Santander will pay $22 million in a legal settlement announced Wednesday in connection with its role in funding unfair, unaffordable auto loans to more than 2,000 Massachusetts residents.
The settlement includes $16 million in relief to the 2,000 consumers affected by subprime auto loans that Attorney General Maura Healey's office says were issued by Santander Consumer USA Holdings "without having a reasonable basis to believe that the borrowers could afford them."
The settlement filed in Suffolk Superior Court includes a $6 million payment to Massachusetts, according to Healey's office, which handled its investigation jointly with the Delaware Attorney General's office.
Santander is the largest packager of subprime auto loan securities in the U.S., said Healey's office, which described its review of securitization practices in the subprime auto market as ongoing.
Consumers with questions about settlement eligibility should contact the AG's hotline at 1-888-830-6277. – Michael P. Norton/State House News Service