Toyota finance accounts are becoming increasingly popular as an option for the financial services sector, with many banks and credit unions offering them as part of their existing loan products.
However, unlike other loan products, these account offer no interest-free financing, meaning you have to pay the interest upfront and interest at the end of the loan term.
The Toyota finance account is a good option for people who are new to finance, who are looking for a lower monthly payment than traditional finance products, and who are unable to qualify for other credit products.
However, as of March, Toyota Finance will no longer offer this account as a default option.
This decision comes as part the Japanese automaker is under investigation by the US Securities and Exchange Commission (SEC) regarding a potential manipulation of its Toyota financing platform.
The SEC is also investigating whether the Japanese car maker violated its obligations under the Foreign Corrupt Practices Act (FCPA).
The SEC announced the new investigation on Monday, noting that Toyota had “mischaracterized its Toyota finance products” and “made misleading representations” about its product offerings.
According to the report, the SEC’s investigation began after Toyota “made representations that the Toyota finance product did not require the customer to make payments in full at the time of purchase.”
The SEC’s action comes as a result of a complaint filed last month with the US Justice Department.
“This is a troubling case of a company manipulating its business by making misleading representations about its Toyota products,” said Elizabeth McAllister, acting director of the Consumer Financial Protection Bureau’s Enforcement Division.
“The investigation into Toyota’s Toyota financing products is an important step in ensuring that Toyota and other companies that engage in business with the U.S. government do not operate as if their products are safe and secure.”
While the SEC investigation will not directly result in any criminal charges, the investigation is the result of an ongoing investigation by an independent, independent third party that has access to Toyota’s internal data.
Toyota’s stock price has risen more than 25% since the announcement of the investigation, making it the biggest gainer on the Tokyo stock exchange this year.
The Japanese automanaker is currently under investigation in Japan for alleged fraud and securities violations relating to its Toyota Finance product.
Toyotas Toyota finance platform was designed to help Toyota owners make low-cost, low-interest loans, but the company has said it is in the process of removing the feature from the platform.