Santander to Pay $400,000 Fine to Settle NY Auto Loan Fee Claims

Banco Santander SA’s US auto finance unit will pay a $400,000 penalty after an investigation by New York’s financial regulator found the company imposed undisclosed loan extension fees.

Santander Consumer USA Inc. will also have to make restitution payments to eligible impacted borrowers, according to the settlement announced Wednesday. Those borrowers, including New York residents who were charged an extension fee from Feb. 19, 2016, through May 10, 2017, are slated to receive more than $275,000 in total, New York’s Department of Financial Services said in a press release.

The department’s investigation revealed Santander Consumer displayed a single $25 ...