Toyota Motor Credit could be forced to reimburse its borrowers or pay a hefty fine.
The U.S. Department of Justice and the Consumer Financial Protection Bureau (CFPB) has accused Toyota Motor Credit of discriminatory loan practices to certain borrowers. According to a recent filing, the Japanese automaker will have to agree to a resolution with the agencies voluntarily, including “monetary relief” as well as changes to its loan practices otherwise the agencies are prepared to bring an enforcement action.
Toyota Motor Credit has said that it will work with the agencies to reach a resolution which could mean reimbursement for its borrowers. Last year, Ally Financial Inc. paid $98 million for similar discriminatory loan practices from the U.S. Department of Justice and the CFPB.
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