Toyota Motor Credit Corp. to pay $60 million in consumer redress and penalties for running an illegal scheme that prevented borrowers from canceling product bundles.

Toyota Motor Credit, the U.S.-based financing arm of Toyota Motor Corp., withheld refunds or refunded incorrect amounts on bundled products and knowingly damaged consumers' credit reports with false information, the federal agency said.

Ad Loading...

It directed Toyota Motor Credit to stop the practice, pay $48 million to affected consumers, and assessed a $12 million penalty to be paid to the bureau's victims relief fund.

"Toyota's lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports," said agency Director Rohit Chopra in a press release. "Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers."

The company provides financing for consumers buying cars through Toyota dealerships and offers optional F&I products and services. Products offered by Toyota Motor Credit include:

  • Guaranteed Asset Protection

  • Credit Life and Accidental Health coverage

  • Vehicle service contracts

The cost of the bundled products, financed by Toyota Motor Credit, average between $700 and $2,500 per loan, the agency said.

Ad Loading...

Dealers for Toyota Motor Credit faced complaints from thousands of consumers for lies about product mandates, hiding buried terms, and including them on contracts without their knowledge, the bureau said.

The consumers reported the company made it cumbersome to cancel and failed to provide proper refunds once they did cancel, according to the agency, which said the company also falsely informed consumer reporting agencies about missed payments and neglected to fix known reporting errors.

It said the actions violated the Consumer Financial Protection Act’s prohibition against unfair and abusive acts and practices, as well as the Fair Credit Reporting Act and its implementing regulation.

 

Originally posted on Auto Dealer Today

More F&I

Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Ad Loading...
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →
Photo of executive in a sports coat and glasses
Industryby StaffJuly 2, 2026

Amplify 2026 Billed as Turning Innovation Into Results

Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.

Read More →
Ad Loading...
Woman standing on stage smiling.
F&Iby Lauren LawrenceJuly 1, 2026

Own Your Outcome: F&I in the Digital Customer Journey

Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Ad Loading...
Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →