(MENAFN) On Monday, the Consumer Financial Protection Bureau (CFPB) in the United States declared that it has directed Toyota Motor Credit to remit USD60 million as a penalty for engaging in unlawful lending practices and credit reporting misconduct.
"The company withheld refunds or refunded incorrect amounts on the bundled products and knowingly tarnished consumers’ credit reports with false information," it mentioned in a report.
Toyota is set to compensate affected consumers with $48 million, and an additional $12 million penalty will be directed to the Consumer Financial Protection Bureau's victims’ relief fund, according to the announcement.
"Toyota's lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports," CFPB Director Rohit Chopra stated in a declaration.
According to the Consumer Financial Protection Bureau (CFPB), the bundled products, funded through Toyota Motor Credit, had an average cost ranging from USD700 to USD2,500 per loan.
"Thousands of consumers complained to Toyota Motor Credit that dealers had lied about whether these products were mandatory, included them on contracts without the borrowers’ knowledge, or rushed through paperwork to hide buried terms," it continued.
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