Consumer complaint received 2026-06-02 00:00:00
Product: Vehicle loan or lease — Loan
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: IL

Complaint narrative:
My name is XXXX XXXX, and I am writing to formally dispute the Charge-Off that Lexus Financial Services reported on my account and to request a comprehensive investigation into the circumstances that led to this reporting. In XX/XX/XXXX, I purchased a XXXX XXXX and financed the vehicle through Lexus Financial Services. In XX/XX/XXXX, my vehicle was involved in an accident. At the time of the loss, my outstanding loan balance was {$39000.00}. The insurance claim and damage assessment process lasted for more than XXXX months. During this period, I continued making my regular loan payments until I was informed by the Lexus Total Loss Department that the vehicle had been declared a total loss and that no further regular payments were necessary while the claim was being processed. On XX/XX/XXXX, XXXX XXXX issued a payment directly to Lexus Financial Services in the amount of {$34000.00}. Subsequently, on XX/XX/XXXX, my XXXX insurance provider, XXXX, issued an additional payment of {$710.00} directly to Lexus Financial Services. In late XX/XX/XXXX, I received notice that a remaining balance of {$2700.00} was still owed. I immediately contacted Lexus Financial Services to discuss repayment options. During that conversation, I explained that I had already purchased a replacement vehicle from a XXXX dealership and that paying the entire remaining balance at once would create a financial hardship. We mutually agreed to divide the remaining balance into XXXX monthly payments. Under this arrangement, my monthly payment due date was the XXXX of each month. I successfully made my first payment as agreed. Approximately twenty days later, I voluntarily submitted another payment ten days before the next scheduled due date. However, I later discovered that this payment was posted on the XXXX rather than being applied in a manner consistent with my understanding of the repayment arrangement. On XX/XX/XXXX, I logged into my account to make my next payment and was surprised to see that my account balance showed {$0.00}. When I contacted Lexus Financial Services for clarification, I was informed that my account had already been transferred to a collection agency because XXXX believed I had stopped making payments. This was unexpected and concerning because I had been making payments under the agreed repayment plan and had every intention of continuing to do so. Upon learning that the account had been assigned to collections, I immediately contacted the collection agency and paid the remaining balance in full, totaling {$2200.00}. Despite my efforts to honor the repayment agreement and despite paying the remaining balance in full, Lexus Financial Services subsequently reported a Charge-Off on my credit history. I respectfully dispute the accuracy and fairness of this reporting for the following reasons : I remained in communication with Lexus Financial Services throughout the process. I entered into a repayment arrangement that was approved by Lexus Financial Services. I made payments under that arrangement and even submitted a payment ahead of schedule. I was not intentionally avoiding payment and never abandoned my financial obligation. Upon learning that the account had been transferred to collections, I immediately paid the remaining balance in full. The circumstances suggest that there may have been a misunderstanding, payment posting issue, servicing error, or breakdown in communication regarding My name is XXXX XXXX, and I am writing to formally dispute the Charge-Off that Lexus Financial Services reported on my account and to request a comprehensive investigation into the circumstances that led to this reporting. In XX/XX/XXXX, I purchased a XXXX XXXX and financed the vehicle through Lexus Financial Services. In XX/XX/XXXX, my vehicle was involved in an accident. At the time of the loss, my outstanding loan balance was {$39000.00}. The insurance claim and damage assessment process lasted for more than XXXX months. During this period, I continued making my regular loan payments until I was informed by the Lexus Total Loss Department that the vehicle had been declared a total loss and that no further regular payments were necessary while the claim was being processed. On XX/XX/XXXX, XXXX XXXX issued a payment directly to Lexus Financial Services in the amount of {$34000.00}. Subsequently, on XX/XX/XXXX, my XXXX insurance provider, XXXX, issued an additional payment of {$710.00} directly to Lexus Financial Services. In late XX/XX/XXXX, I received notice that a remaining balance of {$2700.00} was still owed. I immediately contacted Lexus Financial Services to discuss repayment options. During that conversation, I explained that I had already purchased a replacement vehicle from a XXXX dealership and that paying the entire remaining balance at once would create a financial hardship. We mutually agreed to divide the remaining balance into XXXX monthly payments. Under this arrangement, my monthly payment due date was the XXXX of each month. I successfully made my first payment as agreed. Approximately twenty days later, I voluntarily submitted another payment ten days before the next scheduled due date. However, I later discovered that this payment was posted on the XXXX rather than being applied in a manner consistent with my understanding of the repayment arrangement. On XX/XX/XXXX, I logged into my account to make my next payment and was surprised to see that my account balance showed {$0.00}. When I contacted Lexus Financial Services for clarification, I was informed that my account had already been transferred to a collection agency because XXXX believed I had stopped making payments. This was unexpected and concerning because I had been making payments under the agreed repayment plan and had every intention of continuing to do so. Upon learning that the account had been assigned to collections, I immediately contacted the collection agency and paid the remaining balance in full, totaling {$2200.00}. Despite my efforts to honor the repayment agreement and despite paying the remaining balance in full, Lexus Financial Services subsequently reported a Charge-Off on my credit history. I respectfully dispute the accuracy and fairness of this reporting for the following reasons : I remained in communication with Lexus Financial Services throughout the process. I entered into a repayment arrangement that was approved by Lexus Financial Services. I made payments under that arrangement and even submitted a payment ahead of schedule. I was not intentionally avoiding payment and never abandoned my financial obligation. Upon learning that the account had been transferred to collections, I immediately paid the remaining balance in full. The circumstances suggest that there may have been a misunderstanding, payment posting issue, servicing error, or breakdown in communication regarding the repayment arrangement.

Company response to consumer: Closed with monetary relief