On February 2, 2016, Toyota Motor Credit Corporation (TMCC) announced a voluntary agreement with the Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Justice (DOJ) that addressed discretionary dealer compensation practices. TMCC was the latest of several lenders to enter into such an agreement.
As noted in the announcement, while we respectfully disagree with the agencies’ methodologies to determine whether industry practices have been discriminatory, we determined that this agreement was the preferred resolution of the agencies’ review. We believe that this agreement helps preserve consumer financing options while fairly compensating our dealer partners and upholding our commitment to fair lending practices. Most important to us is the fact that during their review, the agencies did not contend that TMCC intentionally discriminated against our customers. Accordingly, TMCC denies any wrongdoing and notes that this voluntary agreement does not include an assessment of civil money penalties.
That’s no surprise because anyone who works with our company can attest to that fact that we do not discriminate or tolerate discrimination of any kind, even perceived or unintentional, from our team members or business partners – this principle extends to fair lending practices. This principle is underscored by commitment to and leadership position in Diversity and Inclusion.