Your Toyota Financial Services Lawsuit Questions Answered
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If your relationship with Toyota Financial Services is causing you stress or financial harm, it’s important to know your legal rights.
You might want to know how to sue Toyota Financial Services, whether you can join a Toyota Financial Services lawsuit, how to get compensation from Toyota Financial Services, or how to hire a lawyer against Toyota Financial Services.
Below are some of the most commonly asked questions about Toyota Financial Services, and some answers.
Editor’s Note: FairShake is not an attorney, law firm, or financial advisor. Our content team conducts research to the best of our ability to ensure this content is accurate, but it does not replace professional financial or legal advice.
What kind of company is Toyota Financial Services?
Toyota Financial Services is a brand that provides auto financing including retail and wholesale financing and leasing to Toyota dealers and consumers throughout North America. Customers can use Toyota Financial to get financing for Toyota and Lexus brand vehicles.
Toyota Financial Services’ parent company is Toyota Motor Credit Corporation, which is also shortened to TMCC. TMCC is a subsidiary of Toyota Motor Corporation, the manufacturer of Toyota cars.
ls Toyota Financial Services legit?
Yes, Toyota Financial Services is a legitimate company. However, even legitimate companies sometimes make mistakes and take advantage of their customers. So if you have a contract with Toyota financial and you are currently having issues, you might consider your options. You can even consider reaching out to an attorney who can review the terms of your contract and whether to bring a Toyota Financial Services lawsuit.
Who is the CEO of Toyota Financial Services?
As of 2023, the current President & CEO of Toyota Financial Services is Mark Templin.
Where is Toyota Financial Services headquarters?
The headquarters of Toyota Financial Services is in Plano, Texas, at the aptly named 6565 Headquarters Drive.
How do I contact Toyota Financial Services?
According to the company, the best way to contact Toyota Financial Services is to call their customer service line at 1-800-874-8822, Monday through Friday from 8:00 a.m. through 5:00 p.m. local time. There are separate customer service numbers you can call for specific issues like excess wear and use protection (888-548-8821), prepaid maintenance plans (800-228-8559), or vehicle service agreements which can be found on their website.
You can also request additional information online or log into your account and send secure messages through that portal.
If you want to send something through the mail about your account like a complaint, they provide the following address:
Toyota Financial Services
PO Box 22171
Tempe, AZ 85285.
If you have tried to contact Toyota Financial Services but they aren’t offering legitimate help for your issue or you can’t get the right kind of resolution, there are other options.
You can speak with an attorney about alternatives that might apply to your situation, such as using consumer arbitration or suing Toyota Financial in small claims court.
Is there a lawsuit against Toyota Financial Services?
There have been multiple recent lawsuits against Toyota Financial Services, including:
In February of 2023, the attorney general for the state of Massachusetts announced a settlement over allegations of illegal auto loan collection practices. Toyota Financial paid a sum of $7.6 million dollars to over 500 borrowers throughout Massachusetts.
If you have an issue with your account, read on to learn more about how to sue Toyota Financial Services, or tell us about your issue below.
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What laws apply to Toyota Financial Services?
When taking out a car loan from Toyota Financial Services, you’re protected by a variety of federal and state laws.
Some of the laws that apply to Toyota Financial Services car loans include:
Laws requiring Toyota Financial Services to disclose important information about your loan:
- The Truth in Lending Act – The Truth in Lending Act (TILA) guarantees your right to get relevant details before taking out a car loan. It requires that creditors like Toyota Financial Services provide a written disclosure of important terms including the annual percentage rate (APR), finance charge, monthly payment amount, payment due dates, amount financed, length of the credit agreement, and any charges for late payment. If Toyota Financial Services fails to provide this information prior to obtaining your signature, they’ve violated the Truth in Lending Act and you may have a legal complaint.
- Consumer Leasing Act – The Consumer Leasing Act is another federal law that guarantees you receive additional important information when leasing a car. This law requires whoever is offering a lease (in this case Toyota Financial Services), to disclose certain information including:
- the amount due at lease signing or delivery;
- the number and amount of monthly payments;
- all other fees charged under the agreement, such as license fees, taxes, payments due at the end of the lease, and any charges for excess mileage.
- penalties charged for late payment or default;
- conditions under which the lease can be ended early (and penalties for doing so);
- whether you have a right to buy the vehicle at the end of the lease and the price to do so.
- Credit Practices Rule – If you’re a cosigner on a Toyota Financial Services loan, the Credit Practices Rule provides important protections. This is a regulation from the Federal Reserve that, among other things, protects the rights of cosigners on loans. Creditors like Toyota Financial Services must provide a written notice to potential cosigners about their liability if the other person fails to pay. The Act also prohibits late charges in some situations and prohibits creditors from using certain contract provisions that the government has found to be unfair to consumers.
- Consumer Credit Protection Act – If Toyota Financial Services denied you credit, they may owe you information under this law. The Consumer Credit Protection Act requires certain creditors to provide consumers with information if the creditor denies them financing.
- Toyota Financial Services is bound by Risk-Based Pricing rules. This rule means Toyota Financial Services has to provide you a written notice if they gave you less favorable lending terms than other borrowers with similar credit histories and credit scores. Toyota Financial Services has to explain why you received less favorable lending terms.
Laws that protect you if the car you’ve financed through Toyota Financial Services is faulty:
- Uniform Commercial Code (“UCC”) – The Uniform Commercial Code is a set of state laws that provide you fundamental rights in consumer transactions. Every state and DC has adopted all or most of the UCC. Article 2 of the UCC defines key laws that protect you in buying or leasing a car including lemon laws and express warranties. Article 2A of the UCC applies specifically to leases.
- Lemon laws enable purchasers to have a defect repaired, or to receive a replacement or a refund. You can find more information on your state’s lemon laws here.
- An express warranty is a fact or promise provided by the seller that becomes enforceable by the buyer as a “basis” of the sale.
- Magnuson-Moss Warranty Act – If you’ve been offered a warranty on your vehicle, the Magnuson-Moss Act provides important protections. This federal law applies to any consumer goods with a retail price of $15 or more, and requires a seller making an express warranty to fully disclose the warranty’s terms and conditions. Sales agreements may not limit consumers’ rights under any implied warranties; may not impose any duties on consumers to take advantage of warranties other than notifying the seller of defects; and the seller must attempt repair, replacement, or refund if possible
Laws that protect you against lending discrimination by Toyota Financial Services:
- Equal Credit Opportunity Act (“ECOA”) – The ECOA is a federal act that prohibits denying credit, or charging more for credit, based on a list of protected factors including race, color, religion, national origin, sex, marital status, age, and receipt of public assistance. If you feel you’ve been discriminated against in applying for a Toyota Financial Services loan, this law may apply.
Laws that protect you against Toyota Financial Services debt collectors:
- Fair Debt Collection Practices Act (“FDCPA”) The FDCPA protects you from aggressive debt collection tactics by regulating the ways in which companies like Toyota Financial Services are allowed to collect on a debt.
If you believe that Toyota Financial Services has punished you or denied you financing because of discrimination, incorrectly reported information on your credit report, or violated any other federal laws that apply to their organization, you may wish to speak with an attorney about how to sue Toyota Financial Services.
Also from FairShake:
- Introduction to Car Lending Laws
- The Truth in Lending Act — Explained
- 10 Consumer Protection Laws to Know About
- What is the Fair Debt Collection Practices Act?
- Understand the Fair Credit Reporting Act
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What can I do if a salesperson lied to me about a Toyota Financial Services loan?
If a salesperson lied to you about a Toyota Financial Services loan, you may be able to start a lawsuit.
Some common tactics by creditors that violate the Truth in Lending Act (TILA) include failing to accurately disclose the finance charge and APR, or applying penalty fees exceeding TILA limits.
If Toyota Financial Services misled you to make a sale you are entitled to take action against them. Tell us more about it below for the chance to be matched with an attorney.
If you were sold a car with defects you didn’t know about, you can also pursue your rights under the law.
If your car is under warranty, lemon laws require the vehicle manufacturer to repair it. If your vehicle cannot be repaired or a defect is too severe, you are entitled to a refund or a replacement vehicle. (The specifics of lemon laws vary by state, however. In some states lemon laws only cover new vehicles, while in other states they apply to both new and used vehicles.)
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Can a Toyota Financial Services car loan be discharged in bankruptcy?
How your Toyota Financial Services car loan will be treated in bankruptcy depends on the type of bankruptcy you’re filing for. Unfortunately, you’re unlikely to be able to wipe out the debt while keeping the car.
Under a Chapter 7 bankruptcy or “liquidation bankruptcy,” a car loan will not be discharged because it is a secured debt.
- Secured creditors—which include car loan holders—can require you to sign a reaffirmation agreement. A reaffirmation agreement between the creditor and debtor waives the discharge of debt in a pending bankruptcy proceeding. You will be required to maintain your monthly payments – upon default, the creditor has the right to repossess your car.
- However, Chapter 7 grants you the right to redeem your car. To redeem your vehicle, you must pay a lump sum equal to its replacement value, which can be much lower than the amount that remains on your loan.
A Chapter 13 bankruptcy, or “wage earners bankruptcy” allows a debtor to keep the property while restructuring the debts to pay them over time, usually three to five years.
- If you default on payment schedule coming out of Chapter 13 bankruptcy, the lender can still repossess your car.
- If the balance of your loan is more than your car is worth, you can pay back the balance based on the current value rather than the contracted loan balance. This is known as a “cram down” and can lower your payment if you owe more than the car is worth.
How do I file a complaint against Toyota Financial Services?
There are several ways you can file a complaint against Toyota Financial Services.
- You can try your luck with Toyota Financial Services customer service. This ensures the company is aware of your issue, but if you’ve made it this far you’ve probably tried this already and still have serious issues.
- You can also file a complaint with your state government. If you believe that Toyota Financial Services has violated state laws, you can reach out to your state attorney general or the other relevant body in your state. This doesn’t guarantee a resolution, but it’s worth knowing about as it could result in punitive action against Toyota Financial Services.
- The most effective resource may be to bring a legal action to sue Toyota Financial Services. You should consider working with a lawyer against Toyota Financial Services if you opt for this route, as they’ll know the procedures to follow and can give you an idea of what to expect. FairShake helps match individuals to lawyers – tell us more about your issue below.
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How many payments can you miss before Toyota Financial Services repossesses the car?
There is no specific number of payments you can miss before Toyota Financial Services repossesses your car, but the industry average is three. Once you miss three or more payments, auto loan companies can start the repossession process. However some companies only provide a 60 day grace period (meaning two missed payments).
If you have extenuating circ*mstances it may be in your best interest to reach out to Toyota Financial Services to let them know what’s going on and try to find a temporary resolution before repossession.
Will missed payments to Toyota Financial Services hurt my credit?
Yes, missed payments to Toyota Financial Services will hurt your credit score. You can improve your credit score by making as many timely payments as you can, and limiting how many/how often you have a missed payment. The best thing you can do in this situation is contact Toyota Financial Services to see if they can make a note in your account or provide some temporary relief if you know you will miss a payment. If you continue to miss payments, your account can be sent to collections, which gets reported to the credit bureaus and will harm your credit score even more.
Toyota Financial Services has the right to report payment information, including missed payments, to the credit bureaus. If they have incorrectly reported information, though, you can seek a resolution with the Fair Credit Reporting Act.
Can I get a lawyer against Toyota Financial Services?
Yes, you may be able to get a lawyer against Toyota Financial Services. A lawyer can potentially help you get compensation and justice from Toyota Financial Services, depending on your circ*mstances. And an attorney can help you figure out what legal options you have if Toyota Financial Services has broken the law or caused you financial harm.
If you share your issue with FairShake, we may be able to match you with an attorney. Attorneys with whom FairShake partners will never charge you up front. You only pay if you get compensation.
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How do I sue Toyota Financial Services?
If you have an issue with Toyota Financial Services, you might be able to sue Toyota Financial Services. How you sue is based on your circ*mstances, the issue you have with Toyota Financial Services, and which laws apply to that issue. It is best to speak with an attorney who can look over your loan contract and provide legal advice.
What you are allowed to do and how much you can get in compensation if you do sue Toyota Financial Services varies from one court to the next and depends upon the issue you have, what laws were broken, and what court you use. An attorney can help you review which options work best for your circ*mstances and the compensation you want.
Some ways customers sue companies like Toyota Financial Services:
Consumer Arbitration
Consumer arbitration is a legally binding alternative to traditional lawsuits. The terms of your contract might say that you are not allowed to join an existing Toyota Financial Services lawsuit or sue Toyota Financial Services in other courts, in which case, consumer arbitration can help you get compensation or a resolution. With consumer arbitration you can still work with an attorney but your issue will be decided by an independent arbitrator rather than a public court.
Small Claims Court
Another option is to sue Toyota Financial Services in small claims court. Small claims courts are limited in the sort of claims they can take: there are limits for each state on the amount of monetary compensation they can provide, and they may not be able to provide non-financial relief.
Federal or State Courts
If Toyota Financial Services violated state or federal law, you might be able to sue them at the state or federal level..
