Warning about Lexus Financial
12-10-08, 06:52 PM
#16
Lead Lap
Join Date: Oct 2008
Location: Texas
Posts: 667
Likes: 0
Received 0 Likes
on
0 Posts
The reason for the warning is that Lexus Financial reports you faster than any other creditor that we deal with. No other creditor did this. It appears they reported us to Equifax after thirty days and to Experian after 60 days when we had told them payment had been authorized in our online bank account. Do they have a right to do this. Sure we entered into a contract. Did any other creditor do this, no.
I was motivated to write because Toyota's reporting us late really upset my wife. I usually pay off my credit cards every month. We've never been late on a mortgage payment.
Anyway just be careful when dealing with Toyota Credit. My experience is that they will report you to credit bureaus when other creditors will cut you some slack. They also don't appear to accept ACH's so if you do online banking it may take 10 days before they credit your account.
I paid a premium to buy the RX-400 the first month it came out. Among my father and brothers we own 5 Lexuses, but all in all a shoddy experience with a company that makes a good car.
I was motivated to write because Toyota's reporting us late really upset my wife. I usually pay off my credit cards every month. We've never been late on a mortgage payment.
Anyway just be careful when dealing with Toyota Credit. My experience is that they will report you to credit bureaus when other creditors will cut you some slack. They also don't appear to accept ACH's so if you do online banking it may take 10 days before they credit your account.
I paid a premium to buy the RX-400 the first month it came out. Among my father and brothers we own 5 Lexuses, but all in all a shoddy experience with a company that makes a good car.
What did you expect if you were over 60 days late? I thought you were talking about being 4 or 5 days late. Of course they will report you if you are over 60 days late.
Promises to pay don't equal cash in the bank. Other lenders have a right to know about credit risks.
Any car credit institution will report you being over 30 or 60 days late. They give you a 5-10 day grace period, which is more than what they have to do.
12-10-08, 07:00 PM
#17
Guest
Posts: n/a
First sorry about your loss. Second this is not a Lexus Financial issue. They already went out of their way to contact you to say "hey, are you okay, we didn't get a payment". Clearly they called after 30 days.
Its rare for a company to call you before the 30 days to make a payment. They assume you WILL make the payment, otherwise they would not have extended the credit.
All companies report late after 30 days. Its usually a MISTAKE if they don't report you late after 30 days.
My advice, call Lexus Financial (u can also email them on the website, I've done it, they respond pretty quickly) and write a letter explaining the situation. If your record is as good as you stated, ask for a "goodwill" adjustment to take off the late payment off your record.
If not, simply write a letter to the credit bureaus stating "this is incorrect". Lexus has 30 days to respond.
Its rare for a company to call you before the 30 days to make a payment. They assume you WILL make the payment, otherwise they would not have extended the credit.
All companies report late after 30 days. Its usually a MISTAKE if they don't report you late after 30 days.
My advice, call Lexus Financial (u can also email them on the website, I've done it, they respond pretty quickly) and write a letter explaining the situation. If your record is as good as you stated, ask for a "goodwill" adjustment to take off the late payment off your record.
If not, simply write a letter to the credit bureaus stating "this is incorrect". Lexus has 30 days to respond.
12-10-08, 07:10 PM
#18
Lexus Fanatic
Join Date: Jul 2001
Location: California
Posts: 6,084
Likes: 0
Received 0 Likes
on
0 Posts
I echo most everyone else's comments. But I wouldn't just vent here. You are allowed to put a letter in your credit report giving your side of the story. It may not do any good but maybe it will.
The next thing is for everyone to wake up and realize that credit is not anything you have a right to or that anyone owes you any slack. All the lenders are shaking in their boots wondering how many loans they have made that are going to go bad. Do not give them a chance to either explode your interest rates on CCs by being late, knock your credit rating down, or flat call the loan. If it is that upsetting, pay cash for your vehicle. If you can't pay cash and feel that going in debt is worth it, this is a time to go well beyond just paying on time.
Wish it were easier to post but it isn't much of any negative on Toyota or Lexus Financing. 100% down and no payments for the rest of your life avoids these issues, especially at times of stress which many, many of us have or will go through. Getting to the point of not needing credit is a great feeling rather than feeling someone has done you wrong.
The next thing is for everyone to wake up and realize that credit is not anything you have a right to or that anyone owes you any slack. All the lenders are shaking in their boots wondering how many loans they have made that are going to go bad. Do not give them a chance to either explode your interest rates on CCs by being late, knock your credit rating down, or flat call the loan. If it is that upsetting, pay cash for your vehicle. If you can't pay cash and feel that going in debt is worth it, this is a time to go well beyond just paying on time.
Wish it were easier to post but it isn't much of any negative on Toyota or Lexus Financing. 100% down and no payments for the rest of your life avoids these issues, especially at times of stress which many, many of us have or will go through. Getting to the point of not needing credit is a great feeling rather than feeling someone has done you wrong.
12-10-08, 07:36 PM
#19
Lexus Champion
I echo most everyone else's comments. But I wouldn't just vent here. You are allowed to put a letter in your credit report giving your side of the story. It may not do any good but maybe it will.
The next thing is for everyone to wake up and realize that credit is not anything you have a right to or that anyone owes you any slack. All the lenders are shaking in their boots wondering how many loans they have made that are going to go bad. Do not give them a chance to either explode your interest rates on CCs by being late, knock your credit rating down, or flat call the loan. If it is that upsetting, pay cash for your vehicle. If you can't pay cash and feel that going in debt is worth it, this is a time to go well beyond just paying on time.
Wish it were easier to post but it isn't much of any negative on Toyota or Lexus Financing. 100% down and no payments for the rest of your life avoids these issues, especially at times of stress which many, many of us have or will go through. Getting to the point of not needing credit is a great feeling rather than feeling someone has done you wrong.
The next thing is for everyone to wake up and realize that credit is not anything you have a right to or that anyone owes you any slack. All the lenders are shaking in their boots wondering how many loans they have made that are going to go bad. Do not give them a chance to either explode your interest rates on CCs by being late, knock your credit rating down, or flat call the loan. If it is that upsetting, pay cash for your vehicle. If you can't pay cash and feel that going in debt is worth it, this is a time to go well beyond just paying on time.
Wish it were easier to post but it isn't much of any negative on Toyota or Lexus Financing. 100% down and no payments for the rest of your life avoids these issues, especially at times of stress which many, many of us have or will go through. Getting to the point of not needing credit is a great feeling rather than feeling someone has done you wrong.
I don't want to sound like an insensitive a@@, but Ron is right. Part of the reason that Toyota is able to remain profitable is because they know how to operate their financial division.
Life happens, and unfortunately, circumstances dealt you a bad hand. This shouldn't have any sort of devestating effect on your credit, and besides you have more important things to deal with right now. Focus on trying to re-group and recharge over the holidays.
Good luck!
12-10-08, 08:54 PM
#20
Lexus Fanatic
man I am really sorry to hear about the losses in your family. I am sorry they did that to you as well. Dont worry . as long as your general credit history is clean and there is nothinf else indicating other late payments to show a trend you should be ok
12-11-08, 07:29 AM
#21
Driver School Candidate
Thread Starter
Join Date: Dec 2008
Location: CT
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
TMCC has been stricter than the other vendors
I think most people are missing my point. We were over thirty days late because of all the deaths on 8-10 other vendors/credit cards. None of these other vendors took the action that Toyota Motors Credit did in reporting us late. We had 3+ years of on-time payments with all of these vendors. The point is my experience was that TMCC is stricter than other creditors in reporting you late in the 30 day category.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
12-11-08, 07:59 AM
#22
they can reverse this just so you know. any financial company can and I am surprised they wont work with you. I had a similar situation in the past but everyone worked with me and this was before I had things set up for EFT. Family comes first in this household and I have never missed a payment or been late in my life. I had a few fight me on it and I just said I would refinance it with someone else and that woke them up!!!
12-11-08, 09:54 AM
#23
Lead Lap
Any financial institution that has extended credit with an automobile as security is going to report 30 day lates and 60 day lates. Having been employed in the financial industry, I'll tell you that your credit card companies will more than likely get around to reporting 30 day lates and they'll definitely report 60 day lates. Some credit card companies and financial institutions are slower to report delinquencies. When I was a credit analyst, if I saw a recent 30 day late, I would call other creditors on the report to get the status of the account the borrower had with them. In many cases, other creditors would tell me an account was 30 days delinquent, but there would be no indication of that on the credit report. If you had borrowed the money from your bank and got 60 days in arrears, they would report that to the credit bureaus.
12-11-08, 10:04 AM
#24
Lead Lap
Join Date: Oct 2008
Location: Texas
Posts: 667
Likes: 0
Received 0 Likes
on
0 Posts
I think most people are missing my point. We were over thirty days late because of all the deaths on 8-10 other vendors/credit cards. None of these other vendors took the action that Toyota Motors Credit did in reporting us late. We had 3+ years of on-time payments with all of these vendors. The point is my experience was that TMCC is stricter than other creditors in reporting you late in the 30 day category.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
Credit cards and auto finance are run completely differently. Any auto finance company would report you after 30 days and especially after 60 days. Every single one of them would.
12-11-08, 12:37 PM
#25
Lexus Fanatic
Join Date: Jul 2001
Location: California
Posts: 6,084
Likes: 0
Received 0 Likes
on
0 Posts
I think most people are missing my point. We were over thirty days late because of all the deaths on 8-10 other vendors/credit cards. None of these other vendors took the action that Toyota Motors Credit did in reporting us late. We had 3+ years of on-time payments with all of these vendors. The point is my experience was that TMCC is stricter than other creditors in reporting you late in the 30 day category.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
Last year I had my second back surgery that resulted in a handful of titanium rods and screws and a few other unpleasant things becoming part of my span. Ten days afterwards while I was staring at the ceiling, my mother passed away. It's sad. And many people will make allowances. But no one has to and I made sure to honor my obligations. It's the way Mom raised me after all.
12-11-08, 09:23 PM
#26
Guest
Posts: n/a
I think most people are missing my point. We were over thirty days late because of all the deaths on 8-10 other vendors/credit cards. None of these other vendors took the action that Toyota Motors Credit did in reporting us late. We had 3+ years of on-time payments with all of these vendors. The point is my experience was that TMCC is stricter than other creditors in reporting you late in the 30 day category.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
They also don't seem to accept overnight ACHs like most large companies do so if you pay online you are more likely to be late with TMCC than other companies, such as AmEx that do accept ACHs.
BTW: The other four cars we bought in the last 10 years we did pay cash for. I just had a good stock investment opportunity 2005 and used the money for that. In retrospect I should have paid off the loan with proceeds from the stock sale in 2007.
Again, we are very sorry for your loss.
12-11-08, 11:02 PM
#27
Lexus Champion
As others have said, I don't think Toyota can be faulted. I always put recurring payments (car, house, insurance) on auto pay from the checking account. That way as long as money is flowing into the checking account the bills will be paid. It's convenient and in over 30 years of having auto deducts in place I've never had one go bad. Some people don't like to authorize an institution to automatically draw from your account, but if it is a reputable company the downside is nil.
Suggest you check out myfico.com, there are forums there that will show you how to contest these sorts of dings on your credit report, or getting them removed through a Good Will letter.
Suggest you check out myfico.com, there are forums there that will show you how to contest these sorts of dings on your credit report, or getting them removed through a Good Will letter.
05-11-13, 12:14 PM
#28
Driver School Candidate
Join Date: May 2013
Location: California
Posts: 21
Likes: 0
Received 0 Likes
on
0 Posts
Not Fair
Welcome to CL!
This is certainly unfortunate. I am sorry for your loss.
However, I don't see this as a problem with Lexus Financial. Should they be more understanding? Yes. Are they required to give you leniency under the terms of the contract you signed? No.
My dad died in October, my mom has had serious health problems, and my businesses have suffered massive losses in the bad economy. 2008 has been the worst year of my life. I never missed a payment. These credit companies are just too strict and can ruin your credit life with a stroke of a keyboard. Life circumstances have no place in the harsh, cruel world of finance. It is incumbent on you to protect yourself from them and not blame them when they follow their normal procedures.
I'd try to fight it, however. Write letters. Make calls. Good luck.
This is certainly unfortunate. I am sorry for your loss.
However, I don't see this as a problem with Lexus Financial. Should they be more understanding? Yes. Are they required to give you leniency under the terms of the contract you signed? No.
My dad died in October, my mom has had serious health problems, and my businesses have suffered massive losses in the bad economy. 2008 has been the worst year of my life. I never missed a payment. These credit companies are just too strict and can ruin your credit life with a stroke of a keyboard. Life circumstances have no place in the harsh, cruel world of finance. It is incumbent on you to protect yourself from them and not blame them when they follow their normal procedures.
I'd try to fight it, however. Write letters. Make calls. Good luck.
05-11-13, 12:34 PM
#29
With all that said I don't think it is fair for any company to be that harsh or strict to ruin a hard protected credit with a stroke of a keyboard. I could understand habitual late payers being penalized for something like that and I could understand if the person didn't contact them of the loss and the problems they're facing but to just report for reporting sake is insane. - Good luck pal.
That thread is 4.5 years old.
Last Activity from the OP: 12-11-08 10:29 AM
Last edited by Joeb427; 05-11-13 at 12:50 PM.
05-11-13, 06:30 PM
#30
Lexus Fanatic
With all that said I don't think it is fair for any company to be that harsh or strict to ruin a hard protected credit with a stroke of a keyboard. I could understand habitual late payers being penalized for something like that and I could understand if the person didn't contact them of the loss and the problems they're facing but to just report for reporting sake is insane. - Good luck pal.
I suppose I'll comment...since the topic is sure to come back to a discussion now.
This is the bottom line, companies like TFS do not sit down and make individual decisions about what to report and what not to report and n what situation. They don't have the time or manpower to do that, and they can't do that for fear of being accused of using unfair practices with their consumers. They have a policy, and they abide by that policy for EVERY consumer.
The late payment was submitted to the credit bureaus automatically by their financial system when the account went 30 days late, and again at 60.
Thats the whole point of credit bureaus, if creditors did not report the status of the consumer's debts, whether that status is good or bad, then what is the value of a credit report?
Its all about personal responsibility, if you are late you are late and you have to accept the consequences whatever they may be. You have to remember, your bill comes due and then they give you like 20 days until the due date. The bill is due upon receipt...then they give you more grace period after that before they charge a fee. Then it has to be 30 days past the due date for them to report, which is 50 days after you received the bill.
So...quite honestly the system is set up for you to succeed.
Thread
Thread Starter
Forum
Replies
Last Post
Lust4Lexus
Car Chat
6
07-16-11 01:51 AM
