DOB: Banking Commissioner Announces $2.9 Million in Relief for Connecticut Consumers in Settlement with Santander

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NEWS RELEASE

Banking Commissioner Announces $2.9 Million in Relief for
Connecticut Consumers in Settlement with Santander
3,730 Connecticut accounts saw credits, refunds or waived fees 

February 20, 2018

Connecticut Banking Commissioner Jorge L. Pérez announced a settlement with Santander Consumer USA, a sales finance company licensed by the Department of Banking, for alleged violations of Connecticut banking law pertaining to its activity concerning repossessed motor vehicles. In addition to providing $2.9 million in relief to affected consumers, Santander has paid a $100,000 fine and has agreed to comply with all sales finance laws in Connecticut.

Following a 2016 investigation, the Department of Banking alleges Santander failed to calculate accurately the balance owed on repossessed motor vehicles for some Connecticut consumers. In addition, the Department alleges that Santander failed to provide written itemized statements to consumers showing how the proceeds of the sale of their repossessed vehicle were disbursed within 30 days, as required by law. Finally, the Department alleges that Santander improperly charged convenience fees on payments made by credit or debit cards from October 1, 2016 through January 19, 2017.

“I am happy thousands of Connecticut consumers have seen relief as a result of our department’s continued efforts to protect residents and ensure companies are following the law,” Commissioner Pérez said.  “It is critical that we maintain our vigilance with a watchful eye so we can minimize risks to our consumers.”

Under the terms of the settlement, Santander has already credited, refunded or waived $2.9 million in principal, interest and other fees and assessments, including convenience fees.

Find the full consent order here.