Santander Faces CFPB Probe Into Credit Reporting Practices

Santander Holdings USA Inc. is facing a federal investigation into potential credit reporting violations.

The Consumer Financial Protection Bureau has sent Santander two civil investigative demands for information, the U.S. unit of the Spanish banking giant said in a Nov. 12 securities filing. The agency is probing potential violations of the Fair Credit Reporting Act over the last two years, the company said.

The CFPB investigation follows an $11.8 million settlement with Santander in November 2018, over charges that the company’s disclosures on auto loan add-on products allegedly resulted in unnecessary consumer fees.

Santander said in the filing that ...