May 13 (Reuters) - The U.S. Consumer Financial

Protection Bureau has canceled a 2023 settlement with the

financing arm of Toyota ( TM ) over allegations the auto giant

illegally steered thousands of consumers into costly and

unwanted product bundles, according to documents published by

the agency.

The CFPB also specifically waived requirements that Toyota

Motor Credit Corp pay tens of millions of dollars in

refunds and redress to allegedly harmed consumers, according to

an order.

The agency did not immediately respond to a request for

comment, and the order dated Monday did not provide a reason for

the decision.

However, Toyota ( TM ) said it welcomed the CFPB's action and was

committed to "doing the right things" for Toyota ( TM ) buyers.

"We will continue to enhance our practices to deliver the

best possible customer experiences," the company said in a

statement.

In 2023, the CFPB ordered Toyota ( TM ) to pay a $12 million

penalty and $48 million to car buyers who had been harmed since

2016.

According to the CFPB, thousands of borrowers complained

that dealers lied about whether "add-on" products offering

protection for things such as damage, theft or out-of-warranty

coverage were mandatory, or that Toyota ( TM ) rushed the paperwork so

buyers would not realize how much they were paying.

The regulator said Toyota Motor Credit made it "extremely

cumbersome" to cancel the bundles, including by routing more

than 118,000 borrowers to a hotline where agents were instructed

to dissuade cancellations, and often failed to provide refunds.

The 2023 settlement had been due to last five years.