BOSTON (Legal Newsline) – National auto lender Santander has agreed to pay $5.4 million in relief over allegations it charged excessive interest rates.
Attorney General Maura Healy announced recently that more than 450 Massachusetts consumers will receive portions of the relief money and Santander will eliminate interest on certain loans it purchased. These loans allegedly included excessive interest rates. Additionally, Santander will forgive outstanding interest on the loans and reimburse consumers for already paid debts.
“Consumers need to know that when they take out a loan, they will be treated fairly,” Healey said. “It is important that protections under state law are properly applied, especially when it comes to economically disadvantaged consumers in Massachusetts.”
On average, each consumer will receive approximately $11,000 in relief from the settlement. The consumers come from all over the state, with the most coming from Boston, Worcester, Springfield, Pittsfield and Lowell.
Assistant Attorney General Aaron Lamb handled the case, along with Investigations Supervisor Arwen Thoman, mathematician Burt Feinberg, legal analyst John-Michael Partesotti, and Division Chief Glenn Kaplan of the Attorney General Maura Healey’s Insurance and Financial Services Division.
The office of the attorney general plans to continue to review practices in the subprime auto lending area.