Santander Settles U.S. Auto Financing Case for $550 Million (1)

Banco Santander SA’s auto financing unit in the U.S. agreed to settle a multi-state dispute with U.S. consumers for more than $550 million, according to a group of 34 state attorneys general led by Kwame Raoul of Illinois.

Santander violated consumer protection laws by selling auto loans that it knew had a high probability of default, the group of legal officials said. The bank agreed to pay $65 million to subprime consumers from the 34 states who defaulted on loans in the decade through 2019. Defaulters after that period will receive as much as $45 million in loan forgiveness ...