Toyota’s Captive Faces CFPB, DOJ Enforcement Action, from F&I Magazine.
Toyota Motor Credit Corp. revealed last week in a regulatory filing that it could face an enforcement action from the Consumer Financial Protection Bureau and the U.S. Department of Justice. According to the Nov. 28 filing with the Securities and Exchange Commission (SEC), the two agencies allege that the captive’s practices have resulting in discriminatory pricing of loans.
Toyota’s finance arm said in its filing that it was notified of the potential enforcement action in a Nov. 25 letter issued by the two agencies. This notice comes a little more than a year since the captive revealed in a September 2013 filing that the bureau and the DOJ requested information regarding its pricing practices for loans it funds through auto dealers.
The finance source, which Experian Automotive had as the No. 3 finance source in the third quarter with a 4.49% share of the market, said in its recent SEC filing that it intends to cooperate with the agencies’ investigation.