Consumer complaint received 2023-11-09
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: TOYOTA MOTOR CREDIT CORPORATION (TX)

Dear Consumer Financial Protection Bureau ( CFPB ), Re : Toyota Motor Credit Corporation I am writing to you to make a complaint against Toyota Motor Credit Corporation ; My complaint pertains to their handling of my vehicle ( XXXX ) financing ( Acct numbers ending in 6157 & 5989 ) which as per the security exchange act has raised concerns of potential violations with security frauds and tax evasion. 

My promissory note and certificate of indebtedness was securitized by this company, they also received a CUSIP number and engaged in trading activities on the secondary market. Toyota Motor Credit Corporation has also failed to provide my lawful 80 % of the proceeds from the securitization of my note on the secondary market. I previously sent Toyota Financial ( XXXX ) XXXX XXXX a rescission notice that referenced ANY and All Security agreements with Toyota Motor Credit Corporation. The notice was delivered on XXXX XXXX XXXX XXXX XXXX via Certified mail # XXXX XXXX XXXX XXXX XXXX. 

Toyota Motor Credit Corporation continually fails to set-off the debt of the said note above, subsequently to the above I sent a registered security to both : Toyota Motor Credit Corporation - Delivered to XXXX XXXX XXXX XXXX and XXXX on XXXX XXXX XXXX XXXX via XXXX Toyota Motor Credit Corporation ( indenture trustee ) XXXX XXXX XXXX -Delivered to XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX via XXXX Toyota Motor Credit Corporation continues to request that I pay back the interest they borrowed for the US Treasury and have even hurt my ability to obtain credit by placing a charge off on my credit report ( charge offs are considered income so how can income be reported on my credit? ) I am writing to bring your attention to the compelling evidence brought to my attention via a Forensic Loan Securitization Analysis Report that substantiates the presence of Securities Fraud related to my auto loans. The evidence at hand not only highlights the existence of irregularities by the Employment of Manipulative and Deceptive Practices but also underscores the need for a thorough investigation and resolution of this matter. 

CUSIP Number : A crucial piece of evidence is the presence of a CUSIP ( Committee on Uniform Securities Identification Procedures ) number associated with my auto loans. CUSIP numbers are unique identifiers used in the securities industry to track financial instruments, including securities. The fact that my auto loan ( XXXX ) has an associated CUSIP number strongly suggests that it has been securitized, implying that it may have been bundled with other auto loans and sold as a financial product to investors. This is a key indicator of securities fraud when such securitization is not properly disclosed. 

My auto loan ( XXXX ) were not handled in accordance with the law, leading to a breach of my rights as a borrower and potential harm to investors. Despite the clear indications that the note ( XXXX ) are being sold or transferred, given the nature of the situation I have reason to believe that these transactions are not being reported to the U.S. Securities and Exchange Commission ( SEC ). The failure to report these transactions raises questions about compliance with the regulatory framework established to govern the securities industry. When financial instruments, including auto loan notes, are transferred, it is essential that such transactions be accurately and promptly reported to the SEC. This reporting is a fundamental requirement. Given the circumstances, it raises suspicions that any non-disclosure or failure to report may not merely be a matter of oversight, but rather a calculated maneuver to evade regulatory scrutiny. 

Toyota Motor Credit Corporation unauthorized sale of securities alone, conducted without the clear and informed consent of the rightful owner, unequivocally amounts to a severe violation of securities laws and regulations. It represents a blatant disregard for investor protection, and it flagrantly undermines the very core of securities markets. The perpetration of such a violation leaves no room for ambiguitythis is an undeniable breach of securities law and a clear case of securities fraud. Upholding the principles of securities law, safeguarding ownership rights, and ensuring investor interests are paramount in addressing this egregious misconduct. 

I have reason to believe that Toyota Motor Credit Corporation is channeling my funds to service the interest on securities associated with my auto loan note ( XXXX ), securities actively traded on the secondary market. This raises profound ethical and legal concerns, particularly when the auto loan debt is, in fact, fully discharged. This situation underscores the pressing need for transparency, legal remedies, and accountability. The borrower, unwittingly ensnared in this labyrinthine web, deserves nothing less than complete disclosure and resolution of this intricate and deeply concerning financial matter. 

Toyota Motor Credit Corporation seeks total return by investing in investment grade auto loan-backed securities or unrated auto loan-backed securities ( XXXX ) which the adviser determines to be of comparable quality. 

The issuance of auto loan-backed securities without the borrower's/investors knowledge or the creation of a CUSIP number without proper disclosure constitutes fraud. Here 's how it works : Securities Laws : Securities laws i.e Securities Act of 1933, and Securities and Exchange Commission ( SEC ) Regulations require issuers to provide accurate and complete information to investors. If auto loan-backed securities issuers, including banks and financial institutions, do not disclose the securitization process and the assignment of CUSIP numbers to borrowers, it is a violation of these laws. 

Lack of Disclosure : In securities markets, transparency and full disclosure are paramount. When car owners take out auto loans, they generally enter into agreements with their lenders. If their auto loans or notes are later bundled into auto loan-backed securities and traded as securities, the car owner should be made aware of this process and the potential risks involved. Failure to provide this information is considered fraudulent concealment. 

Misrepresentation : If the creation of ( ABS ) and the assignment of CUSIP numbers are not properly disclosed to borrowers, it is misrepresentation and omission of material information. Borrowers have the right to know how their auto loan contracts may be affected by securitization.

Risks for Investors : The lack of disclosure and transparency in the securitization process can create risks for investors, including mutual funds, who invest in ( ABS ). If the underlying securities are subject to legal challenges due to non-disclosure or misrepresentation, it can lead to financial losses and damage to the reputation of the investors. 

In summary, if borrowers/investors are not aware of the securitization of their auto loans and the assignment of CUSIP numbers to the related securities, it constitutes fraud due to non-disclosure and misrepresentation. Borrowers ( which are actually the investors ) have a right to know how their auto loan agreements are being packaged as securities and traded. Such non-disclosure can lead to legal consequences for the parties involved and pose risks for investors in these securities, such as the borrowers themselves or mutual funds.