U.S. accuses Toyota credit unit of discriminatory loan pricing, from Chicago Tribune.
Toyota Motor Credit Corp. said federal authorities have raised concerns about the pricing of its auto loans, saying that the loans could be discriminatory, and warning that Toyota’s lending arm could face financial penalties.
Toyota Motor Credit said that, on Nov. 25, the Consumer Financial Protection Bureau and the Justice Department sent it a letter alleging “discriminatory pricing of loans to certain borrowers in contravention of applicable laws,” and warning that it could face legal action unless it agrees to “a voluntary resolution.”
“The agencies have indicated that they are seeking monetary relief and implementation of changes to our discretionary pricing practices and policies,” Toyota said in a SEC filing on Nov. 25.
Toyota said it plans to cooperate.