Consumer complaint received 2025-07-15 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: TX

Complaint narrative:
Complaint Title : Toyota Financial Services Incomplete FCRA Investigation, Improper Reporting, and Unvalidated Debt Collection Summary of Complaint : On XX/XX/XXXX, I submitted a certified written dispute to Toyota Financial Services regarding XXXX charged-off accounts appearing on my credit reports : -Account # XXXXXXXX XXXX XXXX -Account # XXXXXXXX XXXX XXXX The dispute cited my rights under FCRA XXXX ( a XXXX ( XXXX ) ( B ) and XXXX XXXX XXXX, requesting investigation and full validation due to unresolved insurance and GAP coverage issues following a vehicle total loss. 
Toyota Financial Services responded to my initial certified dispute letter dated XX/XX/XXXX, with XXXX conflicting letters dated XX/XX/XXXX : In their XXXX letter, Toyota stated they could not commence an investigation because I supposedly did not provide sufficient information or a clear explanation of the dispute, citing XXXX XXXX XXXX ( d ) and ( f ). This is incorrect as my dispute clearly identified the accounts in question, the specific errors regarding GAP/insurance coverage, and legally referenced the applicable federal regulations under FCRA XXXX and FDCPA XXXX. Furthermore, I provided a detailed explanation and requested specific documentation to validate the debts. 

In their XXXX letter, Toyota claimed they completed an investigation and found their reporting to be correct and consistent with their records, but provided no supporting evidence or documentation to substantiate the balances, payments, or insurance/GAP claim denials. 

Additionally, Toyota Financial Services failed to address or even acknowledge the second account I disputed ( # XXXXXXXX XXXX XXXX XXXX XXXX ) in their response. However, I received a collection notice from XXXX XXXX XXXX dated XX/XX/XXXX, specifically referencing this account. This further demonstrates Toyotas failure to conduct a complete and reasonable investigation as required under FCRA XXXX ( a ) ( XXXX ) ( B ), and suggests they referred the account to collections without proper resolution or validation of the dispute. 

I specifically requested : -Full payment history -Original signed loan contracts -Insurance payout documentation -GAP claim denial letter -Itemized balance breakdown -Legal ownership or assignment information XXXX. Toyota Ignored XXXX of XXXX Disputed Accounts in CFPB response Toyotas response only addressed XXXX account ( # XXXXXXXX XXXX XXXX XXXX XXXX ) and completely ignored the XXXX account ( # XXXX * * * * ), which remains on my credit reports. No documentation, investigation details, or resolution was provided for that account. 

This is a direct violation of FCRA XXXX ( b ) ( XXXX ), which requires a furnisher to conduct a reasonable investigation into each disputed item. 

XXXX. Toyotas Response Was Incomplete and Insufficient For the account they did respond to, Toyota failed to provide proper validation. They did not include : The GAP denial letter ( which they referenced but did not attach ) Any documentation from Insurance showing what was paid The Insurance Settlement Balance Letter they claim to have sent An itemized deficiency breakdown explaining how the balance was calculated Toyota only provided the original signed contract and a transaction summary, but this does not meet the threshold for a reasonable investigation under XXXX XXXX XXXX or the FCRA. 

Without full documentation, Toyota is reporting unverified, potentially inaccurate information. 

XXXX. Debt Was Sent to Collection During Active Dispute On XX/XX/XXXX just XXXX days after my dispute was received I received a collection letter from XXXX XXXX XXXX attempting to collect on the same account. 

I sent a certified FDCPA XXXX ( b ) debt validation request to XXXX on XX/XX/XXXX. To date, I have received no response or documentation, yet collection efforts continue. 

XXXX admitted they assigned the debt to XXXX for collection but stated they did not sell it. This means XXXX retains ownership while using XXXX to collect during an active dispute without first resolving the dispute or validating the debt. 

XXXX Credit Reporting Inconsistencies Across Bureaus XXXX  XXXX Both accounts show the comment Completed investigation of FCRA dispute consumer disagrees yet the last updated dates are XX/XX/XXXX and XX/XX/XXXX, which is months before my XX/XX/XXXX dispute. This suggests either no new investigation was conducted, or the reporting was not properly updated a potential violation of FCRA XXXX ( b ). 

XXXX : Both accounts show a last updated date of XX/XX/XXXX, but there is no dispute comment at all which may violate FCRA XXXX ( a ) ( XXXX ), which requires furnishers to mark accounts as disputed when a dispute is received. 

XXXX : I have not been able to obtain a full XXXX  report yet, but the accounts are still being reported there as charge-offs as well. 

XXXX. Misleading Collection Structure ( New Issue ) Toyota stated in writing that XXXX XXXX XXXX  is collecting on their behalf, but XXXX does not appear on any of my credit reports. Toyota continues to report the full balance under their name across all bureaus, while claiming they are not responsible under the FDCPA.

This structure is misleading and inconsistent with the FCRA. Toyota is still furnishing the tradeline, collecting via a third-party, and failing to produce proper validation yet no record of XXXX appears on my reports, and Toyota has not clarified who holds legal collection authority. This raises concerns of double collection risk and unfair or deceptive practices. 
Supporting Documentation Provided : Original certified dispute letter to Toyota ( XX/XX/XXXX ) Toyota 's initial letter responses to me ( XX/XX/XXXX ) Toyotas partial response via CFPB ( XX/XX/XXXX ) Debt collection letter from XXXX XXXX XXXX ( XX/XX/XXXX ) Debt validation request sent to Radius ( XX/XX/XXXX ) Screenshots of XXXX and XXXX reports showing inconsistencies Final Statement : Toyota Financial Services has failed to meet its obligations under the Fair Credit Reporting Act. By ignoring XXXX account, failing to provide full validation, and referring the debt for third-party collection during an unresolved dispute, Toyota Financial Services has failed to meet its obligations under the Fair Credit Reporting Act. By ignoring XXXX account, failing to provide full validation, and referring the debt for third-party collection during an unresolved dispute, Toyota 's actions raise serious compliance concerns under federal consumer protection laws and have resulted in ongoing harm to me as a consumer. I ask the CFPB to hold them accountable and compel deletion or correction of the inaccurate tradelines.

Company response to consumer: Closed with explanation