Santander Consumer Subprime Car Loans Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Do you qualify for a piece of a massive $550 million-plus settlement about car loans from Santander Consumer USA, Inc.?

Thirty-four attorneys general brought suit against Santander alleging that Santander exposed consumers to unnecessarily high levels of risk with consumer car loans. They claimed that Santander gave customers loans in circumstances that indicated a large chance of default. Santander was the largest subprime auto financing company in the country, and the attorneys general began the investigation after receiving an increased number of consumer complaints about the loans.

The group of attorneys general claimed that Santander used sophisticated credit scoring models to predict customers’ risks of default and knew that some of those it made loans to had a high risk of not being able to pay their loans. Some of the risks, they said, came from high loan-to-value ratios, significant backend fees, and high payment-to-income ratios, and in some instances from the behavior of the car dealers, such as falsification of information about customer incomes and expenses. The group claims that Santander used deceptive loan servicing practices and misled customers about their rights, the risks of partial payments, and loan extensions.

The settlement covers only residents of certain states and is very complex. Final details have not yet been worked out. Notices will be sent out later. Not all Santander customers will qualify.

Contact us if you had a car loan with Santander Consumer USA and defaulted, whether you still have the vehicle or not. If you have a loan with Santander now, please continue to pay on it in the meantime.

Docket Number:

Filing Deadline: January 1, 2100

Proof of Purchase: Eligibility:

You may be eligible if you got a loan from Santander between January 1, 2010 and December 31, 2019, and if Santander gave you a certain internal score at the time. You will NOT know your own internal score.

You must also have been living in one of the following states when you got your car loan: Arizona, Arkansas, California, Connecticut, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, and Wyoming.

Additional requirements may apply for the various different remedies. Not all Santander car loan customers will qualify for this settlement.

Typical Settlement Amount:

Remedies vary. Certain consumers with the lowest-quality loans who defaulted as of December 31, 2019 and who have not had their cars repossessed will be allowed to keep their vehicles and have the rest of the loan waived. Others will receive some amount of loan forgiveness. Still others whose cars were sold but who still have to pay a balance left over from the loan will have these deficiency balances waived.

Final amounts are not yet known, but the settlement website estimates that they will be at least $224.80 per customer.

Total Settlement Amount: $550 million

Class Representative Proposed Incentive Fee:

Case Name:

Settlement Website: Santander Consumer Subprime Car Loans Settlement Website

Claims Administrator:
Rust Consulting, Inc.

Claims Administrator Contact Information: Tags: Loan-Related Unfair Practices