CFPB and DOJ Settle with Toyota Motor Credit

On Tuesday, February 2, 2016, the CFPB announced a settlement, in conjunction with a Department of Justice (DOJ) action, with Toyota Motor Credit Corporation to resolve discriminatory outcomes in auto lending.  Under the agreement, Toyota Credit will pay $21.9 million in restitution to African American and Asian or Pacific Islander consumers for pricing disparities from non-Hispanic white borrowers.  Toyota Credit will also institute compliance procedures and change their dealer markup compensation structure to 1.25 percent for loans five years or less and 1 percent for loans over five years.  Notably, the CFPB did not order the payment of civil money penalties because Toyota Credit took “proactive” steps to address fair lending risk by “substantially reducing or eliminating discretionary pricing and compensation systems.”