Toyota Ordered to Pay $60 Million for Misleading on Auto Loans

The lending arm of Toyota Motor Corp. will pay $60 million to settle allegations by a US regulator that it misled customers into buying extra products that boosted their payments and then gave them a runaround when they tried to cancel.

Toyota Motor Credit Corp. allegedly lied about whether the extras were mandatory or rushed through paperwork to hide them, according to a Monday statement by the Consumer Financial Protection Bureau. Toyota unreasonably hindered customers who tried to cancel, and if they succeeded, it withheld refunds by applying the sum to the loan’s principal, the CFPB said. The lender ...