Santander Bank Enters Into $550 Million Agreement With State Attorneys General; Accusations Of Disadvantageous Car Loans Quashed
Santander has reportedly reached a settlement agreement with plaintiffs that have sued the company in a class action lawsuit for allegedly handing out potentially predatory car loans and charges to subprime loan seekers and low-income borrowers.
State Attorneys General v. Santander Bank Car Loans Settlement
According to reports, Santander Bank will pay an amount of $550 million to finally resolve the accusations thrown against them. The bank was accused by a class action lawsuit of violating different consumer protection statutes after instituting unfair car loans to low-income borrowers.
The Santander Bank car loans allegedly carried a high probability of its loanee going into default. Different state attorneys general have filed suit against Santander due to the company’s means of approving high-cost and highly-disadvantageous auto loans to car seekers in several states.
Santander Bank Car Loans Settlement’s Beneficiaries
Online reports suggested that the total amount Santander will pay as part of the agreement would be divided into two parts – one would go directly distributed to eligible consumers while the rest would be allocated to loan forgiveness programs for Santander loan holders whose cars were repossessed.
Some Santander loan holders will be allowed to keep their cars, and their remaining balance will be waived by the company depending on the given circumstances.
Moving forward, the bank is not allowed to provide usurious loans to low-income families and individuals. It was forced to enforce changes in its loan policies.
As of press time, some Santander customers will be able to receive payment checks from the settlement after the settlement agreement administrator has started the distribution process. According to reports, the payment checks may take almost two weeks to reflect on a customer’s bank statement.
For more details about the class action settlement, you can visit the official settlement site.
Formerly known as Sovereign Bank, Santander Bank is a Spanish-owned subsidiary of the Santander Group. Founded more than a hundred years ago, the bank is currently headquartered in Boston, Massachusetts. As of 2020, Santander Bank employs an estimated ten thousand employees under its management.
Editor’s Note on Santander Bank Car Loan Settlement 2021:
This article features the latest developments in the settlement agreement between Santander Bank and different state attorneys general in relation to the accusations that the bank’s car loans were preying on lower-income persons.
Case Name(s) & No.(s): Santander Car Loans Class Action Settlement Agreement
Products/Services Involved: Santander Bank Car Loans
Allegation(s): Santander Bank car loans were predatory and were designed to fail in protecting low-income loan seekers’ financial rights.
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