Santander Consumer USA entered into a written agreement with the Federal Reserve Bank of Boston on March 21, and agreed to pay $25.9 million to resolve an investigation in two states regarding the financing and securitization of subprime auto loans, the company revealed in a Securities and Exchange Commission filing today.

Investigations were being conducted by attorneys general in Massachusetts and Delaware regarding allegations that Santander facilitated unfair, high-rate auto loans for thousands of car buyers; funded loans without a reasonable basis to believe borrowers could afford them; and originated loans from certain dealerships it knew had high default rates due to inaccurate.

Skip to toolbar