CONCORD, N.H. (AP) New Hampshire will receive more than $3 million in a multistate settlement with auto loan financing company Santander over allegations that it knowingly targeted consumers who were likely to default on its loans.
The settlement stems from an investigation by 34 attorneys general of Santander’s subprime lending practices.
The attorneys general allege that Santander, through its use of sophisticated credit scoring models to forecast default risk, knew that certain segments of its population were predicted to have a high likelihood of default.
They said Santander exposed these borrowers to unnecessarily high levels of risk through high loan-to-value ratios, significant backend fees and high payment-to-income ratios.
(Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.)