Toyota Motor Credit Corp. reached a $7.6 million settlement with Massachusetts Attorney General Andrea Joy Campbell, resolving allegations of unlawful mortgage assortment practices.
As a part of the settlement introduced Thursday, the captive finance arm will present about $5.5 million in debt aid to greater than 500 Massachusetts shoppers. The remainder of the settlement will assist pay for the investigation, prices of administering the settlement and a few direct funds to debtors.
The legal professional common stated Toyota Motor Credit “failed to give certain consumers sufficient information about the calculation methods for deficiencies left on their auto loans after their cars were repossessed.” The settlement additionally alleged Toyota Motor Credit violated the legal professional common’s debt assortment rules by making “excessive collection calls to certain consumers.”
“Consumers facing repossession and collection actions on their vehicles deserve clear and transparent information from auto lenders,” Campbell, who turned legal professional common in January, stated in a written assertion.
Toyota Motor Credit denied wrongdoing relating to Campbell’s allegations.
“The company strives to consistently follow all state laws in our sales, customer service, and administrative practices,” Toyota Motor Credit stated in a written assertion to Automotive News. “In settling with the state of Massachusetts, TMCC admits to no wrongdoing. In 2018, TMCC revised our post-repossession notices to comply with the court’s interpretation of the state statute.”
Source: www.autonews.com