Consumer complaint received 2023-12-17
Company: TOYOTA MOTOR CREDIT CORPORATION
State: NV
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Loan sold or transferred to another company

Complaint:
15 U.S. Code 1635 - Right of rescission as to certain transactions ( a ) Disclosure of obligors right to rescind Except as otherwise provided in this section, in the case of any consumer credit transaction ( including opening or increasing the credit limit for an open end credit plan ) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this subchapter, whichever is later, by notifying the creditor, in accordance with regulations of the Bureau, of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Bureau, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Bureau, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section. ( b ) Return of money or property following rescission When an obligor exercises his right to rescind under subsection ( a ), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditors obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court ( c ) Rebuttable presumption of delivery of required disclosures Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter by a person to whom information, forms, and a statement is required to be given pursuant to this section does no more than create a rebuttable presumption of delivery thereof. 

( d ) Modification and waiver of rights The Bureau may, if it finds that such action is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of any rights created under this section to the extent and under the circumstances set forth in those regulations. 

( e ) Exempted transactions ; reapplication of provisions This section does not apply to ( 1 ) a residential mortgage transaction as defined in section 1602 ( w ) [ 1 ] of this title ; ( 2 ) a transaction which constitutes a refinancing or consolidation ( with no new advances ) of the principal balance then due and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest in the same property ; ( 3 ) a transaction in which an agency of a State is the creditor; or ( 4 ) advances under a preexisting open end credit plan if a security interest has already been retained or acquired and such advances are in accordance with a previously established credit limit for such plan.

( f ) Time limit for exercise of right An obligors right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any other disclosures required under this part have not been delivered to the obligor, except that if ( 1 ) any agency empowered to enforce the provisions of this subchapter institutes a proceeding to enforce the provisions of this section within three years after the date of consummation of the transaction, ( 2 ) such agency finds a violation of this section, and ( 3 ) the obligors right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligors right of rescission shall expire three years after the date of consummation of the transaction or upon the earlier sale of the property, or upon the expiration of one year following the conclusion of the proceeding, or any judicial review or period for judicial review thereof, whichever is laterbeing accurate for purposes of this section if the amount disclosed as the finance charge does not vary from the actual finance charge by more than {$35.00} or is greater than the amount required to be disclosed under this subchapter.

( 3 ) Right of recoupment under State law Nothing in this subsection affects a consumers right of rescission in recoupment under State law.

( 4 ) Applicability This subsection shall apply to all consumer credit transactions in existence or consummated on or after XX/XX/XXXXXXXX 

( Pub. L. 90321, title I, 125, May 29, 1968, 82 Stat. 153 ; Pub. L. 93495, title IV, 404, 405, 412, Oct. 28, 1974, 88 Stat. 1517, 1519 ; Pub. L. 96221, title VI, 612 ( a ) ( 1 ), ( 3 ) ( 6 ), Mar. 31, 1980, 94 Stat. 175, 176 ; Pub. L. 98479, title II, 205, Oct. 17, 1984, 98 Stat. 2234 ; Pub. L. 10429, 5, 8, Sept. 30, 1995, 109 Stat. 274, 275 ; Pub. L. 111203, title X,1100A ( 2 ), July 21, 2010, 124 Stat. 2107. )

Company response to consumer: Closed with explanation