Hello I went to a Toyota dealer to purachase Highlander Hybrid 2006
model. After negotiating the price with sales rep, then he introduced
me the financial rep for loan. I filled the application or information
that he wants to check the credit history. He said I don't have any
credit history and given wrong age information also. For sometime I
was shocked and afraid of my identity theft. Then I went home and I
requested my credit history from coupld of cedit bureaus everything
looks fine and I don't have any problem.
My question, is there anything we can do to this financial rep at the
Toyota dealer that I can do for giving wrong information and putting
me in uneven situation(afraid, totally lost, fear) and forcing me to
take higher APR.

There are atleast 2 ways it was an honest mistake:

1) The dealer put in wrong information into the computer when checking
your history (or you accidentally gave the dealer wrong information to
input)
2) The credit reporting agency that the dealer uses doesn't have any
data on you (there are 3 major credit reporting agencies and they
often have varying data on individuals)

You should definately return to the dealer and ask them to renegotiate
your loan.  If they see that they made a mistake then they should be
open to doing this.  You should take the credit report with you so you
can prove that you do in fact have a credit history.

I don't know anything about taking legal actions against the dealer,
but hopefully legal actions can be avoided if you politely return to
them and state your case.

I took the print out of the credit report he gave (Equifax) and
showing the information he got. I gave the coorect information. It is
not the question of getting the loan or negotiating the loan, my
question how scary thise dealers are ? they are manipulating the
information and putting us in creepy situation?

I agree that is a creepy situation.  And not something I would want to
have to deal with.  But my point was that there may have been an
honest mistake that caused this.  Although the dealer may be to blame,
you shouldn't assume they are trying to rob you of extra interest... 
but you should be wary of it.  And honestly it would have given me
cause to not buy the car from them.  But it sounds like you chose to
buy the car anyways, so now I was giving you suggestings on what to do
from here (without assuming that the dealer tried to rob you).