Toyota fined $60 million for lending abuses and credit report tarnishing
Toyota will pay $60 million to settle charges by the Consumer Financial Protection Bureau (CFPB) that it engaged in lending abuses, including preventing car buyers from canceling unwanted product bundles and tarnishing their credit reports. The settlement includes a $12 million civil fine and $48 million in restitution to affected car buyers. Toyota Motor Credit, the automaker's U.S.-based lending arm, was accused of misleading borrowers about the mandatory nature of add-on products, making it difficult to cancel them, and falsely reporting missed payments to credit agencies. As part of the settlement, Toyota Motor Credit agreed to improve cancellation processes and monitor dealers' conduct more closely.