Skip to content
Subscriber Only

Santander Unit to Pay $25 Million Over Subprime Auto Loans

  • Spanish bank is the biggest securitizer of such loans in U.S.
  • Santander paid $5.5 million to the state in 2015 related probe
Updated on

A Banco Santander SA unit will pay almost $25 million to two U.S. states to resolve a joint investigation into predatory subprime auto loans that resulted in buyers owing thousands of dollars more than their cars were worth -- the first such accord in the country.

Santander Consumer USA Holdings Inc., which is also the the biggest packager of subprime auto loan securities in the country, will pay $22 million to Massachusetts and $2.87 million to Delaware, state officials said. The accord could be used as a template by other states investigating the same alleged wrongdoing across the country, they said.