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

Photo of car tire and the tread mark it left in snow
F&Iby Hannah MitchellApril 29, 2026

Not Just Any Tire Will Do

More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.

Read More →
Photo of robot holding a laptop
F&Iby Hannah MitchellApril 27, 2026

How AI Will Drive the Next Wave of Innovation in Finance & Insurance

It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.

Read More →
Photo of notepad and pen next to computer keyboard on desktop
F&IApril 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Read More →
Ad Loading...
Photo of external keyboard on office deak next to window
F&IApril 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Read More →
Woman in casual clothing sitting at a desk
F&Iby Rick McCormickMarch 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Read More →
Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →
Ad Loading...
REGISTER FOR EFI 2026
F&Iby Kate SpataforaMarch 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

Read More →
F&Iby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Ad Loading...
F&Iby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →