As a trusted name in the automobile industry, Toyota has built its name on quality products and dependable service. However, it recently made headlines for less-than-desirable reasons after getting fined $60 million for practices concerning its credit business.
Recently, the Consumer Financial Protection Bureau (CFPB) imposed a fine against Toyota Motor Credit Corporation for allegedly saddling customers with loans they could not afford. CFPB found that customers were given loans with terms that were more restrictive than what the company verbally agreed upon. Even after the customers made multiple payments, the company would not make adjustments to those loan terms. This created an undue burden on borrowers, many of which were already on tight budgets.
In addition, CFPB found that some Toyota dealers were pushing customers into buying high-priced, optional “payment protection” plans. These plans didn’t provide enough protection for the customers and Toyota was fined an additional $3.75 million for these deceptive practices.
This kind of behavior and disregard for consumer’s rights is unacceptable and Toyota was justly fined by the CFPB. It’s crucial that customers are protected so they are not taken advantage of by companies they trust. Toyota has admitted its wrongdoings and has agreed to adjust loan terms for those affected and will pay a total of $63.75 million in fines.
The takeaway from this episode of drama is that companies need to have more respect for the people they’re serving. Consumers need to be educated about their rights and have access to information that will help them avoid being taken advantage of. Toyota’s recent misdeeds are a reminder of the power companies have over consumers and how important it is to stay vigilant.
As a trusted name in the automobile industry, Toyota has built its name on quality products and dependable service. However, it recently made headlines for less-than-desirable reasons after getting fined $60 million for practices concerning its credit business.
Recently, the Consumer Financial Protection Bureau (CFPB) imposed a fine against Toyota Motor Credit Corporation for allegedly saddling customers with loans they could not afford. CFPB found that customers were given loans with terms that were more restrictive than what the company verbally agreed upon. Even after the customers made multiple payments, the company would not make adjustments to those loan terms. This created an undue burden on borrowers, many of which were already on tight budgets.
In addition, CFPB found that some Toyota dealers were pushing customers into buying high-priced, optional “payment protection” plans. These plans didn’t provide enough protection for the customers and Toyota was fined an additional $3.75 million for these deceptive practices.
This kind of behavior and disregard for consumer’s rights is unacceptable and Toyota was justly fined by the CFPB. It’s crucial that customers are protected so they are not taken advantage of by companies they trust. Toyota has admitted its wrongdoings and has agreed to adjust loan terms for those affected and will pay a total of $63.75 million in fines.
The takeaway from this episode of drama is that companies need to have more respect for the people they’re serving. Consumers need to be educated about their rights and have access to information that will help them avoid being taken advantage of. Toyota’s recent misdeeds are a reminder of the power companies have over consumers and how important it is to stay vigilant.
