Consumer complaint received 2024-05-14
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: TOYOTA MOTOR CREDIT CORPORATION (VA)

XX/XX/XXXX : My son and I purchased a new vehicle from XXXX XXXX XXXX ( XXXX, OH ). The finance manager automatically added protection warranties ( XXXX XXXX XXXXXXXX {$290.00} and XXXX XXXX XXXX XXXX {$990.00} ), which we were told were not optional and could not be removed. They also promoted a " bumper to bumper XXXX XXXX miles extended warranty '' for {$1900.00}. It sounded like a good deal, so I wrote a check on the spot to pay for that in full ( {$2000.00} including sales tax ). I asked for a copy of all of the warranty coverages and exclusions, yet the dealer stated " booklets would be mailed to me within XXXX weeks ''. I later found out, after a lot of online digging and contacting XXXX XXXX XXXX ( the warranty company ) that the warranty we purchased was in fact a WRAP policy, not a " bumper to bumper '' warranty as we were told. 

XX/XX/XXXX : I emailed the finance manager to follow-up on the warranty booklets. She then responded that it takes XXXX weeks. 

XX/XX/XXXX : I called and left a message that the car was involved in a hit and run. We had filed a claim with our auto insurance company and needed to know the coverages and exclusions to find out if any parts of the warranties would be voided due to the damage. I also went online and found contact information for XXXX XXXX XXXX and reached out to them directly. They were able to send me SAMPLE policy booklets and said that the dealership should have given me the policy coverage information when we bought the car. 

XX/XX/XXXX : I submitted written cancellation requests for two of the three warranties ( theft protection and WRAP ) after finding the cancellation policy on the company 's website. XXXX XXXX, the finance manager at XXXX XXXX XXXX was cc 'd on all emails. 

XX/XX/XXXX : Received an email response from XXXX XXXX XXXX that they had cancelled the Theft Deterrent Protection policy and stated a refund of {$270.00} would be issued within 8 weeks. ( XXXX XXXX cc 'd ). 

XX/XX/XXXX : Received an email from XXXX XXXX XXXX that they could not cancel the WRAP contract as it was not active and to contact the dealership to inquire. It appears the dealership never submitted the registration for this one. ( XXXX XXXX cc 'd ). I 'REPLIED ALL " advising XXXX to issue the refund immediately. No response! 

XX/XX/XXXX : I sent another email to XXXX XXXX to follow-up on my request for the refunds. She said she would send me a cancellation form to sign ( which I had already done when I submitted the request to cancel on XX/XX/XXXX ) in order to cancel the warranty. 

XX/XX/XXXX : I emailed the 2nd signed cancellation form to XXXX. She replied that it would take approx. 8 weeks to process and that the refund would be sent to XXXX XXXX since we had a loan on it ( even though I paid for the warranty outside of financing ). I agreed -- just wanting it to be over. 

XX/XX/XXXX : I emailed XXXX again, as the refund still had not been processed. She responded that the cancellation was processed on XX/XX/XXXX and turned over to her office XXXX to issue the refund. She directed me to XXXX XXXX, the office manager. I emailed XXXX asking to send the refund asap as we have been waiting since XXXX and intended to refinance the loan, yet was waiting on the refund to be applied so as to not cause the funds to be " lost '' in transition. 

XX/XX/XXXX : XXXX XXXX issued a check for the refund on the WRAP policy in the amount of {$1900.00}. It was mailed standard XXXX mail with tracking number. XXXX indicates it was received by XXXX XXXX on XX/XX/XXXX. As of XX/XX/XXXX, XXXX XXXX has not posted the payment. 

XX/XX/XXXX : I emailed XXXX again to advise that we still had not received the refund for the Theft Deterrent cancellation ( {$270.00} ). She issued the refund that day and mailed via one-day XXXX XXXX to XXXX XXXX XXXX XXXX indicates it was received and signed for on XX/XX/XXXX. As of XX/XX/XXXX, XXXX XXXX has not posted the payment. 

XX/XX/XXXX : I called Toyota Financial Services ( TFS ) to inquire when the payments would be posted. They stated that they had not received anything. I emailed XXXX and stated that she needed to get this resolved and included a link to the CFPB {$60.00} XXXX order against XXXX XXXX XXXX for their ongoing illegal misconduct. 

XX/XX/XXXX : XXXX called to advise that she had spoken to someone at XXXX XXXX XXXX and they stated that they did in fact have the payments and they would be applied to the principal within 24-48 hours. 

XX/XX/XXXX : Payments still not posted. XXXX and I had a three-way call with " XXXX '' XXXX XXXX XXXX XXXX XXXX He confirmed that they had both checks in their possession and stated that, " Per company policy, payments take 7 business days to process ''. We reminded him that we had previously been told that they would be processed within 24-48 hours. He would not budge. XXXX requested to speak to a manager, who reiterated that it would take XXXX business days and that payments would be processed no later than Tuesday, XX/XX/XXXX. 

XX/XX/XXXX : Neither payment has been processed. I called XXXX again and spoke to XXXX. He advised that it takes 30 days to process the payments. I was furious and asked to speak to a manager. He connected me with XXXX. She also said that it would be 30 days. I informed her that I was recording the call because I keep getting the run around. She said that she had to hang up because the call was being recorded and she hung up. 

I emailed XXXX XXXX to inform her. She then placed another XXXX call to TFS. Once again, the representative said it would be 30 days. XXXX advised that they did not need to wait 30 days for the policies to be cancelled as they have already been cancelled and they needed to simply post the payments received to my loan principal. XXXX refused. XXXX informed me that she would reach out to a manager and call me back. 

My son and I both have excellent credit, yet the interest rate that XXXX is charging us is over 2 % higher than other financial institutions. The only reason we financed with them to begin with is because we bought the car out of state and thought it would be more convenient to go through the dealership. Their deceptive practices costs us {$6.00} every day ( daily interest ) that they delay payment. 

My son and I are in the process of refinancing the loan as we will not allow TFS to continue earning interest while they stall. I'm certain that the refunds will then get " lost '' as they will not have a loan to pay it to and WE WILL NEVER GET THIS MONEY BACK. Even after they were ordered by the CFPB in XX/XX/XXXX to pay {$60.00} million for misconduct, they continue to deceive consumers and charge much higher interest rates than the average.