Toyota Motor Credit Accused of Discriminatory Lending

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.

SEE ALSO: Ally Financial to Pay $98M Over Lending Bias

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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[Source: Reuters]

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