More than 1,000 Massachusetts borrowers are expected to be eligible for relief under the agreement.
BOSTON (AP) — Santander Consumer USA, (SCUSA), a subprime auto lender, has agreed to pay more than $5.5 million to Massachusetts to resolve allegations that it did not provide proper explanations about its auto loan debt collection practices to consumers, the state attorney general’s office said Friday.
The assurance of discontinuance filed in Suffolk Superior Court alleges Santander Consumer USA failed to give certain consumers sufficient information about the calculation methods for any deficiencies left on their auto loans after their cars were repossessed.
The information is important for consumers trying to determine how to best respond to a lender’s collection efforts, the office said.
“Consumers struggling with auto loan debt should get clear information from lenders to help them navigate repossession and other collection actions,” Attorney General Maura Healey said in a statement. “This settlement, which combines cash payments with debt relief and credit repair, will help many subprime borrowers in need.”
More than 1,000 Massachusetts borrowers are expected to be eligible for relief under the agreement.
Santander Consumer cooperated with the investigation without admitting wrongdoing.
This settlement is part of the AG’s ongoing work to hold subprime auto lenders accountable regarding their collection practices. AG Healey has previously pursued Credit Acceptance Corporation (CAC) for failing to provide similar information to auto borrowers after auto repossession – this claim was part of a much broader suit against CAC relating to unfair lending, collection, and securitization issues. In August 2020, the AG’s Office sued CAC and announced a settlement in September 2021 for over $27 million in cash as well as debt forgiveness and credit repair for affected consumers.
This matter was handled by Assistant Attorney General Glenn Kaplan and Mathematician Dr. Burt Feinberg, with assistance from Legal Analyst Leah MacArthur and Managing Administrative Assistant Gia Kim, all of the AG’s Insurance and Financial Services Division.
Source: Massachusetts Attorney General’s Office
Santander agrees to pay $5.5M over post repossession notices – Fair Debt Collection Practices Act – FDCPA – Massachusetts Attorney General’s Office
