MA, Toyota Reach $7 Million Settlement On Illegal Loan Allegations: AG

BOSTON, MA — The state has settled a suit with Toyota Motor Credit Corporation that secures $7.6 million, with more than $5.5 million going to debt relief. More than 500 borrowers across Massachusetts will be eligible for relief under the settlement, according to a statement from Attorney General Andrea Joy Campbell.

The suit was over Toyota Motor Credit's alleged use of illegal auto loan collection practices. The company was accused of failing to provide "certain consumers sufficient information about the calculation methods for deficiencies left on their auto loans after their cars were repossessed," according to the statement.

The settlement also alleges that Toyota Motor Credit made excessive collection calls to certain consumers.

“Consumers facing repossession and collection actions on their vehicles deserve clear and transparent information from auto lenders,” Campbell said in a statement. “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.”

The attorney general's office will contact borrowers eligible for relief under this settlement.

Anyone with questions about settlement eligibility can contact the Attorney General’s Insurance and Financial Services Division at 617-963-2220.