Today the Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) resolved an action with Toyota Motor Credit Corporation, under which Toyota Motor Credit will change its pricing and compensation system to substantially reduce dealer discretion and accompanying financial incentives to mark up interest rates. As part of today's order, Toyota Motor Credit is also required to pay up to $21.9 million in restitution to thousands of African-American and Asian and Pacific Islander borrowers who paid higher interest rates than white borrowers for their auto loans, without regard to their creditworthiness, as a result of its past practices.

"We are dedicated to promoting fair and equal access to credit in the auto finance marketplace," said CFPB Director Richard Cordray. "Toyota Motor Credit is among the largest indirect auto lenders, and we commend its industry leadership in shifting to reduced discretion to address the significant fair lending risks."


The investigation concluded that Toyota Motor Credit's policies:

  • Resulted in minority borrowers paying higher dealer markups
  • Affected thousands of minority borrowers

Under the CFPB order, Toyota Motor Credit must:

  • Substantially reduce the amount by which loans can be marked up
  • Pay up to $21.9 million in remediation to affected consumers
  • Pay to hire a settlement administrator to distribute funds to affected consumers