June 8, 2021

Settlement With Subprime Auto Lender Getting Money To Affected Hoosiers

Original story from   IPBS-RJC

Article origination IPBS-RJC
Settlement With Subprime Auto Lender Getting Money To Affected HoosiersThirty-three states, including Indiana, investigated Santander Consumer USA, the country’s largest subprime auto financing company. - Courtesy of Santander Consumer USA

Settlement With Subprime Auto Lender Getting Money To Affected HoosiersThirty-three states, including Indiana, investigated Santander Consumer USA, the country’s largest subprime auto financing company.

Courtesy of Santander Consumer USA

Thousands of Hoosiers are getting more than $200 each through a settlement between the state and a subprime auto lender.

Attorney General Todd Rokita announced the details of Indiana's part of the settlement Tuesday.

Thirty-three states, including Indiana, investigated Santander Consumer USA, the country’s largest auto financing company for customers with poor credit history. They alleged that Santander knew some of its customers were likely to default on their loans and exposed those borrowers to high levels of risk from fees and debt.

As part of a settlement with the company, more than 5,000 Hoosiers will get checks of $261. Additionally, about 1,500 Hoosiers will get their loans waived or forgiven.

And Santander will be required to consider its customers’ ability to repay loans before lending in the future.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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