Toyota's Financing Arm Hit With $60M Penalty: CFPB Cracks Down On Unlawful Loan Practices
Portfolio Pulse from Shivani Kumaresan
Toyota Motor Credit Corporation, the auto-financing arm of Toyota Motor Corp (NYSE:TM), has been penalized $60 million by the CFPB for illegal loan practices. The company was found to have prevented borrowers from canceling product bundles that increased their loan payments. Toyota Motor Credit must pay $48 million in consumer redress and a $12 million penalty to the CFPB's victims relief fund. TM shares dropped 2.78% to $187.98 following the news.
November 20, 2023 | 6:16 pm
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Toyota Motor Corp's financing arm has been fined $60M by the CFPB for illegal loan practices, leading to a 2.78% drop in TM shares to $187.98.
The significant penalty imposed by the CFPB on Toyota Motor Credit Corporation for illegal loan practices is likely to negatively impact investor sentiment towards Toyota Motor Corp (TM), as reflected in the 2.78% drop in share price. The news directly relates to TM's financial practices and could lead to concerns about potential additional regulatory scrutiny or financial liabilities. The drop in share price indicates a negative short-term impact on the stock.
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IMPORTANCE 90
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