Consumer complaint received 2025-04-14 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: TOYOTA MOTOR CREDIT CORPORATION
State: MA

Complaint narrative:
I am filing a formal complaint and dispute against Toyota Motor Credit Corporation for inaccurately reporting a repossession and charge-off account under my name : Creditor : Toyota Motor Credit Corporation Account XXXX : XXXX Alleged Balance : {$13000.00} Status : Repossession / Charge-Off Reporting Bureaus : XXXX, XXXX, XXXX I dispute this tradeline as inaccurate, incomplete, and unlawful under both federal and Massachusetts state laws. Specifically, Toyota Motor Credit failed to follow required repossession and post-sale procedures as mandated by law. 

Violations of Massachusetts State Repossession Law : Under M.G.L. c. 255B 20A & 20B, a creditor must : Provide a written Right to Cure Notice giving the consumer 21 days to bring the account current before repossession. 

Provide a Post-Repossession Notice disclosing intent to sell the vehicle and an accounting of sale proceeds. 

Waive any deficiency balance if these notices are not properly delivered. 

Toyota never sent these notices, which invalidates any right to collect or report a deficiency balance. Courts in Massachusetts have consistently held that failure to provide these notices voids the creditors ability to recover a deficiency or report a valid balance ( see XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX. XXXX, XXXX ( XXXX ) ). 

Violations of the Uniform Commercial Code ( UCC ) : Toyota also violated UCC 9-614, which mandates that creditors provide a post-sale explanation of : Sale method and date, Application of sale proceeds to the balance, Statement of deficiency or surplus. 

I was never provided a UCC-compliant explanation of the sale or how the alleged balance of {$13000.00} was calculated, making this reporting incomplete, inaccurate, and legally defective. 

Violations of the Fair Credit Reporting Act ( FCRA ) : Under FCRA 1681s-2 ( b ), furnishers like Toyota must : Report only accurate, complete, and verifiable information, Investigate and correct errors after receiving consumer disputes. 

Despite my prior attempts, Toyota failed to validate the tradeline with any supporting documentation. There are also reporting inconsistencies across bureaus regarding dates, balances, and payment activity post-charge-off clear FCRA violations. 

Failure to Issue 1099-C Form ( Cancellation of Debt ) : If a debt is canceled or forgiven ( which a charge-off may imply ), IRS regulations and 26 U.S. Code 6050P require the furnisher to issue a Form 1099-C. I never received this, further questioning the validity of the charge-off. 
Supporting Case Law and Federal Precedent : XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX. XXXX ( XXXX ) Failure to comply with repossession notice requirements voids deficiency claims. 

XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX. XXXX XXXX. XXXX ) Creditors that fail to provide proper UCC/post-sale notices lose the right to report or collect. 

XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. XXXX XXXX ( XXXX XXXX. XXXX ) Inaccurate credit reporting constitutes FCRA violations. 

XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) Credit bureaus and furnishers have an affirmative duty to thoroughly investigate disputes. 

FTC XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX ( XXXX XXXX. XXXX ) Failure to correct known inaccuracies is a willful violation of FCRA.

Company response to consumer: Closed with explanation