A class action lawsuit has been filed against Toyota Finance Australia, alleging the payment of commissions to dealers who set interest rates higher than the base rate, a previously banned practice.
The case centers around Toyota Finance Australia, involving allegations that it paid commissions to dealers who set interest rates higher than the base rate, a practice that was previously prohibited by authorities.
The suit was filed after a regulation was allegedly violated, allowing dealers to set higher interest rates for auto loans above the base rate set by Toyota Finance, with the difference allegedly returned to the dealers in the form of “flexible fees.” It is alleged that customers were not informed that the dealers had set the interest rate or term of the loan.
The lead plaintiff, Belinda Jenner, represented by Echo Law, claims the finance commission “provided an inducement” and created “self-interest,” which the lawsuit claims created “injustice” for consumers, court documents reveal.
The Australian Securities and Investments Commission (ASIC) is understood to have formally banned flexible fees in the car finance market in 2017.
Toyota Finance Australia issued a response stating, “Toyota Finance Australia Limited has not received a statement of claim so we are unable to comment.” The company also encouraged customers to contact the Toyota Finance Customer Services team for any questions about their finance contract.
According to the law firm representing the plaintiff, the case seeks to help class members have their auto loans discharged.
Road and Transport Journalist Ben Zachariah from Drive contributed to the content.
The class action lawsuit filed against Toyota Finance Australia over the alleged payment of commissions to dealers who set interest rates higher than the base rate has drawn attention to the alleged violation of financial rules.
The lawsuit claims that Toyota Finance Australia allowed dealers to set a higher interest rate for auto loans above the base interest rate set by the company, with the difference being returned to the dealers in the form of “flexible fees.” It is also alleged that customers were not informed that the dealers had set the interest rate or term of the loan.
Lead plaintiff Belinda Jenner, represented by Echo Law, claims that the finance commission created “injustice” for consumers and that the allegedly prohibited practice created “self-interest” and “provided an inducement” to the dealers.
The Australian Securities and Investments Commission (ASIC) reportedly formally banned flexible fees in the car finance market in 2017.
Toyota Finance Australia has declined to comment, stating that it has not received the statement of claim. The company has also encouraged customers to contact the Toyota Finance Customer Services team for any questions about their finance contracts.
According to reports, court documents show that the plaintiff is seeking to have class members’ auto loans discharged.
The alleged violation of financial rules by Toyota Finance Australia has caught the eye of the public with a class action lawsuit being filed over the alleged payment of commissions to dealers who set interest rates higher than the base rate allegedly set by the company.
According to the lawsuit, the violation allegedly allowed dealers to set a higher interest rate for auto loans above the base rate set by Toyota Finance Australia, with the difference being returned to the dealers in the form of “flexible fees.” It is claimed that customers were not informed about the interest rates or terms of the loan being set by the dealers.
Lead plaintiff Belinda Jenner, represented by Echo Law, claims that the finance commission created “injustice” for consumers and that the allegedly prohibited practice created “self-interest” and “provided an inducement” to the dealers.
In 2017, the Australian Securities and Investments Commission (ASIC) reportedly formally banned flexible fees in the car finance market.
Toyota Finance Australia has not provided a statement regarding the lawsuit, stating that it has not received the claim. It has encouraged customers to contact the Toyota Finance Customer Services team with any questions about their finance contracts.
According to reports, court documents show that the plaintiff is seeking to have class members’ auto loans discharged.
Road and Transport Journalist Ben Zachariah from Drive has contributed to the content.
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