Consumer complaint received 2016-11-11
Company: TOYOTA MOTOR CREDIT CORPORATION
State: WA
Product: Consumer Loan
Sub-product: Vehicle loan
Issue: Managing the loan or lease

Complaint:
We bought a new Toyota, XXXX XXXX and were pre approved through our credit union. At the dealer they told us they work with the credit union and will take care of the paperwork for us right there. We signed the papers and then a few days later our credit union called to ask if we were going to still need the loan. At that time we were told nothing was sent to them for a loan for us from the dealer, and in subsequent talking with the dealer we were told there was a 'misunderstanding ' and our loan was with Toyota financial. I told them we wanted to go through our credit union, and he called us back later and said he was able to get the loan rate changed to 2.2 % interest, which was 1 % below what the credit union would give us. At this point, partly to save us a hassle, we agreed to stay with Toyota at the new rate. We were told that there was no penalties for early pay off. 
We got a statement saying our payment amount should be {$540.00}, the finance charge should be {$2500.00}, the APR should read 2.2 % on the total sales price should be {$42000.00}. First payment date was for XXXX/XXXX/XXXX. for an outstanding balance of {$36000.00}. I sent in a payment of {$600.00} on XXXX/XXXX/XXXX. My next statement was dated XXXX/XXXX/XXXX and said my next payment due was for {$490.00} due on XXXX/XXXX/XXXX with an outstanding balance of {$36000.00}. Said last transaction date was XXXX/XXXX/XXXX for {$600.00}. There was nothing on that statement of what my interest charge was, nor how much of that {$600.00} went to interest and how much went to the principle. I made a new payment of {$700.00} on XXXX/XXXX/XXXX. On XXXX/XXXX/XXXX I had n't gotten a new statement, but wanted to make sure I got my payment in in time and so sent in another payment of {$700.00} on XXXX/XXXX/XXXX. I am using a bill pay option through my credit union for my payments to make things easier for me. The next statement I received was dated XXXX/XXXX/XXXX and simply stated last transaction amount was {$700.00} dated XXXX/XXXX/XXXX. 3 monthly payment made. Next payment was due on XXXX/XXXX/XXXX for {$190.00}. with an outstanding balance of {$35000.00} Also hd a line that said regular payment amount is {$540.00}. There was again no mention of the percentage rate nor how much of my payments went to interest and principle. At this point I became concerned that something was amiss here. I called the Toyota financial and found out through my questioning that only the amount said due on my statement was put toward my loan. The rest was being kept to make my next payment because I had 'over paid '. That is why my next payment was n't due until XXXX/XXXX/XXXX and for only {$190.00} So they are actually just holding onto all the money extra I sent in, interest free by the way, and not using it for pre payment like I thought I could do. Questioning them on this, I was told if I wanted to have the extra amount applied to the principle, I would have to call them each time I made a payment to instruct them to do this. I asked if I they would do this now while I was on the phone and he said he could only do that for the last payment I sent in of {$700.00}, not for the other two. Then he said if I wanted to make prepayments applied to the principle with out having to call them, I would have to make separate payments to a completely different address and mark on it that it was for principle only etc. 
So my complaint is that they are being very deceptive about my payments, by not showing interest and principles paid nor stating that extra payments are not being applied, nor even stating what my actual interest percentage is on each statement. That 's not right, and I do n't think it should be allowed to happen like that. I would like you to see if this kind of dealing can be made to be changed for the consumers protection. I am going to contact my credit union to see if I can still get a loan from them and pay off Toyota, but that might not be possible, as I retired XXXX XXXX, XXXX.

Company response to consumer: Closed with explanation