Violation Tracker Individual Record

Company: 
Toyota Motor Credit Corp.
Parent Company: 
Toyota
Penalty: 
$21,900,000
Primary Offense: 
consumer protection violation
Secondary Offense: 
discriminatory practices
Violation Description: 

The Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) resolved an action with Toyota Motor Credit Corporation, under which Toyota Motor Credit will change its pricing and compensation system to substantially reduce dealer discretion and accompanying financial incentives to mark up interest rates. Toyota Motor Credit was also required to pay up to $21.9 million in restitution to thousands of African-American and Asian and Pacific Islander borrowers who paid higher interest rates than white borrowers for their auto loans, without regard to their creditworthiness, as a result of its past practices.

Year: 
2016
Date: 
2/2/16
Agency: 
Consumer Financial Protection Bureau
Civil or Criminal Case: 
civil
HQ Country of Parent: 
Japan
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
motor vehicles
Source Notes: 
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