Commitment to Fair Lending Practices

Toyota Unit Enters $21.9M Settlement Over Alleged Auto Loan Racial Bias

Wall Street Journal | Toyota Motor Credit agrees to change pricing, compensation system to reduce dealer’s discretion to charge extra interest for certain loans

WASHINGTON | Federal regulators have reached a $21.9 million settlement with Toyota Motor Corp.’s U.S. financing unit over policies that allegedly overcharged minority borrowers for auto loans.

It is the fourth settlement that regulators have drawn from auto lenders over the past two years about suspected racial discrimination, part of an expanding federal scrutiny of that issue.

Source: Wall Street Journal | Read the full article here.