BOSTON — A subprime auto lender will pay $5.56 million to resolve allegations that it did not provide sufficient disclosures to consumers as it pertains to the company’s auto loan debt collection practices, Massachusetts Attorney General Maura Healey announced today.
The assurance of discontinuance, filed today in Suffolk Superior Court, alleges Santander Consumer USA (SCUSA) failed to give certain consumers sufficient information about the calculation methods for any deficiencies left on their auto loans after their cars were repossessed. This type of information can be helpful to consumers determining how to best respond to a lender’s collection efforts.
“Consumers struggling with auto loan debt should get clear information from lenders to help them navigate repossession and other collection actions,” said AG Healey. “This settlement, which combines cash payments with debt relief and credit repair, will help many subprime borrowers in need.”
Over 1,000 borrowers across the State are expected to be eligible for relief under the filed Assurance of Discontinuance.
Today’s settlement is part of the AG’s ongoing work to hold subprime auto lenders accountable regarding their collection practices. AG Healey has previously pursued Credit Acceptance Corporation (CAC) for failing to provide similar information to auto borrowers after auto repossession – this claim was part of a much broader suit against CAC relating to unfair lending, collection, and securitization issues. In August 2020, the AG’s Office sued CAC and announced a settlement in September 2021 for over $27 million in cash as well as debt forgiveness and credit repair for affected consumers.
Borrowers eligible for relief under this settlement will be contacted by the AG’s Office. Anyone with questions about settlement eligibility should contact AG Healey’s Insurance and Financial Services Division at 617-963-2240.
This matter was handled by Assistant Attorney General Glenn Kaplan and Mathematician Dr. Burt Feinberg, with assistance from Legal Analyst Leah MacArthur and Managing Administrative Assistant Gia Kim, all of the AG’s Insurance and Financial Services Division.