Massachusetts Attorney General Campbell Secures $7.6 Million in Settlement With Toyota
In full transparency, the following is a press release from the Massachusetts Attorney General’s office submitted to SOURCE media.
BOSTON – Massachusetts Attorney General Andrea Joy Campbell today, February 2, announced a settlement reached with Toyota Motor Credit Corporation to resolve allegations of certain illegal auto loan collection practices, securing more than $7.6 million, including approximately $5.5 million in debt relief.
More than 500 borrowers across the state are expected to be eligible for relief under the settlement.
The assurance of discontinuance, filed on January 17th in Suffolk Superior Court, alleges that Toyota Motor Credit failed to give certain consumers sufficient information about the calculation methods for deficiencies left on their auto loans after their cars were repossessed. The settlement also alleges that Toyota Motor Credit made excessive collection calls to certain consumers, in violation of the AG’s Debt Collection Regulations.
“Consumers facing repossession and collection actions on their vehicles deserve clear and transparent information from auto lenders,” said AG Campbell. “It is our hope that the debt waiver and funds secured through this settlement will assist hundreds of residents in getting the relief they need and deserve – and build on our efforts to provide economic opportunity to families across Massachusetts.”
Today’s settlement is part of the ongoing work of the AG’s Office to protect consumers, especially from unfair and predatory collection practices. The AG’s Office has previously pursued Credit Acceptance Corporation (CAC) for failing to provide similar information to auto borrowers after auto repossession – this claim was part of a much broader suit against CAC relating to unfair lending, collection and securitization issues.
In August 2020, the AG’s Office sued CAC and announced a settlement in September 2021 for over $27 million in cash as well as debt forgiveness and credit repair for affected consumers.
Last year, the AG’s Office entered into a $5.6 million assurance of discontinuance with Santander Consumer USA relating to its alleged failure to provide post-repossession information to borrowers.
Borrowers eligible for relief under this settlement will be contacted by the AG’s Office. Anyone with questions about settlement eligibility should contact the Attorney General’s Insurance and Financial Services Division at 617-963-2220.
This matter was handled by Assistant Attorney General Andrew Labadini and Mathematician Dr. Burt Feinberg, both of the AG’s Insurance and Financial Services Division.