Consumer complaint received 2023-10-19
Company: TOYOTA MOTOR CREDIT CORPORATION
State: TX
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
On XX/XX/XXXX I purchased a XXXX Toyota XXXX XXXX from XXXX Toyota of XXXX. My mom accompanied me during this transaction. In order to make the purchase happen, I traded in my XXXX XXXX XXXX for {$6000.00}. While completing the disclosures and signing documents, I was asked if I would like Guaranteed Asset Protection ( GAP ) coverage. I originally said no due to me not having the cash to cover the expense and did not want to include the GAP in my financing since it would be making the whole transaction more expensive. At that moment, my mom then offered to pay the GAP coverage for {$680.00}. I agreed for her to pay for the coverage. I never once agreed for the coverage to be in my financing. In that moment, the financing manager at the time had me sign some documents and my mom pay for the GAP coverage. It has now been 2 year of me owning the car and I am now seeing that The GAP coverage was included in my financing. The Dealership XXXX Toyota of XXXX did charge my mom the {$680.00} and I have a watermarked receipt stating the amount paid. I spoke with the Lien Holder Toyota Motor Credit Corporation also known as Toyota Financial services about this issue. I explained that the Truth in Lending disclosures were not 100 % accurate and I would like to speak to a supervisor about the issue. The problem was that Toyota included the GAP coverage in my financing and took my mothers money and put it towards the cash down payment. Bringing the Total Cash Down payment to {$6700.00}. The Customer service agent I spoke to explained that it would take the supervisor 24-48 hours to call me back and I accepted that. It has been a few weeks and I still have not spoken to a supervisor. After a few calls to the customer service department, I was advised to speak with the dealership about the issue. I then called the finance department at XXXX Toyota of XXXX where I spoke to XXXX. He proceeded to break down the math of the Itemization of Amount Financed in the Truth in Lending portion of my contract. He took the Cash price of the car from Line 1 which is {$36000.00}. He had me the subtract the total down payment of {$6700.00} from Line 2. Which equaled {$30000.00}, the same number reflecting on Line 3 of the Itemization of Amount Financed. He then had me add the GAP coverage of {$680.00} from Line 4C to the Unpaid balance from line 3, {$30000.00}. Bringing the Total unpaid balance to {$30000.00}. Then he started to include the taxes and fees : {$58.00} for the Dealer inventory tax on line 4F, {$130.00} for the license fee from line 4I, {$33.00} for Government certificate of title fee on line 4J, {$28.00} for Government inspection fee on line 4K, and {$140.00} for a documentary fee on line 4M. Adding all the fees, taxes, and GAP coverage brings the total amount financed to {$31000.00}.

I am only explaining how he broke the math down to show that the amount financed does include the GAP coverage. If I paid for the GAP coverage in cash then the total amount financed would be {$680.00} less than {$31000.00}. This would have put me at {$30000.00} for the total amount financed. This amount would have made the Finance charge a different number also. Making the entire Truth in Lending disclosure inaccurate. I explained this to XXXX the Finance manager and his words were " I don't know what to tell you. '' He continued to explain how the {$680.00} down payment cancels out the {$680.00} that was apart of total amount financed. 

Which still does not make sense, the amount financed compounds on an APR of 9.54 %, making the {$680.00} that is being financed more expensive. Something I was trying to avoid. This is why I originally said no to GAP coverage and why my mom ended up paying cash for it. XXXX did say he could refund the cash payment of {$680.00} for the GAP coverage but he did say he couldn't do anything about the Amount Financed including the GAP coverage. 

I have sent a notice or rescission to XXXX Toyota of XXXX and Toyota Motor Credit Corporation on the basis of unfair and deceptive practices. I sent two Affidavit of Truth 's stating my truth. A full notice of rescission stating the laws they broke by not giving me notice of my right to rescind on a contract. Which on the basis of fraud I believe I have 3 years to do so. I have sent a letter revoking all of my signatures and voiding my contract with both parties stated above. 

Today XX/XX/XXXX I received mail from Toyota Motor Credit Corporation stating that they will not acknowledge my notice to rescind because I have no right to do so. They mentioned that they are familiar with my " Law theory '' but it has no standing. I specifically mentioned that they didn't not abide by the Truth in Lending Act by not being clear and concise. The basis of my rescission was due to the unfair and deceptive practices that they partook in. 

I started this rescission process on XX/XX/XXXX. That was the date I mailed out the first wave of notices. The First wave included a Cease and Desist Letter but I was told I sent the information to the wrong address and to send it to their legal department at XXXX XXXX XXXX XXXX, TX XXXX. I then sent a Cease and Desist letter and a second Affidavit of Truth on XX/XX/XXXX along with the rest of the documents in this complaint to the Legal department. Since then I have received two reply 's from Toyota Motor Credit Corporation. One on XX/XX/XXXX responding to the Cease and Desist Letter stating that they will comply but I did not receive it until XX/XX/XXXX. And the second being a response to my Notice of Rescission. This one was dated XX/XX/XXXX. I did not get it on that date. I received it XX/XX/XXXX. 

I would like an answer about the overcharging of my GAP coverage. I do not believe I should be liable for the extra charges on my financing. And Toyota does not seem to want to work with me to fix the issue. Even in the response to the rescission I sent, Toyota ended the letter with I am behind on my payments and need to call Customer service to work out a payment plan. I find the overcharge to be a material breach of the contract and I would not be liable for any payment on the property.

Company response to consumer: Closed with explanation