While we respectfully disagree with the agencies’ methodologies to determine whether industry lending practices have been discriminatory, the company shares the agencies’ commitment to ensuring that consumers can count on competitive and fair auto financing options. The actions we’re taking under this agreement are intended to further that commitment.
TMCC, like many purchasers of retail installment sales contracts from dealers, allows dealer participation on some contracts to permit the dealers to be compensated for arranging credit for customers in the indirect lending process. Over the past two and a half years, we have dedicated significant resources to implement a robust compliance program in an effort to better serve our customers and meet the CFPB’s expectations.
- Dealer particiation caps will be limited to 125 basis points [1.25%] for contracts of 60 months or less and 100 basis points [1.00%] for contracts with longer terms.
- A three-year term that can be reduced to two years if certain conditions are met.
- TMCC will contribute up to $21.9 million towards a fund payable to affected borrowers.
Fair Lending Principles
As an indirect lender, we have no visibility into the race or ethnicity of our customers or credit applicants, and these factors have no bearing on our credit or pricing decisions.
Equally important, we take seriously our commitment to diversity and inclusion, and that commitment extends to fair and responsible lending practices. You can learn more about our Fair Lending Policy here.
A Commitment to Diversity & Inclusion
Since opening our doors in 1983, we’ve made diversity and inclusion a central part of our business practices. We’ve launched programs to build upon that commitment, becoming a leader in the auto finance industry along the way.
Most recently, the United States Hispanic Chamber of Commerce (USHCC) selected Toyota Motor North America as the 2015 “Corporation of the Year.”
Additional information about our commitment to diversity and inclusion can be found at LFSFairLending.org/diversity-and-inclusion/.
Certain borrowers whose loans were originated starting in January 2011 may be eligible to receive a payment from a fund being administered by a claims administrator.