The following is the press release from Attorney General Lynn Fitch:
Santander will pay Mississippi $ 3.7 million; misled consumers are entitled to a refund.
“I remain unwavering in my commitment to protecting Mississippi consumers from unscrupulous and deceptive business practices designed to defraud their hard earned money from them. This settlement will bring significant relief to affected consumers and provide future protection against predatory lending practices, ”Lynn told Fitch.
Attorney General Lynn Fitch reached an agreement with Santander to resolve allegations that Santander violated the Mississippi Consumer Protection Act by exposing Mississippi consumers to high levels of risk, placing these consumers on auto loans with a high probability of default and adopting aggressive collection practices. …
“I remain unwavering in my commitment to protecting Mississippi consumers from dishonest and deceptive business practices designed to extort hard-earned money from them,” said Attorney General Lynn Fitch. “This settlement will bring significant relief to affected consumers and provide future protection against predatory lending practices.”
Under the terms of the agreement, Santander will pay Mississippi $ 3.7 million, including $ 1.8 million in direct consumer reimbursement. Santander also agreed to end efforts to collect any loans repaid under Mississippi law by providing relief to thousands of Mississippi consumers.
In addition, in the future, Santander must:
– Taking into account the consumer’s ability to repay the loan
– Set a reasonable threshold for the debt-to-income ratio to reasonably assess the consumer’s ability to pay.
– Do not require dealers to sell any additional products (for example, vehicle service contracts)
– Monitoring dealers for possible revenue inflation, capacity reservations or cost deflation
– Do not distort the consumer’s perspective to buy back the vehicle that has been returned to possession
– Do not require consumers to make payments using methods that require the consumer to pay additional third-party fees, such as money order.
– Make no attempt to collect loans repaid under Mississippi law and must notify all relevant credit reporting agencies that debts have been repaid.
Over the next several months, eligible consumers will be contacted by the Mississippi Attorney General’s Office and notify them that they are eligible for restitution.
If you have questions about restitution, visit www.SantanderMississippiAGSettlement.com or call 1-877-465-4894 to speak with a representative.