Toyota fined $60 million for illegally bundling high-cost protection products

Complaints by thousands of Toyota customers, that they were scammed by the automaker’s in-house financing services unit by buying products they couldn’t cancel, have resulted in $60 million in fines to settle charges from the Consumer Financial Protection Bureau.

According to the charge, Toyota Motor Credit sells products, typically at a cost of $700 to $2,500 per loan, that offer protection when vehicles are stolen, damaged or require parts and service after warranties expire.

The agency said that thousands of consumers subsequently complained that dealers lied about whether these products were mandatory, or rushed the paperwork so they wouldn't realize how much they were paying.