Consumer complaint received 2025-10-15 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: IA

Complaint narrative:
Financial Institution : Toyota Financial Services ( TFS ) XXXX XXXX XXXX XXXX, AZ XXXX Dealership Involved : XXXX Toyota XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX, IA XXXX Subject : Complaint Regarding Unauthorized Add-Ons, Improper Loan Servicing, and Violations of Federal and State Consumer Protection Laws I am filing this complaint against Toyota Financial Services ( TFS ) and XXXX Toyota XXXX XXXX XXXX concerning my retail installment sales contract for a XXXX XXXX XXXX ( XXXX : XXXX ), Contract No. XXXX, Account XXXX. # XXXX. 



Background On XX/XX/XXXX, I financed a XXXX XXXX XXXX through XXXX Toyota XXXX XXXX  XXXX with financing through TFS. 
At signing, my wife ( co-signer ) and I expressly rejected all optional add-on products. 
Nevertheless, the dealer financed unauthorized products onto my loan : Mechanical Breakdown Protection ( {$4600.00} ) GAP coverage ( {$1200.00} ) Total : {$5800.00} ( plus finance charges ).

The APR was 12.19 % for 72 months, with monthly payments of {$840.00}. 

Attached evidence includes : My certified demand letters ( XX/XX/XXXX ) requesting cancellation/refund under the FTC Holder Rule. 
Certified mail receipts sent to TFS and the dealership.

Transaction history showing nine ( 9 ) payments of {$840.00} totaling {$7600.00}. 
Email confirmation from the dealers Finance Manager ( XX/XX/XXXX ) stating that my financing was set up without any add-ons contradicting the actual financed contract. 



Actions by Toyota Financial Services In XX/XX/XXXX, after my certified demand, TFS applied a refund reducing my balance from {$42000.00} to {$32000.00}. 
For nearly two weeks, the TFS app reflected a new recalculated payment of $ XXXX with no payment due until XX/XX/XXXX. 
Without notice, TFS then reverted my payment back to the original $ XXXX, while keeping the reduced balance of {$32000.00}. 
This inconsistent and misleading servicing created extreme confusion and short notice of payment obligations. 



Laws Violated 1. Truth in Lending Act ( TILA, Regulation Z ) : Inaccurate amount financed disclosures due to unauthorized add-ons.

Misleading amortization/payment schedule disclosures.

2. FTC Holder Rule ( 16 C.F.R. Part 433 ) : TFS is subject to all claims and defenses I have against the dealer. 
3. FTC Act 5 ( Unfair/Deceptive Acts or Practices ) : Adding products without affirmative consent is deceptive.

4. Iowa Consumer Fraud Act ( Iowa Code 714.16 ) : Prohibits deceptive practices in consumer financing. The dealership misrepresented the financing terms and product inclusion. 



Harm I paid nine ( 9 ) months of inflated payments totaling {$7600.00}, of which at least {$1100.00} represents overcharges directly attributable to unauthorized add-ons and their financed interest.

I have been subjected to unnecessary finance charges of approximately {$2100.00}.

TFSs inconsistent servicing caused misleading reliance on their app and short-notice billing changes.

Requested Relief I request that the CFPB require Toyota Financial Services and XXXX Toyota XXXX XXXX XXXX to : 1. Refund in full all unauthorized add-on charges ( {$5800.00} ) plus all associated finance charges already paid ( ~ {$2100.00} ). 
2. Re-amortize the loan as if the unauthorized products were never financed, with corrected monthly payment schedule.

3. Provide written confirmation that no adverse credit reporting will occur related to these disputed charges. 
4. Conduct a compliance review of XXXX Toyota XXXX XXXX XXXX and TFS for systematic add-on misrepresentations. 



Supporting Documents ( attached in CFPB portal ) Certified demand letters ( XXXX XXXX, XXXX XXXX 
XXXX certified mail receipts and tracking proof. 
Transaction history showing inflated payments. 
Dealer finance managers written email ( XXXX XXXX, XXXXXXXX  ) confirming no add-ons. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation