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1. Why are certain TMCC customers receiving redress checks?
TMCC entered into a Consent Order with the Consumer Financial Protection Bureau (or CFPB), effective November 20, 2023, concerning certain voluntary protection products (often referred to as “VPPs” or “add-on” products as described in the Consent Order) as well as TMCC’s credit reporting for certain customers with lease contracts due to delays in processing the return of a leased vehicle.
The Consent Order with the CFPB does not cover any finance contracts or VPPs entered into or purchased prior to January 1, 2016.
Additionally, TMCC determined based upon an internal review that inaccurate information about certain customer accounts was furnished to consumer reporting agencies in connection with the termination of their leases. Prior to the Consent Order, TMCC submitted requests to the credit reporting agencies to update the previously reported information on those customer accounts. The affected consumers will receive redress under the terms of the Consent Order.
TMCC has engaged Kroll Settlement Administration (also referred to as “Kroll”) to distribute notices and redress checks to affected customers and handle certain customer inquiries on TMCC’s behalf.
2. How was eligibility determined?
Pursuant to the Consent Order, certain TMCC customers were determined to be eligible for redress based on a review conducted by TMCC and overseen by the CFPB. If it was determined that a customer qualified for redress, a payment was, or will be, delivered to that customer directly. Receipt of a payment pursuant to the Consent Order does not impact any customer’s existing contractual obligations or ongoing vehicle payments.
3. How will customers be notified?
Customers receiving redress payments will receive a mailing from Kroll Settlement Administration, TMCC’s administrator. Kroll may also contact customers by telephone who have not cashed redress checks. Questions regarding these communications or redress payments should be directed to Kroll. Customers may contact Kroll by emailing [email protected] or by calling Kroll’s toll-free number at 833-462-3599. Additional information can be found at www.tmccremediation.com.
4. What is the CFPB?
The Consumer Financial Protection Bureau or CFPB is a federal regulatory agency that implements and enforces federal consumer financial laws. TMCC, as a consumer financial services company that is a “larger participant” in the automobile finance market, is supervised and examined by the CFPB.
5. What is a consent order with the CFPB?
A consent order is a settlement agreement reached by the CFPB and a financial institution, such as TMCC, to resolve an investigation into alleged violations of federal consumer financial laws. Consent orders are entered into voluntarily, and typically provide for monetary redress to consumers as well as injunctive relief and other administrative requirements.
6. How can customers obtain a copy of the consent order?
The consent order can be found at: https://www.consumerfinance.gov/enforcement/actions/toyota-motor-credit-corporation-2023. A copy is also available in the "Documents" section of this website.
7. What did the CFPB assert that TMCC did wrong?
The CFPB alleged that certain of TMCC’s practices regarding the cancellation of and refund process for VPPs did not conform to applicable consumer financial laws, and that TMCC’s credit reporting policies and procedures did not assure accurate credit reporting for certain customers who had leased vehicles.
TMCC was not found by a court to have violated the law and did not admit to or deny any of the CFPB’s allegations as described in the Consent Order. TMCC agreed to enter into the Consent Order to resolve the CFPB’s investigation of the company, with which TMCC cooperated fully, and to fulfill TMCC’s commitment to continually provide ever-better service to its customers.
8. Did TMCC violate the law?
TMCC was not found by a court to have violated the law and we did not admit to or deny any of the CFPB’s allegations as described in the Consent Order. TMCC agreed to enter into the Consent Order to resolve the CFPB’s investigation of the company, with which TMCC cooperated fully, and to fulfill TMCC’s commitment to continually provide ever-better service to our customers.
9. Which brands were affected?
Remediation and go-forward improvements that will be implemented in connection with the Consent Order will apply to Toyota Financial Services (TFS), Lexus Financial Services (LFS), and Mazda Financial Services (MFS) customers.
10. Should customers contact the CFPB?
The CFPB has directed customers to contact TMCC’s administrator, Kroll Settlement Administration, for all inquiries regarding the Consent Order. Customers may contact Kroll by toll-free telephone at 833-462-3599 or by email at [email protected].
Customers may also visit the CFPB’s website for additional information at https://www.consumerfinance.gov/enforcement/actions/toyota-motor-creditcorporation-2023/.
11. From whom will customers receive redress checks?
Redress payments are being administered by Kroll, which TMCC has engaged to administer redress required by the Consent Order. Questions regarding redress payments should be directed to Kroll. Customers may contact Kroll by emailing [email protected] or by calling their toll-free number at 833-462-3599. Additional information can also be found at www.tmccremediation.com.
12. How can customers find out how much they will receive?
Redress payment amounts were determined based upon the category of redress that customers qualified for under the Consent Order using methods approved by the CFPB. For information regarding the details of a particular redress payment, customers may contact Kroll by emailing [email protected] or by calling Kroll’s toll-free number at 833-462-3599. Additional information can also be found at www.tmccremediation.com. Customers will be referred to TMCC customer service representatives as may be required.
13. Are redress payments being required by the CFPB or another government agency?
TMCC agreed to make certain specific redress payments under the terms of its Consent Order with the CFPB. No other federal or state government agency was involved with the Consent Order.
14. Was credit reporting for customer accounts impacted?
Certain customer accounts covered by the Consent Order experienced inaccurate credit reporting due to delays in processing the return of a leased vehicle. Prior to the Consent Order, TMCC submitted requests to the credit reporting agencies to correct the previously reported inaccurate information. Those customers will receive redress payments in accordance with the requirements of the Consent Order. TMCC has taken steps to improve its existing policies and procedures that are designed to promote accurate credit reporting and promptly correct credit reporting as needed.
15. How will refunds be handled for customers who purchased and attempted to cancel more than one VPP during the relevant period?
If an affected customer is entitled to a redress payment relating to more than one VPP, the customer will receive a redress check for each qualifying VPP.
For more information please call (833)-462-3599.
Important Dates
For more information please call (833)-462-3599.