Class action filed against Toyota over alleged dealer finance incentives – report

-

A class action has been filed against Toyota Finance Australia, claiming it paid commissions to dealers that set higher interest rates above the base rate – a practice that was previously outlawed by authorities.

Toyota’s financial division is facing a class-action lawsuit in Australia over allegations it breached financial regulations.

According to website Lawyerly, Toyota allegedly allowed its dealers to set a higher interest rate on car loans above a base interest rate set by Toyota Finance, with the difference reportedly paid back to the dealers as ‘flex commissions’.

It’s alleged customers were not told the interest rate or loan term had been set by the dealers.

Lead plaintiff Belinda Jenner, represented by Echo Law, claims the financial commission “provided an incentive” and created “self-interest,” which the lawsuit claims created “unfairness” for consumers, court documents reveal.

It’s understood the Australian Securities and Investment Commission (ASIC) formally banned flex commissions in the car finance market in 2017.

MORE: Federal Court orders Honda to pay $6 million for misleading conduct

“Toyota Finance Australia Limited has not been served with a statement of claim, so we are unable to comment,” a spokesperson for Toyota Finance Australia told Drive.

“As always, if customers have any questions about their finance contract, we encourage them to contact the Toyota Finance Customer Service team on 137 200 from 8:30am to 5.30pm AEDT Monday to Friday (excluding public holidays).”

Court documents reportedly show the plaintiff is seeking to allow members of the class action to be able to nullify their car loans.

The post Class action filed against Toyota over alleged dealer finance incentives – report appeared first on Drive.

Comments

Post a Comment

Popular posts from this blog

JLR: Consumer confidence on the rise post-election

-
Jaguar Land Rover Australia believes consumer confidence has returned to the luxury car market following the recent Federal election, where the sitting LNP government was returned to power. Speaking to local media at this week’s launch of the new Range Rover Evoque, JLR Australia managing director Mark Cameron said the conservative coalition victory has already been felt in the company’s showrooms.
Read more

Teacher accused of using rented Toyota Supra for land-speed record attempt

-
Image
A high-school teacher in the US could be more than $6000 out of pocket if he is found to have violated the terms of use of a rented Toyota Supra driven to a top speed record. A US high school teacher is facing legal action – and $US4000 ($AU6000) in costs – after being accused of renting a turbocharged Toyota Supra performance coupe from a car-sharing service and used the vehicle in a racing competition without the owner’s knowledge. The high-school teacher from Indiana – and his team of female mechanic students – were on their way to compete in the 2023 U.S. Mile land-speed trials in Texas last month. The girls and their teacher had built a high-performance Chevrolet S10 pick-up for the ‘Texas Mile’ – a competition which sees vehicles try to achieve the highest possible speed from a standing start within one-mile (1.6km) on a runway. However, the 1997 Chevrolet S-10 ute suffered a mechanical failure on the way to the event. Due to the hard work put in to make the 1800km j...
Read more

Donald Trump’s Lamborghini Diablo sets new auction price record

-
Image
The 1997 Diablo VT Roadster – custom-ordered by the now-former US president – has smashed records after selling for more than a million dollars at auction. UPDATE, 1 February 2024: A 1997 Lamborghini Diablo VT Roadster previously owned by former President Donald Trump has set a new record for the Italian supercar. Bidding pushed up the hammer price for President Trump’s Lamborghini to $US1.1 million ($AU1.67 million), far exceeding the average auction price paid for Diablo models at $US277,000 ($AU407,000). According to auctioneers Barrett-Jackson, bidding exceeded the $US1 million mark in just 90 seconds. According to Classic.com , the average value of the Lamborghini Diablo has risen almost 80 per cent in just three years. The original stories continues unchanged below. View this post on Instagram A post shared by Barrett-Jackson (@barrett_jackson) 13 January 2024: A 1997 Lamborghini Diablo VT Roadster reportedly on...
Read more

Honda confirms NSX successor in the works

-
Image
Honda boss has again confirmed the car maker is working on an electric sports car which may see the hallowed NSX badge return to showrooms. A successor to the Honda NSX supercar is coming, after Honda CEO Toshihiro Mibe once again confirmed the car maker is working on a new halo electric sports car. Mibe told UK publication Autocar that work was ‘progressing’ with a ‘good analysis’ on an electric sports car being carried out by the Japanese brand’s research and development department. “We have not decided on mass production or timing but, personally, I would like to make it happen.” Honda – which began in September 1948 – has hinted that it would have a halo sports car in showrooms to celebrate its 75th anniversary year. Honda teased two electric sports car concepts in 2022 , seen as successors to the S2000 and the NSX, as it announced a $AU53.7 billion (five trillion Japanese yen) investment in electric technology. Honda also said it would introduce 30 electric cars by...
Read more

2018 Ford Mustang pricing and specs

-
Updated versions of Australia’s top-selling sports car, the Ford Mustang, will be available in dealers from the middle of 2018. There are a number of substantial improvements for the MY18 Mustang. Its looks are being billed as more “athletic”, it comes in more bold colours, gets more in-car technology and active safety systems, and comes […]
Read more

Bear Grylls’ SAS Gulf War buggy for sale, with optional machine gun

-
Image
Here’s your chance to own Grylls’ SAS buggy equipped with a roof-mounted machine gun built for the Gulf War. Image credit: Classic Motor Hub An off-road buggy used by the British Army’s Special Air Service (SAS) and previously owned by celebrity adventurer and former SAS member Bear Grylls is up for sale, and includes a roof-mounted machine gun – with provisions to mount a rocket launcher and anti-tank missile systems, too. Offered by The Classic Motor Hub in Gloucestershire, UK, the 1990 Ricardo Light Strike Vehicle (LSV) is one of 20 built by the British Ministry of Defence (MoD) for use by the elite special forces unit in the 1990-1991 Gulf War. With an asking price of £35,000 ($AU66,400), the open-air LSV is shorter than a Volkswagen Golf hatchback at 4.08m but slightly wider at 2.11m and considerably taller at just over two metres. Classified by the MoD as a ‘Ground Mobile Weapon Platform’, it also includes a deactivated .50-calibre Browning machine gun on top of its ...
Read more

Video: Sony executive uses PlayStation controller to drive company’s first electric car

-
Image
Sony has brought the Gran Turismo video games into real life by driving its latest electric-car prototype – developed with Honda – using a PlayStation controller. But the feature isn’t bound for the road. The latest prototype of the first electric car from Japanese electronics giant Sony was driven onto a stage remotely – without a driver behind the wheel – using a controller for a Sony PlayStation 5 video-game console. Developed in partnership with Japanese auto giant Honda , the electric car – known as the Afeela – was shown in its latest prototype form at the Consumer Electronics Show (CES) in Las Vegas after its unveiling a year ago. The final version of the Afeela electric car is due to open for orders in the first half of 2025, ahead of US deliveries due in 2026, with vehicles planned to be built in North America. However Izumi Kawanishi, president of Sony and Honda’s joint venture – and the executive who ‘drove’ the car on stage with a PlayStation controller – said...
Read more

The Australian road rules that vary by state

-
Image
If you’re thinking about heading interstate over the summer, it’s a good time to do your due diligence regarding state-specific road laws. Travelling interstate over the summer holidays? If you’re thinking about hitting the roads while you’re away from home, it might be worth doing some research about the road rules in advance. RELATED: The road rules we’d change if we could While the broad-brush Australian Road Rules are enforced throughout Australia, all states and territories have their variations that motorists must adhere to regardless of whether they’re just visiting or living locally. Here are some road rules that vary according to which state or territory you’re visiting. Let us know in the comments below what obscure or mainstream road rules are unique to your state and/or territory . Conducting a U-turn Across most Australian states and territories, a U-turn is illegal at any intersection unless there is a ‘U-turn permitted’ sign – except for Victoria, where mot...
Read more

Kia unveils electric van concepts, showroom versions due from 2025

-
Image
Kia is preparing a range of customisable electric delivery vans, cab-chassis utes and people movers pitched at delivery drivers, campervan fans and rideshare operators. South Korean car giant Kia has unveiled a fleet of electric van and people-mover concepts at the Consumer Electronics Show, which are due in showrooms from 2025. The four concepts – described as ‘Platform Beyond Vehicles’, or ‘Purpose Built Vehicles’ (PBVs) – are designed to be highly customisable for use by rideshare drivers, delivery couriers, and a range of other businesses. The mid-size PV5 will be the first to go into production – due in 2025 – followed by the large PV7, and pint-sized PV1. All of the vehicles are based on a modular chassis with a ‘fixed cab’ driver section, and bodywork which can be customised, fitted or removed depending on the customer’s needs – for example, use as a taxi, delivery vehicle, or a campervan. It is unclear for now if any will come to Australia, and how they w...
Read more