Santander Consumer USA Set to Pay $9.35 Million for Seizures from Active-Duty Troops
Feb 27 15
Santander Consumer USA has reached a $9.35 million settlement with the Justice Department over accusations that the company, an auto lender, illegally seized cars from members of the military. The deal, which still requires the approval of a federal judge, involves the large sum ever collected by the United States for the illegal repossession of cars, and is another setback for the giant auto lender. Under federal law, lenders like Santander Consumer USA must get a court order before repossessing vehicles owned by active-duty service members. The law, called the Service members Civil Relief Act, recognizes that military members have to upend their lives, often at a moment's notice, sometimes leaving their finances in peril. By requiring lenders to first obtain a court order, the law provides service members with a chance to delay or contest repossessions. But Santander Consumer, prosecutors said, failed to get those court orders, leaving service members, including some who were deployed thousands of miles away, to fight at home and abroad. Prosecutors said that the lender's repossessions stretched over roughly five years, from January 2008 until February 2013. Santander Consumer, prosecutors said, completed 760 repossessions against service members protected under the relief act. The case, filed in Federal District Court in Dallas, also accused Santander Consumer of going after an additional 352 service members for fees that stemmed from illegal repossessions started by other lenders. The case traces to a complaint lodged with the Army Legal Assistance Program.
Santander Consumer USA Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014
Feb 3 15
Santander Consumer USA Holdings Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the fourth quarter, the company reported interest on finance receivables and loans of $1,150,242,000 against $1,049,298,000 a year ago. Total finance and other interest income was $1,455,210,000 against $1,144,248,000 a year ago. Net finance and other interest income was $1,073,267,000 against $953,495,000 a year ago. Net finance and other interest income after provision for credit losses was $513,743,000 against $324,333,000 a year ago. Net finance and other interest income after provision for credit losses and profit sharing was $505,591,000 against $280,889,000 a year ago. Income before income taxes was $408,591,000 against $180,931,000 a year ago. Net income attributable to company shareholders was $247,033,000 against $113,926,000 a year ago. Diluted net income per common share was $0.69 against $0.33 a year ago. Return on average assets was 3.1% against 1.8% a year ago. Return on average equity was 29.1% against 17.3% a year ago.
For the nine months, the company reported interest on finance receivables and loans of $4,631,847,000 against $3,773,072,000 a year ago. Total finance and other interest income was $5,569,660,000 against $3,934,021,000 a year ago. Net finance and other interest income was $4,306,221,000 against $3,403,693,000 a year ago. Net finance and other interest income after provision for credit losses was $1,689,278,000 against $1,550,726,000 a year ago. Net finance and other interest income after provision for credit losses and profit sharing was $1,614,353,000 against $1,472,480,000 a year ago. Income before income taxes was $1,209,988,000 against $1,209,988,000 a year ago. Net income attributable to company shareholders was $766,349,000 against $697,491,000 a year ago. Diluted net income per common share was $2.15 against $2.01 a year ago. Return on average assets was 2.6% against 3.1% a year ago. Return on average equity was 24.7% against 27.8% a year ago.
Santander Consumer USA Holdings Inc. Announces Directorate Changes
Jan 30 15
On January 26, 2015, Daniel Zilberman, director, submitted his resignation from the board of directors of Santander Consumer USA Holdings Inc. effective as of January 26, 2015. Mr. Zilberman is affiliated with Warburg Pincus & Co. (Warburg), and Warburg no longer has an equity interest in the company. Mr. Zilberman resigned to create a vacancy on the Board for an independent director. On January 27, 2015, the board appointed Wolfgang Schoellkopf to the board as a director and a member of the audit committee of the board (the Audit Committee). Mr. Schoellkopf's term will expire at the 2015 annual meeting of stockholders, and Mr. Schoellkopf will hold office for the remainder of his term until his successor is elected and qualified. Mr. Schoellkopf currently serves as chairman of the Board Enterprise Risk Committees and a member of the Executive, Compensation, Capital and Audit Committees of SHUSA's and SBNA's boards, and a member of the Bank Secrecy Act/Anti-Money Laundering Oversight Committee and the Oversight Committee of SBNA's board. Mr. Schoellkopf replaces Gonzalo De La Heras on the audit committee, who ceased to serve on the audit committee effective January 19, 2014. Mr. De La Heras will continue to serve on the board as a director.