Consumer complaint received 2025-03-18 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Company explaining amount owed
Company: TOYOTA MOTOR CREDIT CORPORATION
State: NY

Complaint narrative:
Dear Consumer Financial Protection Bureau, Re : Formal Complaint Against Toyota Motor Credit Corporation ( XXXX XXXX ) and XXXX XXXX XXXX ( XXXX ) ( XXXX # XXXX ) regarding Debt Discharge, Unlawfully possession of Trust property, Repossession of Vehicle, Refund Fees. 

I am writing to file a formal complaint against Toyota Motor Credit Corporation ( MTCC ) and XXXX XXXX XXXX ( XXXX ) regarding the wrongful repossession of a trust property ( vehicle ), despite the debt being discharged and the transfer/sell of ownership of the vehicle to an Irrevocable Living Trust . Additionally, I would like to bring to your attention a series of refund fees posted to the account hold with XXXX, which have not being received to the preferred bank account register ( ending in XXXX ). 

Details of the Issue : Vehicle Information : Make/Model of Vehicle : XXXX XXXX XXXX XXXX ( Vehicle Identification Number XX/XX/XXXXXXXX Loan Account Number XXXX XXXXXXXX Debt Cancellation and 1099-C Issuance : On XX/XX/XXXX, I received Form 1099-C Copy B for Debtor from Toyota Motor Credit Corporation, reporting the cancellation of a debt in the amount of {$24000.00}, which was associated with the above-mentioned vehicle. 
The Form XXXX explicitly indicated that the amount of debt discharge, confirming that the debt had been fully XXXX by Toyota Motor Credit Corporation XXXX XXXX ). 

Transfer of Vehicle into Irrevocable Living Trust : I transferred ownership of the vehicle into an Irrevocable Living Trust. This transfer was completed in good faith, with the understanding that the debt associated with the car had been fully XXXX. 
The transfer of ownership was properly recorded by XXXX, and the car is now titled under the trusts name on XX/XX/XXXX. The vehicle is now trust property. 

Repossession of the Vehicle : On XX/XX/XXXX, the trust property ( vehicle ) was picked up by XXXX XXXX XXXX ( XXXX ), acting on the instructions of Toyota Financial Services. 
The repossession occurred despite the fact that the debt was discharged, mark PAID and the amount owed was listed as {$0.00} on the dashboard on the online account hold by the prior owner with Toyota Financial Services a service mark used by XXXX and its subsidiaries. 
The repossession of the vehicle has caused significant distress, as I am under the reasonable belief that there was no longer any financial obligation to Toyota Motor Credit Corporation regarding this vehicle. 

Refund Fee Charges : I have noticed several refund fees posted to the account, which appear to be related to the loan. The fees have been as follows : XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$10.00} XX/XX/XXXX : {$9.00} XX/XX/XXXX : {$4.00} These refund fees appear to the account after the debt was XXXX. I have not received the refunds to my preferred bank account ( ending in XXXX ). 

I request that Toyota Motor Credit Corporation immediately investigate why these refunds were not deposited into my preferred bank account and ensure that the appropriate refunds are processed.

Issues Faced : Unlawful Repossession : Despite the debt being discharged and the vehicle being transferred into an irrevocable living trust with no outstanding debt, the vehicle was repossessed without my knowledge or prior notification.

I believe that Toyota Motor Credit Corporation failed to properly communicate the status of the debt discharge to their servicer and its implications for the vehicle 's ownership and repossession. 

Failure to Provide Adequate Notice or Opportunity to Resolve : I was not given any notice or opportunity to resolve this issue before the repossession took place.

Company response to consumer: Closed with explanation