That is correct for this instance, as stated TCCI is not a Schedule BankCanadianLurker wrote: ↑ Requiring the purchase of a warranty in order to obtain credit is called "coercive tied selling" and is illegal under the Bank Act. I don't think that Toyota Credit Canada Inc (or Toyota Financial Services) is an actual Bank so they wouldn't be governed by the Bank Act, however, in the spirit of compliance I would very highly doubt that they would stoop to such an unethical business practice.
Periodically the coercive tied selling does occur, usually by deceit to the real Bank and buyer by the selling dealer if the approving lender is a Bank versus the manufacturers captive.
The finance manager would have to lie and state the warranty, LOE, or L&D insurances were a conditional approval requirement.
If caught, this forced fraudulent selling never affects us the Bank of course but that auto dealer automatically finds itself with one less finance source.