BOSTON (WWLP) – Hundreds of borrowers across the Commonwealth are expected to be eligible for debt relief and credit repair following a settlement with Toyota Motor Credit Corporation.
Attorney General Andrea Campbell has reached a settlement with Toyota Motor Credit to resolve allegations that the company used certain illegal loan collection practices. More than $7.6 million was secured in the settlement, including $5.5 million in debt relief. The Attorney General’s office says more than 500 borrowers are expected to be eligible for relief.
An assurance of discontinuance alleges that Toyota Motor Credit failed to give consumers enough information about how calculations were made for deficiencies left on their auto loans once their cars were repossessed. The group also allegedly made a high volume of debt collection calls to certain consumers, which was 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.”
Borrowers eligible for relief will be contacted by the Attorney General’s office. Anyone with questions about the lawsuit can contact the Attorney General’s Insurance and Financial Services Division at 617-963-2220.