Toyota Financial Services was approved for early termination of a 2016 consent order — which alleged the captive’s dealer compensation model resulted in higher interest rates for minority borrowers — and the lender intends to raise markup caps following the decision, the company told Auto Finance News.
The consent order was lifted May 1, but is contingent on final court approval expected to come down in the company’s favor in the coming weeks, according to a filing with the Securities and Exchange Commission on Tuesday.
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