Tag Archives: settlement

Motorsport

Feds Fine Toyota $60M For Unfair Lending Practices and False Credit Reports

Toyota Motor Credit Corporation (TMCC), the financing arm of Toyota, has agreed to a $60 million settlement with the Consumer Financial Protection Bureau (CFPB). The CFPB accused TMCC of unlawfully preventing consumers from canceling bundled products often included in vehicle purchases and making false reports that negatively impacted buyers’ credit reports.

According to the CFPB, consumers who wanted to cancel unwanted products were directed to internal customer service teams where the process of getting them removed or refunded was unnecessarily difficult. The specific types of products are not specified, but the added costs ranged from $750 to $2,500 per auto loan. In some cases, Toyota dealerships allegedly misrepresented these products as mandatory, and refunds were sometimes not issued for the full amount. The CFPB reported that 118,000 customers encountered obstacles when trying to cancel unwanted services between 2016 and 2021.

CFPB Director Rohit Chopra stated, “Toyota’s lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports. Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers.”

On the credit front, the CFPB announced that TMCC falsely reported some accounts as delinquent to credit agencies, even though customers had returned lease vehicles. Furthermore, TMCC did not promptly correct these errors, resulting in incorrect data on the credit reports of 27,500 TMC customers, which lowered their credit scores.

Although Toyota admitted no wrongdoing, it agreed to the terms of the settlement. In a statement to Motor1, Toyota said, “Toyota Motor Credit Corporation is committed to doing what’s right for our customers and strives to consistently follow all federal and state laws in our sales, customer service, and administrative practices.”

As part of the settlement, TMCC will pay $48 million to affected customers and a $12 million penalty to the CFPB victims relief fund.

Featured

How To Make A Car Insurance Claim? Here Are A Few Expert Tips And Suggestions


From accident site to claim settlement, here’s a step-by-step guide to claim your vehicle insurance

Introduction

Car insurance serves as a safety net when accidents or unexpected damages occur. Making a car insurance claim can be a complex process, but understanding the steps involved and following expert tips can help streamline the experience. In this article, we will discuss the essential steps and provide expert tips on how to make a car insurance claim effectively.

Prioritise Safety and Documentation

Prioritise everyone’s safety as soon as possible following an accident. Check for any injuries of all passengers in your vehicle, and if needed that of any other vehicle that may have been involved. After ensuring the health and safety of everyone present, thoroughly document the incident. Take detailed pictures of the accident scene, including the damage to all involved vehicles, the state of the road, and even any nearby landmarks, if needed. This documentation will serve as an important piece of proof during the claims procedure.

Inform the Authorities and Your Insurer

Inform your insurance provider of the incident as soon as possible, and be sure to give them the complete information about the accident. In case of any severe damages or injuries, inform your local authorities as well, and get a copy of the police report that you filed. Following the reporting guidelines outlined in your insurance policy is crucial, as failing to do so could have an impact on your claim.

Understand Your Policy Coverage

Get acquainted with the specifics and restrictions of your auto insurance policy. To learn what damages and expenses are covered, review your policy document or speak with your insurance representative. With this information, you’ll be able to handle the claims procedure more skillfully and make sure you get paid fairly.

Follow the Claims Process

You will be guided through the claims process by your insurance provider. Usually, they will designate a claims representative who will evaluate the documentation, evaluate the damages, and direct you through the necessary procedures. To speed up the procedure, work closely with the claims agent and give precise information. Be ready to complete claim forms and provide more documentation as needed.

Obtain Repair Estimates

The insurance provider will assess the damages after receiving your claim and can ask for repair cost estimates. Consult reputable repair facilities and get written estimates for the work. Send your insurer a copy of these estimates for evaluation. In some circumstances, the insurer might have a network of authorised garages where you can get the repairs done, frequently with the advantage of cashless options.

Be Prepared for Evaluation

If the damages are considerable, insurance companies could hire a surveyor to make an assessment. The surveyor will examine the vehicle and the supporting documentation before making an objective judgment. Cooperate with the surveyor and give them all the information they need. Make sure that all damages are accurately documented because their assessment will affect how the claim is settled.

Maintain Communication and Follow-Up

Keep the lines of communication open with your insurance provider at all times during the claims procedure. Keep in touch with your claims agent, be timely in your responses to questions or requests for more information, and keep a record of significant dates and claim reference numbers. Regular follow-up helps handle any difficulties as they arise and ensures that your claim moves forward without hiccups.

Be Aware of Excess and Claim Settlement

Recognize the deductible or excess specified in your policy, which is the sum you are required to contribute to the settlement of the claim. The total claim compensation will be reduced by this sum. Also, be aware of the timetable and process for claim settlement. To prevent needless delays, deliver any needed documents or information right away.

Conclusion

Making a car insurance claim can be difficult, but by heeding some advice from professionals, you can manage the procedure more successfully. Put safety first, record the occurrence, notify the authorities and your insurer right away, and become familiar with your policy’s coverage. Get repair estimates, carefully follow the claims procedure, and get ready for the evaluation. Stay in constant contact with your insurance provider, and be informed about excess and claim settlement information. You can raise the likelihood that your auto insurance claim will go smoothly and successfully by doing this.