- The CFPB reached a settlement with subprime auto loan company Santander Consumer USA Inc. (“Santander”) to resolve allegations that it provided erroneous consumer loan information to consumer reporting agencies (“CRAs”) in violation of the Fair Credit Reporting Act, and its implementing regulation, Regulation V.
- According to the consent order, the CFPB found that Santander sent information it knew or reasonably should have known to be inaccurate to CRAs, including providing inaccurate information about whether accounts were open or closed, and whether accounts were delinquent. The CFPB also found that Santander failed to promptly correct inaccurate consumer credit information and that it did not have proper policies and procedures in place to prevent inaccurate information being sent to CRAs.
- Under the terms of the consent order, Santander will pay a $4.75 million civil money penalty, as well as correct all errors that the CFPB identified in its investigation. In addition, Santander must implement policies and procedures to ensure the accuracy of the consumer information sent to CRAs, including conducting monthly reviews of account information, among other things.
- As previously reported, Santander entered into a $550 million settlement with a bipartisan group of 38 AGs to resolve allegations that it knowingly exposed subprime borrowers to unnecessary risk by offering them loans with a high probability of default in violation of state consumer protection laws.