January 17, 2017 12:07 AM ET

Consumer Finance

Company Overview of Toyota Motor Credit Corporation

Company Overview

Toyota Motor Credit Corporation provides various financial and insurance products to authorized Toyota, Scion, and Lexus vehicle dealers or dealer groups, and other domestic and import franchise dealers and their customers in the United States and Puerto Rico. The company acquires retail installment sales contracts; and leasing contracts accounted for as either operating leases or direct finance leases from dealers. It also provides dealer financing, including wholesale financing, working capital loans, revolving lines of credit, and real estate financing to dealers and various multi-franchise organizations. In addition, the company offers vehicle service agreements, guaranteed auto protecti...

19001 South Western Avenue

Torrance, CA 90501

United States

Founded in 1982

3,140 Employees

Phone:

310-468-1310

Key Executives for Toyota Motor Credit Corporation

Chief Executive Officer, President, Principal Financial Officer and Director
Age: 61
President of Toyota Motor Corporation and Director of Toyota Motor Corporation
Age: 60
Chief Administrative Officer and Senior Vice President
Age: 68
Principal Accounting Officer and Vice President of Accounting & Tax
Age: 58
Executive Vice President, Treasurer and Director
Age: 54
Compensation as of Fiscal Year 2016.

Toyota Motor Credit Corporation Key Developments

Toyota Motor Credit Corporation Announces Executive Changes

On December 2, 2016, Toyota Motor Credit Corporation announced that Chris Ballinger, Senior Vice President and Chief Financial Officer of the company, has resigned, effective January 9, 2017. Mr. Ballinger will be joining Toyota Research Institute as Chief Financial Officer and Head of Mobility Services. Effective upon Mr. Ballinger’s departure, Michael Groff, President and Chief Executive Officer of the company, will act as principal financial officer of the company. Ron Chu, Group Vice President, will continue to be responsible for corporate tax and accounting functions and will act as the company’s principal accounting officer. Mr. Chu will report to Mr. Groff.

Toyota Motor Credit Corporation, Toyota Motor Finance (Netherlands) B.V., Toyota Financial Services (UK) Plc, Toyota Leasing Gmbh, Toyota Leasing Gmbh , Toyota Credit Canada Inc., Toyota Kreditbank Gmbh and Toyota Finance Australia Ltd. Enter into Credit Agreements

Toyota Motor Credit Corporation entered into the credit agreements with $5.0 billion 364-day syndicated credit facility pursuant to a 364 Day Credit Agreement, dated as of November 15, 2016 (the "364 Day Credit Agreement"), among TMCC, Toyota Motor Finance (Netherlands) B.V. ("TMFNL"), Toyota Financial Services (UK) PLC ("TFS(UK)"), Toyota Leasing GMBH ("TLG"), Toyota Credit de Puerto Rico Corp. ("TCPR"), Toyota Credit Canada Inc. ("TCCI"), Toyota Kreditbank GMBH ("TKG"), and Toyota Finance Australia Limited ("TFA"), as Borrowers, the lenders party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp. ("BNPP Securities"), Citigroup Global Markets Inc. ("CGMI"), Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPFS") and The Bank of Tokyo-Mitsubishi UFJ Ltd. ("BTMU"), as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. ("Citibank") and Bank of America, N.A. ("Bank of America"), as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents. $5.0 billion three year syndicated credit facility pursuant to a Three Year Credit Agreement, dated as of November 15, 2016 (the "Three Year Credit Agreement"), among TMCC, TMFNL, TFS(UK), TLG, TCPR, TCCI, TKG and TFA, as Borrowers, the lenders party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America, and BTMU, as Syndication Agents. $5.0 billion five year syndicated credit facility pursuant to a Five Year Credit Agreement, dated as of November 15, 2016 (the "Five Year Credit Agreement" and, collectively with the 364 Day Credit Agreement and the Three Year Credit Agreement, the "Credit Agreements"), among TMCC, TMFNL, TFS(UK), TLG, TCPR, TCCI, TKG and TFA, as Borrowers, the lenders party thereto, and BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNPP Securities, CGMI, MLPFS, and BTMU, as Joint Lead Arrangers and Joint Book Managers, Citibank and Bank of America, as Swing Line Lenders, and Citibank, Bank of America and BTMU, as Syndication Agents.

Toyota Motor Credit Corporation Settles Bias Claims

Toyota Motor Credit Corp. will pay as much as $21.9 million to black and Asian borrowers who paid more for auto loans than whites, settling allegations of discrimination by federal regulators. Toyota Motor Credit Corp. in Torrance had been under investigation by the Department of Justice and the federal Consumer Financial Protection Bureau since 2013. It had been targeted as part of a broad inquiry into auto lending practices that has led to similar settlements with other major auto credit companies. The agencies didn't find that Toyota Motor Credit discriminated directly, but rather that the automaker's dealerships increased interest rates more for black and Asian borrowers than for whites. Lenders such as Toyota Motor Credit offer a base rate for buyers based on their credit-worthiness. Dealerships then are allowed to tack on additional interest -- known as a dealer markup. Regulators didn't take issue with the markups themselves, but rather that dealerships added extra interest to loans for black and Asian borrowers. 'No consumer should be forced to pay more money for a loan because of their race or national origin,' U.S. Atty. Eileen M. Decker of the Central District of California said in a statement announcing the settlement. Investigators found black borrowers paid 0.27% more for loans than whites with similar loans and credit histories. Asian borrowers paid 0.18% more. The extra interest meant black borrowers, on average, paid as much as $200 extra over the course of their loans, while Asians paid $100 extra. It's not clear how many borrowers were affected, but the settlement's size implies more than 100,000 borrowers. In a complaint filed in Los Angeles federal court, the Justice Department said Toyota knew that allowing dealerships to mark up loans created a 'substantial risk of discrimination', but Toyota did not start monitoring markup disparities until 2014 -- the year after federal regulators started their investigation. Toyota Motor Credit has agreed to pay about $20 million in restitution to borrowers who took out loans from January 2011 to February 2, 2016. The company also will set aside $2 million to compensate new borrowers until Toyota puts controls in place to prevent overcharging.

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