Consumer complaint received 2018-10-18
Company: TOYOTA MOTOR CREDIT CORPORATION
State: AZ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Struggling to pay your loan
Sub-issue: Denied request to lower payments

Complaint:
Creditor Toyota Financial Services - Collection Department Spoke to " XXXX '' employee ID # XXXX - XX/XX/XXXX XXXX XXXX Spoke to XXXX   employee ID # XXXX XX/XX/XXXX XXXX XXXX A Payment extension was requested on our Auto loan with Toyota Financial due to a major unexpected water damage and mold remediation issue in our home that caused us to be displaced from our home for almost 2 weeks. My wife contacted Toyota financial on XX/XX/XXXX advised of the hardship situation and that is was no resolved and making the payment going forward would not be a problem my wife was told her account did not qualify for a payment extension at that time. Toyota Financial stated they could not give her the details as to why the extension was denied but she would receive a letter stating why. On XX/XX/XXXX we received the adverse action letter from Toyota Financial stating her extension was denied due to information obtained in her credit report. This concerned my wife so we called the finance department/collections/account resolution department where we spoke to XXXX ID # XXXX where we were told that the extension requests did not require her credit report to be pulled and the decision was not influenced by the information obtained in her credit report. The Resolution specialist XXXX ID # XXXX then found the letter we had been talking about and said that he was going to escalate the matter to his fraud department and we should call back in a few days to see what the resolution is regarding the letter. I advised XXXX ID # XXXX that we had already requested a supervisor call us back when the extension was denied on the initial call back on XX/XX/XXXX and we still have not received that call and we want answers regarding this now. XXXX stated that they do not pull credit ever that the base their decisions off the original credit pull from the time the contract was originated. When we tried to read him the letter verbatim showing that a credit pull was indeed done he continued to talk over my wife and I becoming very hostile. He said he saw the letter but refused to acknowledge the part of the correspondence that clearly states the credit report was obtained on XX/XX/XXXX. 
XXXX then told us that he wanted the conversation to be kept professional with no interruptions as my wife was explaining the past situations where we asked for callbacks and they never happen, we asked for payment history requests it never happened and she was stating a situation that took place in XXXX, XXXX ID # XXXX repeatedly cut her off and started speaking over her in which at that point he termed the call when told him he wasn't going to talk to my wife that way. 
We called back and spoke to XXXX '' ID # XXXX and advised her the situation regarding the ADVERSE ACTION LETTER regarding the extension request, XXXX ID # XXXX told us that they dont pull credit as a deciding factor for an extension, XXXX ID # XXXX said she can request 1 or 2 month extension and can see if it would be approved, we gave her the reason the account was delinquent and that the matter was a financial hardship that was now resolved. We even offered to accompany the extension with a payment, we were told that both 1 and 2 month extensions were denied and said we would receive a letter as to why. Again I asked if the credit report information or score was a factor in the denial I was told no it wasnt by XXXX ID # XXXX. I went over the letter dated XX/XX/XXXX and that the extension was denied because of the information obtained in my wifes XXXX  CBR dated XX/XX/XXXX. I asked why was her credit pulled a month prior to the delinquency and for what purpose when she did not authorize any new credit pulls, did not call or speak with Toyota in XXXX nor was she informed on XX/XX/XXXX that credit was a factor in the decision. XXXX ID # XXXX then changed her story to now credit is a factor in the extension decision process and if my wife CBR wasn't worthy of an extension thats why it was denied. I asked XXXX ID # XXXX to go over what factors then are used if the reason for delinquency was medical? Would she pull my medical records to prove if the issue had been resolved in order to approve or deny the extension. XXXX ID # XXXX said of course not. I asked her when and under what circumstances will Toyota approve an extensions. We tried to do this last week, we tried to do it XX/XX/XXXX, and XX/XX/XXXX and every time it was denied. In XX/XX/XXXX my wife lost her job and called proactively to get an extension before she received any late fees or accrued additional interest for being past due and she was told that the account had to be over 30 days past due in order to request an extension. Toyota confirmed to my wife that she should call back when she was 30 days past due. In XX/XX/XXXX the account was past due 2 payments because Toyota had misapplied her double payments to principle only instead of the billed principle and interest that was past due. We had a supervisor look over the account and he identified where the payments had been misapplied and said he would call back in 3 days or less to confirm the payments had been adjusted correctly. Instead of a phone call we had a repossession agent try to take the car siting that Toyota put the car out for repo for it being past due for 4 or more payments. Clearly the repo was unsuccessful as we still have the vehicle but we have yet to receive the payment history as requested in XXXX and in XX/XX/XXXX, we never did hear back from a single supervisor as requested. We ultimately had to borrow the funds to avoid a risk of repo while trying to get Toyota to explain themselves about the payment. Each time my wife would make the payments the representatives would confirm that she was not past due just simply paying ahead. It was not until the attempted repo did we find out that they misapplied her payments causing the loan to become past due. We recorded the last 2 conversations on XX/XX/XXXX which lasted over 40 minutes.

Company response to consumer: Closed with explanation