Santander Consumer USA Inc.
On December 22, 2020, the Consumer Financial Protection Bureau (Bureau) issued a consent order against Santander Consumer USA Inc. (Santander). Santander, a subsidiary of Banco Santander S.A., is a leading originator and servicer of nonprime auto loans and leases. Santander furnishes credit information on the auto loans it services by sending monthly data files to consumer reporting agencies (CRAs). The Bureau found that between January 2016 and August 2019 Santander violated the Fair Credit Reporting Act (FCRA) and Regulation V by furnishing consumer loan information to CRAs that it knew or reasonably should have known was inaccurate; failing to promptly update and correct information it furnished that it later determined was incomplete; failing to provide the date of first delinquency on certain delinquent or charged-off accounts; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs. These violations of the FCRA and Regulation V constituted violations of the Consumer Financial Protection Act of 2010 and could have negatively impacted consumers’ credit scores and access to credit in many instances. The consent order requires Santander to take certain steps to prevent future violations and imposes a $4,750,000 civil money penalty.