According to the NYDFS Consent Order and release:
· Santander permits consumers to request an extension of time to make payments on automobile loans.
· Santander told consumers they could obtain the extension for a single $25 extension fee, when in practice Santander charged borrowers an extension fee of $25.00 per month.
· Notable here is timing. Santander voluntarily ceased charging undisclosed fees in May 2017. This was prior to a NYDFS Consumer Compliance and Fair Lending Examination focusing on Santander’s automobile lending activities for the period January 1, 2016, to December 31, 2018.
· Santander must provide restitution to consumers in the amount of $237,000 in undisclosed fees, and pay a civil penalty of $400,000 for violation of Banking Law Section 350, which prohibits false, misleading or deceptive representations regarding lending.