Consumer complaint received 2018-01-23
Company: TOYOTA MOTOR CREDIT CORPORATION
State: UT
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem with paying off the loan

Complaint:
Regarding XXXX XXXX XXXX I was a co-signer on sons auto loan referenced above. 
While traveling through New Mexico the car above described broke down and needed to be repaired. The car was towed to nearest XXXX dealer, which is XXXX XXXX XXXX XXXX XXXX, XXXX, in XXXX, New Mexico. 
Dealer sold him a new car and told him the repair otherwise would take over a week for the clutch part. He was not expecting a repair nor a week delay. The cost of the part would be {$2000.00}. Or he could buy a new car and the {$2000.00}. Could go towards a down payment. He decided to purchase the new car and financing was to be done through XXXX XXXX. My son did get a welcome letter from XXXX XXXX, regarding a new loan. XXXX XXXX later rescinded the loan but not until after the trade-in was paid off. 
Dealer took car trade in on XX/XX/XXXX The dealer did not pay off the old loan on the XXXX until XX/XX/XXXX. I only found that out when the loan company called about the two missed payments, which I was shocked to find out, since they had a 10 day payoff on XX/XX/XXXX. 
I told the loan company Toyota/XX/XX/XXXX the car had been taken in trade several weeks before and should have been paid off. After several calls back and forth between the dealer they said it would be paid off. 

That in and of itself created credit lates that I had no idea happened not control of the process, I was very upset and expressed it to each person along the process. I asked that they the dealer, finance people assist in getting the late payments cleared up from both my sons and my own credit report. The spot delivery paper indicted that the dealer would be responsible for all payments on the trade in until it was paid in full. 

I received a letter in XX/XX/XXXX and in XX/XX/XXXX stating the loan on the XXXX which I co-signed was paid off and the account was closed. 

After several more weeks and many many calls from the dealer wanting more money and/or a co-signer for the new purchase. My son 's credit being pulled over 12 times, with no new loan. 
The dealer asked for the new car to be returned. 
I asked how the financing and payoff of the trade in would affect this because now there was no loan on the XXXX. The dealer, finance persons, sales person, two different general managers and the corporate official in salt lake never gave me, my son, ( nor my husband who was assisting me ) a straight answer. 
They demanded the car to be returned after their last attempt to have XXXX XXXX revisit the loan approval. XXXX XXXX again denied for low credit score according to Information we received. 
According to the spot delivery agreement, the new car was returned within 48 hours to the dealer, as required. 
Returning it was no easy feat because the weather was very bad and it was a 11 hour drive each  way from where my son lives. My husband followed him each way in case of any problems. This was on XX/XX/XXXX. 
The XXXX was in running condition when they arrived to pick it up. We have no way of knowing if the clutch was properly fixed, nor did he get a bill. The {$2000.00}. was not discussed or returned. nor did any financial conversation transpire. 
The new general manager put a temporary plate on the old vehicle and basically said here is your car, go register it when you get home. The General manager told my husband and son that out credit would be fixed and he would make sure it everything was handled. ( I could not go myself, due to my work schedule and it being such a long drive each way ) My son did n't notice that the rims had been swapped out and hundreds of miles put on the car until he was well out of the city and nearly home. 
I received a call from Toyota trying to collect the old debt that I promptly told them was paid off. They confirmed after checking and said they did see that was true and would try to get to the bottom of the issue. 
I also received a call from Toyota at the beginning of XX/XX/XXXX stating I would receive the title soon. I wondered why they called but I was on my way out of town so I thought I would figure out why upon my return. 
I was out of town from the first of XX/XX/XXXX until the XX/XX/XXXX. When I returned home I had several new bills from Toyota with a new loan number but it was on the XXXX that was previously paid off. ( old loan was paid off and closed I verified this with two phone calls to Toyota previously and two letters from Toyota ) The dealer nor Toyota notified me of rescinding the previous loan nor did I sign any new financial documents for a new loan. 
When I called Toyota regarding the loan, they said I was 3 months delinquent and XX/XX/XXXX the car ( XXXX ) would be repossessed. 
Not only have the harmed my credit standing, I had NO knowledge whatsoever of the reversal and I feel it was fraudulent activity on the part of the dealer. Additionally my credit is a large part of my employability and now that is also jeopardized as well as my credit. 
Thank you for your assistance.

Company response to consumer: Closed with explanation