Santander Consumer Credit USA Finally Has to Pay for Consumer Fraud!
- Author: Jacob Greene
- Posted: 2022-12-09
Santander Consumer USA, Inc. agreed to pay $550 million to customers in 34 states, including Connecticut, California, Florida, Maryland, New Jersey, New York, Pennsylvania, and Tennessee to compensate them for deceptive consumer credit contracts nationwide. Wells Fargo reimbursed service members called to active duty $10,000 each for illegally repossessing their vehicles. CitiFinancial Credit was also required to pay service members for repossessing their cars and trucks.
Santander made high-cost loans to buyers who were otherwise not qualified for credit knowing that the loans "were doomed" to default. Their predatory lending procedures allowed them to collect maximum possible amounts from the borrower and repossess the late-model car for the maximum possible value at auction. Santander preyed on families hardest hit by economic downturns according to California's Attorney General Xavier Becerra. Santander set aside $25.9 million for borrowers in Massachusetts and Delaware.
Santander Consumer Credit USA Repossessed Vehicles
Santander Consumer USA owes $65 million to consumers in 34 states who were unable to satisfy their multistate international lender between January 1, 2010 and December 31, 2019 and lost their vehicles through repossession. Santander violated consumer protection laws when they repossessed 9,000 Maryland cars and owes the unfortunate owners $2.2 million in damages.
Santander Consumer Credit USA May Not Repossess
Santander Consumer USA, Inc. is required to let owners who they have charged late fees, claimed to have worked with, and finally declared to have not kept their promises to Santander, keep their vehicles. Santander owes $433 million to these consumers who are in default and is required to dismiss the balance of their loans. The debtors are entitled to clear title to their vehicles. Furthermore, Santander Consumer USA must pay $2 million to the administrator of the settlement.
United States Department of Justice 2015
By February 2015, the Civil Rights Division of the United States Department of Justice forced Santander Consumer USA, Inc. to create a $9.35 million settlement fund to compensate 1,112 service members on active duty in the military for their losses due to Santander's illegal repossession of their motor vehicles. President Obama created the Civil Rights Division of the Financial Fraud Enforcement Task Force that works with federal agencies, regulatory authorities, attorney generals, and state and local law enforcement to investigate and prosecute financial crimes and reduce discriminatory policies in lending.
CitiFinancial Credit Company
On September 18, 2017, the U.S. Department of Justice released that CitiFinancial Credit was required to pay $907,000 to 164 service members whose vehicles were illegally repossessed. CitiFinancial Credit knew their consumers were overseas on active duty in the military when they took the cars. CitiFinancial Auto Corporation sold the unsecured balances to Santander Consumer USA that tried to collect the deficits remaining after the repossessions.
Manhattan Supreme Court
Attorney General Letitia James secured $2.77 million for New Yorkers whose cars were repossessed and $45 million for New Yorkers who have not yet had their vehicles repossessed. Those who still own their cars will be given their titles and their loan balances will be forgiven. Santander confused consumers when they accepted partial payments or added payments on the end of loans. Santander never told the consumers that despite their payments their cars would be repossessed. Santander Consumer USA will also repair consumer credit reports damaged by their illegal practices.
Rust Consulting, Inc. Adminsters the Settlement
Rust Consulting, Inc. is administering the $550 million Santander Consumer Credit USA consumer fraud settlement. If you did not receive a post card that your vehicle is included in the settlement, Rust Consulting refers you to Santander Consumer Credit at 1-888-222-4227. Santander will give you a post card stating that your vehicle is included in the class action settlement.
Complaints Against Santander Consumer Credit USA
If you are unable to resolve your complaint through Rust Consulting or Santander Consumer Credit USA, FairShake can help you take legal action against Santander to get restitution. FairShake can help you through consumer arbitration or small claims court. You can seek monetary restitution. State law sets upper and lower limits for the amount of money you can receive. For example: You may be entitled to a maximum of $5,000 or $10,000. You may also be able to ask for equitable relief, such as, correction of your credit report. Before you litigate, send a demand letter to:
Santander Consumer USA, Inc.
C T Corporation System
208 SO Lasalle ST, Suite 814
Chicago, IL 60604