The Department of Justice and the Consumer Financial Protection Bureau last month launched an investigation against Toyota Motor Credit over allegations of auto-lending discrimination practices.
Toyota said in a recent Form 8-K with the Securities and Exchange Commission that it had received a letter from the Justice Department and CFPB on Nov. 25, requesting that it provide “certain information about our purchases of auto finance contracts from dealers and about related discretionary pricing practices.” According to the letter, “such practices resulted in discriminatory pricing of loans to certain borrowers,” the company stated.
Both agencies said they’re prepared to initiate an enforcement action, unless Toyota Motor Credit agrees to a satisfactory voluntary resolution. Specifically, the agencies have indicated that they’re seeking monetary relief and implementation of changes to Toyota Motor Credit’s discretionary pricing practices and policies.
Toyota Motor Credit added that it is cooperating with the agencies to reach a resolution.
As Compliance Week previously reported, Ally Financial and Ally Bank agreed last year to pay $98 million to the Justice Department and CFTC for engaging in similar auto-lending discrimination practices. The settlement represented the largest ever in an auto loan discrimination case.