Toyota Says ‘No Surprise’ About CFPB Probe of Captives

Toyota Financial Services has a good working relationship with the Consumer Financial Protection Bureau and has been providing the agency and the Department of Justice with all requested information related to its lending practices, spokesman Justin Leach told Auto Finance News. The CFPB and DOJ are probing TFS and several other large captives for possible lending discrimination.

Leach said that CFPB had indicated “some time ago” that it wanted to better understand dealer participation. “So when they began to inquire officially with captive finance companies, it was certainly no surprise,” he wrote in an email.

Leach pointed out that TFS does not track the race or ethnicity of its customers or credit applicants, and these are never factors in any credit or pricing decision. “As the best-selling automotive brand among diverse communities, with a No. 1 share of market among African-Americans, Asian-Americans, and Hispanics, we take seriously our commitment to supporting diversity and inclusion through every aspect of our business,” Leach said.