Auto Loan Company Forgives Debt, Pays Over 5,000 Eligible Hoosiers | Business
A risky auto loan company that allegedly violated Indiana consumer protection laws has agreed to waive more than $ 14.1 million in auto debt and pay restitution of $ 261 each to more than 5 000 Hoosiers.
Attorney General Todd Rokita on Tuesday announced the impact in Indiana of the multi-state settlement reached last year between 33 states and Santander Consumer USA Inc.
Rokita said checks for $ 261 are expected to arrive in the mailboxes of eligible Hoosiers who have done business with the loan company soon.
“As part of our mission to protect Hoosier consumers, we will continue to hold companies accountable for compliance with the law,” said Rokita. “Hard-working families face enough challenges without having to deal with businesses trying to take advantage of them.”
According to the attorney general’s office, Santander used sophisticated credit scoring models to predict which borrowers were likely to default on its auto loans, and then imposed large loan repayments on those borrowers relative to their income and debts. significant costs.
Santander’s aggressive pursuit of market share has also reportedly prompted it to ignore car dealers who may abuse the system by falsely reporting consumer income and spending. Santander allegedly misled consumers about their rights and the risks of partial payments and loan extensions, the attorney general said.