Consumer complaint received 2026-03-09 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: TOYOTA MOTOR CREDIT CORPORATION
State: CA

Complaint narrative:
I am submitting a complaint regarding the handling of my XXXX claim by Lexus Financial Services after my vehicle was declared a total loss. I have been a customer with Lexus Financial Services for more than XXXX years and financed a XXXX XXXX IS XXXX through XXXX of XXXX. According to my retail installment contract, the total amount financed was approximately {$29000.00} with XXXX monthly payments beginning in XX/XX/XXXX. Prior to this loan, I originally leased the vehicle and then purchased it once the lease ended. Over the years I have essentially paid for this vehicle twice through leasing and financing. I also purchased XXXX coverage through the dealership specifically to protect me in the event that my insurance settlement did not cover the remaining loan balance. Unfortunately, my vehicle was recently totaled. My primary insurance paid the vehicle value ; however, there remains an approximately {$8000.00} balance that Lexus Financial Services is refusing to cover under the XXXX policy. Their reasoning is that I had payment deferments and late fees during the life of the loan. During the course of the loan I experienced financial hardship and requested approximately XXXX payment deferments. These deferments were approved by the lender and were not missed payments. At no time during the deferment process was I informed that accepting a deferment would void or reduce my XXXX coverage. Additionally, I was never provided a copy of the XXXX policy explaining that approved deferments could invalidate the coverage. Had I been informed of this condition, I would have made different financial decisions regarding the loan. I maintained full coverage insurance on the vehicle at all times and purchased XXXX coverage specifically to protect against the financial hardship of a total loss situation. Denying the XXXX claim due to lender-approved deferments appears unfair and contrary to the purpose of the coverage that was sold to me. I respectfully request that this matter be reviewed and that Lexus Financial Services be required to : Reopen and reevaluate my XXXX claim Provide the specific contractual provision that allows denial due to lender-approved deferments Pay the remaining XXXX balance of approximately {$8000.00} that should be covered under the policy I have attempted to escalate this matter directly with the company but have not received a satisfactory resolution. Thank you for your assistance in reviewing this matter. Lexus Financial Services denied my XXXX claim based on payment deferments that were approved by the lender, yet I was never informed that accepting these deferments could void or reduce my XXXX coverage. I was also never provided a copy of the XXXX policy outlining these exclusions, which prevented me from making informed decisions about my loan and coverage. Because XXXX insurance was purchased specifically to protect against a total loss deficiency, I respectfully request that this claim be reopened and reviewed to ensure fair and compliant treatment.

Company response to consumer: Closed with explanation