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Lease & finance · Auto lender records
Santander Consumer USA is one of the largest subprime and near-prime auto finance companies in the country, buying loan contracts from dealers under its own name and under the Chrysler Capital and RoadLoans brands. Like the other companies covered on our auto lenders hub, it is a separate legal entity from the dealership where the car was purchased, and it carries its own regulatory history. This page summarizes that history with a citation for every fact and explains the statutes involved. Where a dealer's conduct is also part of what happened, a free case evaluation looks at both together.
Who Santander Consumer USA Is
Santander Consumer USA Inc. is headquartered in Dallas, Texas, and is a subsidiary of Banco Santander, S.A., according to the company's own site. The company finances new and used vehicle purchases nationwide, operating consumer-facing brands including Chrysler Capital, its financing arrangement with Stellantis dealers, and RoadLoans, its direct-to-consumer online lending brand. Santander Consumer USA Holdings Inc., the company's former public holding structure, once traded on the New York Stock Exchange under the ticker SC before Santander Holdings USA, Inc. took the company fully private within the Santander corporate family.
The Public Enforcement Record
Multistate attorney general settlement (2020)
On May 19–20, 2020, a coalition of attorneys general from 34 states and the District of Columbia announced a settlement resolving allegations that Santander Consumer USA approved high-risk subprime auto loans with expected default rates the company projected would exceed 70 percent in some cases, relied on excessive loan-to-value and payment-to-income ratios, failed to adequately monitor dealers for falsified borrower income information, and required dealers to sell add-on products that increased loan risk without corresponding underwriting adjustments. The settlement totaled more than $550 million nationwide, including roughly $433 million in immediate loan forgiveness, up to $45 million in deficiency-balance waivers for the lowest-quality defaulted loans, and additional restitution and deficiency relief for loans Santander no longer owned. See the California Attorney General's announcement. Vermont separately announced $75,000 in restitution for its consumers and a $30,000 payment to the state; see the Vermont Attorney General's release. The press releases cited here do not include a specific admission-of-wrongdoing statement by Santander.
CFPB consent order (2020)
On December 22, 2020, the Consumer Financial Protection Bureau issued a consent order against Santander Consumer USA Inc. for violations of the Fair Credit Reporting Act and Regulation V. The CFPB alleged that, between January 2016 and August 2019, Santander furnished inaccurate auto loan account information to the credit reporting agencies, failed to promptly correct information it later determined was inaccurate, omitted first-delinquency dates on certain charged-off accounts, and lacked reasonable written policies for the accuracy of furnished information. The order required a $4.75 million civil money penalty and corrective measures. See the CFPB's press release and the consent order docket page.
The Statutes at Issue, and How They Protect Buyers in Florida, Vermont, D.C., Michigan, and Texas
The Santander matters centered on subprime underwriting practices, dealer oversight, and credit reporting accuracy under the Fair Credit Reporting Act. Buyers in the jurisdictions this firm handles have parallel, individual rights under state and federal law:
- Florida. The Florida Deceptive and Unfair Trade Practices Act, sections 501.201–.213, Florida Statutes, reaches unfair loan practices and dealer add-on sales; Article 9 repossession and deficiency rules appear at sections 679.609, 679.611–.614, and 679.625, Florida Statutes.
- Vermont. The Consumer Protection Act, 9 V.S.A. § 2453, with a private right of action under 9 V.S.A. § 2461(b) for actual damages or the consideration paid, plus exemplary damages up to three times that amount; Article 9 repossession duties appear at 9A V.S.A. §§ 9-609, 9-611–9-614, and 9-625.
- Washington, D.C. The Consumer Protection Procedures Act, D.C. Code § 28-3904, with treble damages or $1,500 per violation under D.C. Code § 28-3905(k)(2); repossession duties appear at D.C. Code §§ 28:9-609, 28:9-611–28:9-614, and 28:9-625.
- Michigan. The Michigan Consumer Protection Act, MCL 445.903, following the Michigan Supreme Court's July 31, 2026 decision in Attorney General v. Eli Lilly and Company narrowing an earlier exemption, a decision that is recent and still being applied by lower courts; the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., applies to credit-reporting conduct regardless of state; Article 9 repossession duties appear at MCL 440.9609, 440.9611, 440.9614, and 440.9625.
- Texas. The Deceptive Trade Practices–Consumer Protection Act, Tex. Bus. & Com. Code § 17.46(b), subject to the 60-day pre-suit notice in § 17.505; repossession duties appear at Tex. Bus. & Com. Code §§ 9.609, 9.611, 9.614, and 9.625.
Because Santander buys and services dealer-originated contracts, the FTC's Holder Rule, 16 C.F.R. Part 433, and the Truth in Lending Act, 15 U.S.C. § 1601 et seq., apply in the same way described on our auto lenders page: a claim against the selling dealer can, under the Holder Rule notice on the contract, extend to the finance company that later bought it, and TILA governs how the loan's cost had to be disclosed at signing.
What Matters If Your Loan Is With Santander Consumer USA
- Credit report accuracy. Because the 2020 CFPB order addressed furnished-data errors between January 2016 and August 2019, a credit report showing an incorrect delinquency date, balance, or account status from that window is evidence worth preserving, alongside any dispute letters sent and the responses received.
- The underwriting file, if available. Documents showing the loan-to-value ratio, payment-to-income calculation, or add-on products included at signing are what the 2020 multistate settlement's underwriting allegations turn on.
- Repossession and deficiency records. The 2020 settlement included deficiency waivers for specific groups of defaulted borrowers; whether a particular account falls into one of those groups is a question about that account's own dates and loan characteristics, separate from the notice and sale requirements under state Article 9 law.
- The dealer's role. Where a dealer's own representations about a vehicle or its financing are part of the picture, the Holder Rule notice on the contract is what connects that conduct to Santander as the loan's assignee.
A free case evaluation with the retail installment contract, credit reports, and payment history is how these are reviewed together.
Santander Consumer USA Questions
Is Santander Consumer USA the same as Santander Bank?
What did the 2020 multistate settlement resolve?
What did the CFPB allege about Santander and credit reporting?
Did Santander admit wrongdoing in these matters?
Loan with Santander Consumer USA, Chrysler Capital, or RoadLoans, and a repossession or credit reporting issue?
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