A class action lawsuit has been filed against Toyota Major Credit Corporation for violating California laws governing automobile repossession. The lawsuit was filed in Los Angeles County Superior Court in June, and alleges that the company illegally inflated charges in order to repossess the vehicle and sell it for a higher price, and then sent the plaintiff another inflated charge for the balance after it sold. The complaint says that Toyota Major Credit Corporation violated California’s Consumers Legal Remedies Act and Unfair Competition Law Statute and seeks compensation for those who have suffered financially from the company’s fraudulent practices, as well as a court order prohibiting Toyota/Lexus Financial Services from collecting any deficiency balances. The lawsuit also claims that the credit company did business under fictitious names, Toyota Financial Services and Lexus Financial Services. As a class action lawsuit, the complaint states that several more people were sent inaccurate and inflated post-repossession notices.
The complaint focuses on a consumer who leased Toyota Camry from a dealership in Northern California in 2014. The vehicle in question was then repossessed the next year and sold at auction. The consumer received a statement shortly after charging unlawfully inflated sums disguised as ‘adjusted leased balance,’ and ‘accrued but unpaid lease payments,’ which were calculated based on the presumption that the contract was terminated on a date after the vehicle was repossessed. According to California law, it is illegal for automobile credit companies to send consumers deficiency balances after vehicles have been repossessed. It is also unlawful for credit companies to charge consumers for any actions associated with repossession such as the repossession itself, storage, reconditioning, transportation, sale and auction charges that were greater than the amounts listed in the notice for intent of sale at auction.
If you or a loved one have fallen victim to fraudulent practices by credit companies such as the Toyota Major Credit Corporation, the lawyers at Hodes Milman Liebeck are there for you in your time of need. Contact us today online at hmlm.com or call 866-730-1976 for a complimentary case evaluation.