Santander to Pay States $550 Million to Settle Allegations of Predatory Auto Lending

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Santander to Pay States $550 Million to Settle Allegations of Predatory Auto Lending
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Santander reached a $550 million deal with more than 30 states to settle charges of predatory auto lending to borrowers with low incomes and subprime credit scores

Santander Consumer USA Inc. has reached a deal with nearly three dozen states to pay $550 million to settle charges of predatory auto lending to borrowers with low incomes and subprime credit scores.

The settlement resolves charges that one of the largest subprime auto lenders in the U.S. made loans borrowers couldn’t afford to repay. The states also claim that Santander failed to monitor dealers that falsified borrowers’ incomes and other information when submitting loan applications.

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