Toyota Motor Credit settles with CFPB and DOJ

The Consumer Financial Protection Bureau has announced that the CFPB and the Department of Justice resolved an action with Toyota Motor Credit Corporation (TMCC), under which TMCC will change its pricing and compensation system to substantially reduce dealer discretion and accompanying financial incentives to mark up interest rates. As part of the Bureau's order filed as an administrative action, TMCC is also required to pay up to $21.9 million in restitution to thousands of African-American and Asian and Pacific Islander borrowers who paid higher interest rates than white borrowers for their auto loans, without regard to their creditworthiness, as a result of its past practices. TMCC will also hire a settlement administrator to distribute those funds.

• CFPB Consent Order
• Justice Department announcement
• Justice Department Complaint
• Toyota Consent Order