Toyota is facing renewed backlash from Mirai owners after a $5.7 billion lawsuit accused the automaker of operating a “criminal operation” to conceal safety concerns tied to its hydrogen-powered sedan. Several owners now claim that despite being told they could pause payments during the legal proceedings, they were still reported to debt collectors.
Attorney Jason Ingber, who represents a number of plaintiffs involved in the lawsuit, says Toyota advised some customers to temporarily stop making monthly payments because ongoing issues with the hydrogen fueling infrastructure have made it difficult for owners to use their vehicles. Many Mirai drivers, he says, are left paying for cars they can barely operate.
What initially appeared to be a conciliatory move has allegedly resulted in serious financial consequences for some owners. Ingber says his clients received written confirmation from Toyota assuring them that payments would not be required while the lawsuit was active. Despite this, several owners report being sent to collections, damaging their credit in the process.
“This was a big relief, and then with the uncertainty of it, now some people have gone back to making payments,” Ingber told KTLA. “Some people threw their arms in the air because they already got negative credit reported. This is a fiasco within the fiasco that’s really cruel, in my opinion.”
One affected owner, Anthony Escobedo, told the outlet that he had built his credit score up to 814. Acting on Toyota’s guidance, he paused payments on his Mirai, only to be sent to collections shortly afterward.
His credit score reportedly fell by 100 points almost immediately, preventing him from qualifying for an interest-free loan he needed to cover medical costs for his wife.
Although Toyota later reversed the missed payment report, Escobedo says his credit score did not fully rebound.
Julie Doumit experienced a similar situation. She told KTLA that she paused payments based on Toyota’s assurances after making 46 straight on-time payments. Despite her payment history, her account was still sent to collections, and her credit score dropped by roughly 70 points.
Another owner, Alejandro King, said his credit score declined by approximately 150 points from a high of 835 after he also paused payments.
“I’ve been building my credit since I was 18 years old. I have never missed a payment. I have paid everything off all the time. My credit score was like 835, which is phenomenal, and I’ve always kept it that way. And for me to see that happen, I was so depressed that I couldn’t sleep,” King said.
In some instances, the issue appears to stem from internal breakdowns at Toyota. It is believed that representatives failed to notice account notes indicating approved payment pauses, resulting in those customers being mistakenly flagged for nonpayment and referred to debt collection agencies.
The RICO lawsuit alleges that Toyota worked alongside its financing divisions and California dealerships to promote and finance the Mirai, despite internal warnings from technicians who allegedly referred to the vehicles as “ticking hydrogen bombs.” The suit also claims Toyota concealed several defects, including the possibility of hydrogen leaks occurring near hot engine components.
Also Read: 10 Hydrogen Cars That Might Change the Industry in 2025
