The US Consumer Financial Protection Bureau (CFPB) has ordered Toyota Motor Credit Corporation to pay a $60 million settlement for ripping off customers with shady loan schemes that increased their monthly loan payments by preventing them from canceling product bundles. As one of the best-selling automakers in the US, the antics unfortunately affected many customers.
Toyota Motor Credit Corporation is the US-based financing arm of the Japanese automaker, providing financing for consumers. The company also offers optional products and services, usually sold in bundled packages.
The bundled products include Guaranteed Asset Protection (GAP) and Credit Life and Accidental Health (CLAH) coverage. The former covers the difference between the amount a consumer owes on an auto loan and insurance payout if the vehicle is stolen or damaged. The latter covers the remaining balance if a customer dies or becomes disabled.
Consumers who unwittingly paid for these packages found it almost impossible to cancel or had refunds withheld or incorrectly calculated.
Toyota Motor Credit Corporation is the US-based financing arm of the Japanese automaker, providing financing for consumers. The company also offers optional products and services, usually sold in bundled packages.
The bundled products include Guaranteed Asset Protection (GAP) and Credit Life and Accidental Health (CLAH) coverage. The former covers the difference between the amount a consumer owes on an auto loan and insurance payout if the vehicle is stolen or damaged. The latter covers the remaining balance if a customer dies or becomes disabled.
Consumers who unwittingly paid for these packages found it almost impossible to cancel or had refunds withheld or incorrectly calculated.