Video: The US Consumer Financial Protection Bureau (CFPB) has asked Toyota to pay a record fine of $60 million.
According to information from the CFPB, Toyota Motor Credit Corporation, the automaker’s financial arm, lied to consumers about the mandatory nature of certain product packages. These packages include Secured Asset Protection and Credit Life and Accident Health Insurance, which are added to the monthly car loan without the customer’s consent.
It’s worth noting that these products cost an average of $700 to $2,500 per loan, increasing the financial burden of American consumers. Not only that, when customers want to cancel these packages, Toyota has created problems from asking for cancellation in writing to illegally withholding refunds.
| Toyota was asked to pay more than 1,400 billion VND in compensation for deceiving customers. |
Faced with protests from consumers, Toyota even directed them to a “dead end” hotline where they were forced to maintain unwanted products. What makes the situation worse is that to remove products from the contract, customers must submit a request in writing, a process that makes it possible for Toyota to unreasonably delay refunds.
Not only that, the CFPB also revealed that Toyota does not refund insurance premiums Advance payment to those who have paid off the loan or terminated the car lease contract. The company even relied on miscalculations, leading to incorrect refunds to consumers who canceled their service contracts.
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| Toyota is facing one of the biggest challenges in its financial history. |
Faced with increasing pressure to pay mortgage debt, the CFPB did not hesitate to request it Toyota Motor Credit paid 32 million USD to consumers who were deceived, $9.9 million to those who tried to cancel but failed, $52,000 to those who were not properly refunded, and $12 million in restitution and penalties. At the same time, Toyota was also forced to immediately stop its illegal activities.
With this allegation of fraud, Toyota is facing one of the biggest challenges in its financial history, while also raising big questions about business ethics in this large auto industry. .