Consumer complaint received 2024-03-14
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: TOYOTA MOTOR CREDIT CORPORATION (NE)

Dear Federal Trade Commission, I am filing a formal complaint against Toyota Financial Services for their unfair debt collection practices and misleading communication regarding a total loss claim following a car accident. 

On XX/XX/XXXX, I was involved in a serious car accident where I was rear-ended by a driver who fell asleep at the wheel. I sustained significant XXXX injuries that required extensive medical treatment, as evidenced in the attached medical reports. My XXXX Toyota XXXX XXXX, which was financed through Toyota Financial Services, was totaled in the accident. 

Immediately following the accident, I contacted Toyota Financial Services to inform them of the situation. A representative instructed me to stop making payments on the vehicle while they initiated the total loss process with the at-fault driver 's insurance company. Throughout this entire process, Toyota Financial Services failed to provide clear communication on : Timeline : How long the total loss process would take. 
Expectations : What actions I needed to take, if any. 
Outcome : Whether insurance would cover the full loan balance. 
After approximately XXXX months of treatment, I reached out to Toyota Financial Services for an update on the total loss process. I was shocked to learn that they had received a settlement of {$8600.00} from the insurance company and written off the remaining balance. While this was done, I was never informed that I had an outstanding balance of {$1300.00} on the vehicle. 

Toyota Financial Services then referred my case to a collection agency. The collection agency offered to settle the debt for {$780.00} ( approximately 50 % of the original outstanding balance ) with the stipulation that the account would be reported as a " charge off '' on my credit report. This charge-off has had a significant negative impact on my creditworthiness, preventing me from securing essential things such as housing. 

I have repeatedly contacted Toyota Financial Services to request that they remove the charge-off given the circumstances and their failure to adequately inform me. They claim the account is marked as " settled '' and refuse to take further action. 

I believe Toyota Financial Services engaged in unfair and misleading practices by : Failing to provide clear communication : Regarding the total loss process, potential outstanding balances, and steps I needed to take. 
Inadequately Handling Debt Collection : By failing to notify me of the outstanding balance and referring the matter to collections without proper prior communication. 
Damaging Creditworthiness : By allowing this situation to result in a " charge off '' status on my credit report. 
I request that the Federal Trade Commission investigate this matter and take appropriate action to compel Toyota Financial Services to remove the charge-off from my credit report. Their actions have caused significant financial and emotional distress. 

Thank you for your attention to this matter. 


Attachments : Medical Reports