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Mass. AG Investigating Santander’s Subprime Lending Business

December 30, 2014

BOSTON — Massachusetts Attorney General Martha Coakley has subpoenaed Santander Consumer USA, requiring that the finance source produce documents related to its subprime auto lending business. The AG is also questioning a handful of other auto lenders, which she declined to name, the Boston Globe reports.

Earlier in December, Santander and six other auto lenders received subpoenas from the New York Department of Financial Services over discriminatory practices that allegedly caused minority car buyers to pay more for auto loans.

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Comments

  1. 1. Sheldon Wolff [ January 03, 2015 @ 06:46AM ]

    This issue has a multitude of faults, first why are our nations banks owned and operated by foreign investors, this includes TD a Canadian bank, and others, shouldn't America control it's financial path?. Sub prime loans are nothing more than shooting craps, the higher the risk, the higher the cost, charges and often the returns. Historically poor credit generated bad loans, however with the recent economic downturn created issues for a lot of good citizens. Having dependable and affordable transportation today is a necessity and not a luxury to get to work, school, hospital, or whatever. If you're in a rural settining there is no taxis bus service rentals or even car or ride sharing. Not only are the banks issuing, promoting, and buying predatory lending instruments, but it is encouraged at dealerships. Every subprime borrower wants a big SUV , latest and biggest Honda, Toyota,escalade, or pickup. The salesperson just slams the borrower into what ever they want because once it's tailights over the curb, it's done. Rather than doing a proper financial annaylsis of affordability,needs and desires. This really needs to be done for the loan to come to fruition. The dealers also need to be more attuned to the financial situation of the borrower. Fix the top with trickle down procedures and fix the initial process in the application there will be better loans and lower interest rates. Another big issue is big bank credit cards predatory interest rates!

 

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