BOSTON — Subprime auto lender Santander Consumer USA will pay $5.56 million to resolve allegations that it did not provide sufficient disclosures to consumers as it pertains to the company’s auto loan debt-collection practices, according to the state Attorney General’s Office.
The assurance of discontinuance, filed Feb. 18 in Suffolk Superior Court, alleges that Santander failed to give certain consumers sufficient information about the calculation methods for any deficiencies left on their auto loans after their cars were repossessed. This type of information can be helpful to consumers determining how to best respond to a lender’s collection efforts.
Over 1,000 borrowers across the state are expected to be eligible for relief under the filed assurance of discontinuance.
Borrowers eligible for relief under this settlement will be contacted by the Attorney General’s Office. Anyone with questions about settlement eligibility should contact the attorney general’s Insurance and Financial Services Division at 617-963-2240.