SCUSA finalizes settlement with Connecticut banking regulator over repos

HARTFORD, Conn. - 

Santander Consumer USA cleared another legal matter regarding its repossession processes.

Connecticut Banking Commissioner Jorge Perez recently announced a settlement with SCUSA, for alleged violations of Connecticut banking law pertaining to its activity concerning repossessed vehicles. In addition to providing $2.9 million in relief to affected consumers, Santander Consumer USA 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 alleged SCUSA failed to calculate accurately the balance owed on repossessed vehicles for some Connecticut consumers.

In addition, the department alleged that SCUSA 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 alleged that Santander improperly charged convenience fees on payments made by credit or debit cards from Oct. 1, 2016 through Jan. 19 of last year.

“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,” Perez 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.

Complete settlement details can be viewed here.

Back in 2015, SCUSA reached a settlement with the Department of Justice for nearly $10 million to resolve an issue with repossessions and servicemembers.

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