Home / Business and Economy / Santander Charged Hidden Fees: $400K Fine
Santander Charged Hidden Fees: $400K Fine
13 Jun
Summary
- Santander Consumer USA Inc. paid $400,000 penalty and $275,000 restitution.
- Undisclosed monthly extension fees were charged on auto loans.
- New York borrowers who had auto loans before 2018 may be eligible for refunds.
Santander Consumer USA Inc. has agreed to pay a $400,000 penalty and over $275,000 to affected borrowers for violating New York State Banking Law. An investigation revealed the company had been imposing undisclosed monthly extension fees on automobile loans, contrary to the single $25 fee initially disclosed.
This practice led to New York borrowers paying approximately $237,000 in these concealed charges, with an additional $86,000 assessed but not collected. The New York State Department of Financial Services emphasized holding institutions accountable for essential consumer protections.
The settlement mandates that Santander Consumer provide restitution to eligible borrowers. This restitution will be in the form of checks refunding paid fees with interest or waivers for unpaid fees. Consumers who had an automobile loan with Santander before 2018 may qualify for these refunds.
