Consumer complaint received 2026-05-17 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: TOYOTA MOTOR CREDIT CORPORATION
State: IL

Complaint narrative:
This formal complaint is submitted pursuant to the XXXX XXXX XXXX XXXX ( XXXX ), 12 U.S.C. 5481 et seq., against Toyota Motor Credit Corporation and Lexus Financial Services for unfair, deceptive, and abusive acts and practices ( UDAAP ) arising from the financing, servicing, and collection of a motor vehicle loan involving materially impaired collateral and undisclosed federal safety recall related vehicle conditions. The complainant is an XXXXXXXX XXXX female consumer who possessed creditworthiness at the time of financing, including an established payment history and despite this credit profile, in XX/XX/XXXX, Toyota Motor Credit Corporation XXXX Lexus Financial Services financed the purchase of a used XXXX XXXX XXXX through XXXX XXXX dealership transaction. At the time of financing, the vehicle had multiple XXXX ( XXXX ) six federal XXXX safety recalls and XXXX XXXX documented history of recurring engine and drivability-related service activity that was not disclosed on or before the XX/XX/XXXX financing transaction. After purchase, the vehicle continued experiencing mechanical and electrical related issues requiring ongoing maintenance and repair expenses. In XX/XX/XXXX, the vehicle suffered catastrophic engine failure and became completely inoperable. Despite the complete loss of inoperable vehicle, approximately {$20000.00} remains owed under the loan obligation. Since XX/XX/XXXX, I have been without reliable transportation for approximately XXXX ( XXXX ) months and have incurred travel related expenses exceeding {$10000.00} for rental vehicles, rideshare services, and related costs, which continue to accumulate. I contacted Toyota Motor Credit Corporation/Lexus Financial Services via State of Illinois Attorney General Office on multiple occasions during XXXX and XXXX seeking customer service assistance, investigation, hardship accommodation, and loan modification despite the vehicle being completely inoperable and the collateral substantially impaired. In correspondence, Toyota Motor Credit Corporation/Lexus Financial Services stated that it does not independently verify dealership disclosures or federal recall related vehicle conditions prior to financing transactions. This raises concerns regarding underwriting practices, servicing procedures, dispute handling, and financing of materially impaired collateral. I am requesting CFPB investigation into the customer servicing and collection practices associated with my account, including failure to reasonably investigate federal recall disputes, continued bankruptcy collection activity involving unusable collateral, hardship handling, and enforcement of an unconscionable financial obligation under these circumstances. I am seeking suspension of collection activity, correction of adverse credit reporting, meaningful hardship loan remediation including debt cancellation, or, substantial loan balance reduction.

Company response to consumer: Closed with explanation