Consumer complaint received 2025-01-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: TOYOTA MOTOR CREDIT CORPORATION
State: MA

Complaint narrative:
I am writing to formally address the deceptive, predatory, and unlawful practices by Toyota Financial Services and Toyota Motor Credit Corporation concerning my vehicle loan. These practices include : Continuous overcharging of interest. 

Improper application of payments. 

Failure to properly implement a loan extension agreement. 

Inaccurate reporting to credit bureaus. 

Mislabeling of returned payments. 


These actions have caused significant harm to my financial stability, creditworthiness, and trust in the financial system. 

Background : On XX/XX/XXXX, I was approved for a debt extension agreement, which provided relief for two months ( XXXX and XX/XX/XXXX ) and extended the loan term by two months. Despite this, Toyota issued a Notice of Default on XX/XX/XXXX, the following day, in direct violation of the terms of the extension. Toyota also failed to update this information with credit bureaus, resulting in XXXX, XXXX, and XXXX being reported as missed payments, which continues to negatively impact my credit. 

On XX/XX/XXXX, I contacted Toyota to clarify this matter. During 2 calls lasting 56 minutes and 27 seconds and 46 minutes and 33 seconds, I received conflicting responses from three representatives : 1. One claimed the extension applied to XXXX and XXXX. 


2. A manager misleadingly stated it applied to XXXX and XXXX. 


3. The third representative asserted it applied to XXXX and XXXX. 



These discrepancies raise serious concerns about Toyota 's internal procedures and record-keeping accuracy. The correct application of the extension should be verifiable by reviewing the signed contract. However, Toyota has failed to provide this document despite multiple requests. 

During my calls, I was initially informed by a manager, XXXX, that the signed contract could not be sent via email and would take at least ten business days to arrive by mail. On a subsequent call, a third representative, XXXX, informed me it could be sent via email within forty-eight hours. Despite these promises, I have not received the document. Additionally, on XX/XX/XXXX, I contacted Toyota to request a copy of my contract and transaction history, providing them with an updated and correct mailing address. However, on XX/XX/XXXX, when speaking to the manager, I discovered that Toyota had recorded an entirely incorrect city in my address, further demonstrating a pattern of procedural failures. 

Discrepancies in Payments and Records : Toyotas billing statements and transaction histories fail to match consistently, reflecting an ongoing and long-term issue. This undermines the transparency and accuracy of my account and raises further concerns about Toyotas procedural practices. The following examples demonstrate discrepancies and overcharges : 1. XX/XX/XXXX : Payment of {$520.00}, with {$300.00} applied to principal and {$210.00} to interest. This interest allocation does not align with the stated daily per diem of {$2.00}, which would total {$68.00} for a thirty-day month. 


2. XX/XX/XXXX : Payment of {$520.00}, with {$380.00} applied to principal and {$140.00} to interest, exceeding the expected interest by {$74.00} for the month. 


3. XX/XX/XXXX : Payment of {$1000.00}, with {$600.00} applied to principal and {$440.00} to interest, an overcharge of {$370.00} in interest for the month. 


4. XX/XX/XXXX : Payment of {$540.00}, with {$390.00} applied to principal and {$140.00} to interest, exceeding the correct interest amount by {$73.00}.

5. XX/XX/XXXX : Payment of {$550.00}, with {$440.00} applied to principal and {$100.00} to interest, reflecting an overcharge of {$39.00}. 



These consistent overcharges, when compared to the stated {$2.00} daily interest rate, clearly demonstrate a pattern of overcharging across the duration of the loan. 


On XX/XX/XXXX, a payment of {$1300.00} was returned, as shown in the transaction history. Instead of categorizing this as a " return payment, '' Toyota mislabeled the entire amount as a " return fee, '' which is inconsistent with how other returned payments were recorded. 

Additionally, my initial billing statement failed to reflect the application of my {$2000.00} down payment toward the loan balance. This omission has caused prolonged harm, as it distorts the accurate balance owed. 

Failure to properly Implement and apply Extension Agreement : The extension agreement should have applied to XXXX and XX/XX/XXXX, starting my balance at XXXX for XXXX. From XXXX to XX/XX/XXXX, my payments should total {$2600.00} ( five payments of {$520.00} each ). However, based on my verifiable payments, including partial payments from XXXX and XXXX, I have paid a total of {$2400.00}. This amount does not align with Toyota 's stated balance of {$700.00} as of XX/XX/XXXX. 

Additional Notes : It is important to emphasize that the claims and violations outlined in this notice are not exhaustive and may extend beyond what is explicitly stated here. Additional discrepancies or violations may become evident upon further review of the account and documentation.

Relevant Laws : 1. Truth in Lending Act ( TILA ) 15 U.S. Code 1601 et seq.

Requires accurate disclosure of loan terms, including interest rates, fees, and charges. The discrepancies in Toyotas application of interest and failure to properly implement the loan extension may constitute a violation of these disclosure requirements.

2. Fair Credit Reporting Act ( FCRA ) 15 U.S. Code 1681 et seq.

Governs the accuracy of information provided to credit bureaus. Toyotas failure to correct inaccurate reporting of payments and missed payments for XXXX, XXXX, and XX/XX/XXXX may violate this law. 



3. Massachusetts Consumer Protection Act Chapter 93A Prohibits unfair and deceptive practices in trade or commerce. Toyotas inconsistent record-keeping, mislabeling of payments, and delays in providing requested documentation could be seen as violations under this law. 


4. 15 U.S. Code 1666 ( Fair Credit Billing Act ) Provides protections for billing errors and requires prompt correction. Toyotas failure to address disputes about the billing errors and discrepancies in transaction history may fall under this statute.

Closing Statement : Thank you for taking the time to review this formal notice. To the best of my knowledge and understanding, the claims and allegations outlined herein reflect the issues I have experienced with my account. I acknowledge that there may be additional discrepancies or details beyond what I have presented. If any of my statements are incorrect, I welcome clarification. 

Respectfully. 
The Body-politic

Company response to consumer: Closed with explanation