Santander Consumer, one of the largest subprime auto lenders in the US, will pay $11.8m to settle claims that it misled customers over the costs and terms of auto loans and insurance. Watchdog the Consumer Financial Protection Bureau said the company, an affiliate of Spanish banking group Banco Santander, had promised that drivers would obtain lower monthly fees by making interest-only payments, without explaining that this would make the total loan more expensive. The bank also failed to explain the limitations of the “guaranteed auto protection” insurance policy. Santander Consumer will pay around $9.3m in fines and $2.5m in refunds.
Santander Consumer, one of the largest subprime auto lenders in the US, will pay $11.8m to settle claims that it misled customers over the costs and terms of auto loans and insurance. Watchdog the Consumer Financial Protection Bureau said the company, an affiliate of Spanish banking group Banco Santander, had promised that drivers would obtain lower monthly fees by making interest-only payments, without explaining that this would make the total loan more expensive. The bank also failed to explain the limitations of the “guaranteed auto protection” insurance policy. Santander Consumer will pay $2.5m in fines and around $9.3m in refunds.