Santander Consumer USA, a Dallas-based auto financing arm of banking giant Santander, has reached a settlement with Connecticut Banking Department for alleged violations involving the repossession of motor vehicles.
Under the terms of the settlement, the subprime auto lender has credited, refunded or waived $2.9m in principal, interest and other fees and assessments to over 3,730 consumers in Connecticut.
Additionally, Santander Consumer also paid a $100,000 fine and has agreed to comply with all sales finance laws in Connecticut.
During an investigation in 2016, the Department of Banking found that Santander failed to calculate accurately the balance owed on repossessed motor vehicles for some Connecticut consumers.
The Department also accused the company for failing to comply when providing all required documentation after repossessing buyers’ cars, and improperly charging convenience fees on payments made by credit or debit cards from 1 October 2016 and 19 January 2017.
Connecticut Banking Commissioner Jorge Pérez said: “I am happy thousands of Connecticut consumers have seen relief as a result of our department’s continued efforts to protect residents and ensure companies are following the law.
“It is critical that we maintain our vigilance with a watchful eye so we can minimize risks to our consumers.”