Consumer complaint received 2024-12-13 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: TOYOTA MOTOR CREDIT CORPORATION
State: MD

Complaint narrative:
I attempted to pay off my car loan with Toyota Financial Services ( TFS ) on XX/XX/year>, by sending in a check. However, at the beginning of XXXX, I received a notification that I was behind on a loan payment. XXXX, I contacted XXXX XXXX to inquire about the situation. During my call, a representative from XXXX informed me that they had not received my check and that I needed to make a payment to avoid late fees. 

Initially, XXXX had informed me that they received the check, had processed my loan to a XXXX balance, and had released the lien on the title. However, about XXXX days later ( around XX/XX/XXXX ), after the check had been sent, they reestablished the loan and indicated that the payoff was not processed as originally agreed. Following this, I cancelled the check. 

XXXX XXXX XXXX Bank has documented evidence showing that the payment was made. It appears that there was internal miscommunication at XXXX XXXX, as XXXX department reported receiving the payment while another did not. I have made multiple attempts to reach out to XXXXXXXX XXXX  customer service through my loan account, but their response was dismissive, only stating that I was behind on my payments. They provided no further assistance or clarification. 

After this incident, I received the free and clear title to the car about XXXX weeks later, but despite this, I continued to face issues when trying to resolve the situation. I called XXXX multiple times, trying to pay off the loan for the original amount I had sent in XXXX, minus the most recent payments. However, XXXX informed me that the payoff amount had increased and they would need to seek approval to potentially forgive the additional interest. This response was unacceptable to me, as there was no guarantee they would do so, and I felt XXXX was mishandling the situation. Their actions were damaging my credit, and I lost confidence in Toyota Financial Services ' ability to resolve the issue fairly and competently. 

On XX/XX/XXXX, I attempted to reach out again, but once again, I was met with unreasonable responses. XXXX insisted that I allow the check to go through their process, which could take several months. I believe this is an unfair and unreasonable delayespecially given that any legitimate car loan service should be able to process a payoff within XXXX  days. It feels like I am being extorted for the additional interest by Toyota Financial Services, which is unacceptable. 

I have continued to make payments in XXXX, XXXX, XXXX, and XXXX, but I am still accruing interest, which is frustrating and unjust considering the error was on XXXX 's part. Therefore, I am requesting that XXXX allow me to pay off the loan for the amount I initially attempted to pay in XXXX and waive any interest that has accrued since then due to their mistake. 

If Toyota Financial Services continues to make things difficult, I will consider taking further action to regain ownership of the car without additional payments. I am questioning their legal claim to the loan or the vehicle, especially since they released the title to me. At this point, their behavior is more reminiscent of a coercive organization, not a legitimate financial service. They are preventing me from paying off my loan, damaging my credit, and jeopardizing my job due to my security clearance. 

I am seeking assistance from the Consumer Financial Protection Bureau ( CFPB ) to help resolve this matter and to investigate how many other individuals Toyota Financial Services may be mistreating with either their incompetence or what feels like extortion.

Company response to consumer: Closed with monetary relief