Consumer complaint received 2026-01-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: TOYOTA MOTOR CREDIT CORPORATION
State: CA

Complaint narrative:
I am filing this complaint regarding Toyota Financial Services improper assessment of repeated late fees based on incorrect application of payment extensions, lack of notice, and unlawful late-fee stacking under California law XXXX 

I entered into a Retail Installment Sale Contract with Toyota Financial Services for a XXXX XXXX XXXX. I have consistently made my monthly payments on time, with payments made between the XXXX and the XXXX of each month. 

In XX/XX/XXXX, XXXX assessed a single late fee. In XX/XX/XXXX, a payment submitted on XX/XX/XXXX was returned for insufficient funds. XXXX subsequently issued an extension related to that payment, which, per the extension terms, was to be added to the end of the contract and not applied to any current monthly installment. That extension did not change the due dates for any payments in XXXX, XXXX, or XX/XX/XXXX. 

On XX/XX/XXXX, XXXX issued an Extension Confirmation letter stating that my next payment would be due on XX/XX/XXXX. I relied on that written notice and continued making monthly payments consistently. 

XXXX later claimedwithout prior notice or agreementthat it internally reassigned the XX/XX/XXXX, extension to earlier months ( XXXX and XX/XX/XXXX instead of XXXX and XX/XX/XXXX ). I was never informed of this reassignment at the time it allegedly occurred. As a result of this undisclosed internal accounting change, XXXX began characterizing my payments as late despite the fact that each payment was made between the XXXX and the XXXX of the month. 

XXXX then assessed a separate {$32.00} late fee for each month, asserting that payments were more than 10 days past the due date. This assertion is factually incorrect. No payment was made more than 10 days after its due date. For example, the payment XXXX claims was late on XX/XX/XXXX, was made on XX/XX/XXXX, the actual due date. 

By retroactively changing how extensions were appliedwithout noticeand then assessing repeated late fees based on that manufactured delinquency, XXXX engaged in late fee stacking, which is prohibited under California law, particularly where the alleged delinquency arises from improper payment application rather than actual late payment. 

XXXX partially waived XXXX late fee ( XX/XX/XXXX ), acknowledging that its extension notice was incorrect or misleading. However, it refused to reverse the remaining late fees that stemmed from the same error. XXXX can not acknowledge defective notice while continuing to enforce penalties that flow directly from that defective notice. 

Despite multiple disputes, XXXX has refused to correct the payment ledger, reverse all improper late fees, or acknowledge that my account was paid as agreed. 

I am requesting that the CFPB XXXX Toyota Financial Services billing practices, including : Improper and undisclosed reassignment of payment extensions ; Assessment of late fees when payments were made on time ; Repeated late-fee stacking resulting from internal accounting changes. 

Failure to provide clear and accurate disclosures as required under federal and California law.

Company response to consumer: Closed with explanation