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Toyota Motor Credit Corporation GAP Protection Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Toyota Motor Credit Corporation (TMCC) is putting up $59 million to settle a class action alleging that it did not properly refund unearned Guaranteed Asset Protection (GAP) fees when customers paid off their finance agreements early.

GAP protection can be added on to auto finance agreements so that if the vehicle is totaled or stolen, the lender will waive certain amounts owed for the vehicle. Customers who pay off the financing early, they may be entitled to a partial refund of the GAP fees. The complaint alleged that several states require that the GAP refunds be issued automatically after early payoffs, whether or not customers specifically request them.

Docket Number:

2:20-cv-10518-JVS-MRW

Company: Toyota Motor Credit Corporation

Filing Deadline: September 26, 2022

Class Period: January 1, 2016 to October 25, 2021

Objection Deadline: September 26, 2022

Exclusion Deadline: September 26, 2022

Final Approval Hearing: October 31, 2022

Proof of Purchase:

If you are a member of the Statutory Class, you do not need to submit a claim form. If you are a member of the Non-Statutory Class, you must submit a claim form. If you submit a claim form, you are required to enter the class member ID number from the postcard or email notice you received about the settlement.

Eligibility:

You may be eligible if you belong to one of the two classes below:

- The Statutory Class is all persons in the US (1) who entered into finance agreements with GAP protection in Alabama, Colorado, Indiana, Iowa, Massachusetts, New Jersey, Oklahoma, Oregon, Texas, Vermont, Wisconsin, or Wyoming, (2) whose agreements were assigned to TMCC, (3) who paid off their finance agreements at least thirty days before the original maturity dates, (4) whose early payoffs occurred during the statutory class periods, and (5) who did not receive a GAP refund or suffer a total loss of their vehicle during the term of the finance agreements.

- The Non-Statutory Class is all persons in the US who are not in the Statutory Class (1) who entered into finance agreements with GAP protection, (2) whose agreements were assigned to TMCC, (3) who paid off their finance agreements at least thirty days before the original maturity dates, (4) whose early payoffs occurred between January 1, 2016 and October 25, 2021, and (5) who did not receive a GAP refund or suffer a total loss of their vehicle during the term of the finance agreements.

Typical Settlement Amount:

Benefits: (1) Statutory Class: The full amount of the GAP refund, without deduction for cancellation fees, plus any interest at their state’s applicable prejudgment interest rate, accruing form the date of the early payoff to the date the refund is issued by TMCC. (2) Non-Statutory Class: Up to the full amount of the GAP refund, without deduction for cancellation fees. If the amounts of the GAP refunds comes to more than the amount remaining in the net settlement fund, Non-Statutory Class members’ payments will be reduced by a specific percentage.

Total Settlement Amount: $59 million

Class Representative Proposed Incentive Fee:

$2,500

Law Firms:
Frank Sims Stolper LLP
Franklin D Azar and Associates PC

Claim Form: TMCC GAP Settlement Claim Form

Case Name: Martin, et al. v. Toyota Motor Credit Corporation

Settlement Website: TMCC GAP Settlement Website

Claims Administrator:
Atticus Administration

Claims Administrator Contact Information:

Martin v. TMCC
c/o Atticus Administration
PO Box 64053
St. Paul, MN 55164
1-888-321-1272
TMCCGapSettlement@atticusadmin.com

Tags: Failure To Pay For Refund, GAP Coverage, Loan-Related Unfair Practices