Consumer complaint received 2025-06-07 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Unable to receive car title or other problem after the loan is paid off
Company: TOYOTA MOTOR CREDIT CORPORATION
State: TX

Complaint narrative:
Subject : Continued Violation of Bankruptcy Discharge Injunction Account # XXXX Dear CFPB and Toyota Financial Services ' ( TFS ) : I am writing to address ongoing concerns regarding Toyota Financial Services ( TFS ) collection efforts related to my XXXX XXXX XXXX ( XXXX : XXXX ), account number XXXX, following my XXXX  XXXX bankruptcy discharge ( XX/XX/XXXX ). 

On XX/XX/XXXX, my XXXX  XXXX bankruptcy case ( XXXX XXXX XXXX XXXX, Case No. XXXX ) was discharged, as ordered by the Bankruptcy Court . 

On XX/XX/XXXX, I received XXXX letters from XXXX addressed to myself, XXXX XXXX, and XXXX to my wife, XXXX XXXX. These letters acknowledged the total loss claim and included language stating : If your vehicle is not deemed a total loss, then you will be responsible for any payments not made while your claim was being reviewed by your insurance company. Furthermore, the letters threatened that You will also be responsible for any balance that remains if no payment is received from your insurer. These statements wrongly assert post-discharge financial liability, contradict the protections provided under federal bankruptcy law, and create confusion and distress. 

The subsequent letters dated XX/XX/XXXX and XX/XX/XXXX, further escalated the issue by stating that I may be responsible for the entire balance if the insurance payment was not receivedagain reinforcing the impression that I remain liable for a debt that has been legally discharged. The companys XX/XX/XXXX, response claimed that these letters were sent " for information purposes only '' and included standard bankruptcy disclaimers. However, this does not shield TFS from liability under 11 U.S.C. 524 ( a ), especially when the body of the letters directly contradicts the discharge by coercing or suggesting payment. 

Therefore, I request the following resolution : TFS must cease all further collection-related communications concerning the discharged debt.

TFS must send written confirmation that they acknowledge the Chapter 7 discharge and will not pursue any remaining balance related to this vehicle loan.

TFS must correct any inaccurate or misleading communications, including those sent to my wife, and I. TFS must formally retract language that implies post-discharge financial responsibility.

TFS must ensure that all credit reporting agencies reflect the discharged debt appropriately.

I ask the Consumer Financial Protection Bureau ( CFPB ) to investigate this matter and ensure that TFS complies with federal bankruptcy and consumer protection laws to prevent further violations under the Fair Debt Collection Practices Act ( FDCPA ). 

The statement that I may be responsible for this debt constitutes a violation of the discharge injunction under 11 U.S.C. 524 ( a ), as it attempts to coerce repayment of a debt that the bankruptcy court has released me from. Sending multiple letters with such language can not be excused or mitigated by any disclaimers provided by TFS. Their insistence on potential liability improperly pressures me and conflicts with federal bankruptcy protections. 

Furthermore, in TFSs response dated XX/XX/XXXX, they assert that their letters are not an attempt to collect, assess or recover a claim in violation of the Bankruptcy code and are provided for information purposes only. This disclaimer is inappropriate and insufficient. Simply labeling these communications as informational does not absolve TFS from responsibility when the substance of the letters violates the discharge injunction. This legal disclaimer does not absolve TFS or grant TFS legal immunity.

The letters threatening tone and implication of personal financial responsibility are coercive and misleading. Courts have held that attempts to circumvent bankruptcy protections through veiled or indirect language still constitute violations under 11 U.S.C. 524 ( a ) and may also violate the Fair Debt Collection Practices Act ( FDCPA ).

Therefore, TFSs continued attempts to collect or imply responsibility for this discharged debt, even under the guise of informational notices, are unlawful and must cease immediately. I request that the CFPB investigate this matter thoroughly and take appropriate action to ensure TFS complies with the bankruptcy discharge injunction and federal debt collection laws. 

Thank you for your attention to this urgent matter. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation