Arizona car buyers eligible for relief after settlement with auto lender
May 26, 2020, 4:05 AM | Updated: 11:05 am
(Pixabay Photo)
(Pixabay Photo)
PHOENIX — Thousands of Arizona car buyers are eligible for financial relief after a multi-million dollar settlement with an auto loan financing company.
Attorney General Mark Brnovich, and attorneys general from 34 other states, announced the settlement with Santander Consumer USA Inc. over allegations of issuing high-interest loans to individuals who were likely to default.
The company will pay out $550 million in the settlement across the states.
“Santander knowingly put Arizonans into loans they couldn’t afford, setting them up for years of financial hardship,” Brnovich said in a press release.
“This settlement holds Santander accountable and provides thousands of Arizona consumers with much-needed financial relief.”
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It is also alleged the company failed to monitor dealer falsification of income and expenses, engaged in deceptive servicing practices and actively mislead customers about the risks of partial payments and loan extensions.
Over 12,000 Arizona consumers who defaulted on loans between January 2010 and December 2019 will receive a check for at least $224.80, according to the release, totaling over $2.7 million in restitution for people in the state.
Depending on how many consumers can be located nationwide, a second check will be mailed out if additional funds become available.
Arizonans could also receive an average of just under $14,000 in loan forgiveness under the settlement terms and an average of over $9,500 for loans securitized by third parities if Santander can repurchase them.
For those with the lowest quality loans who defaulted as of Dec. 31, 2019, and have not had their cars repossessed, the company will also waive any outstanding balance on the car and allow the consumers to keep it.
Eligible consumers have already been identified by the company, according to the release.
Those who think they may be eligible or would like to find out more information can visit the settlement’s website.
Santander said in a statement, “We are pleased to put this matter behind us.”
The Associated Press contributed to this report.
