• Sat. May 14th, 2022

Arkansas consumers will receive $30 million after settlement with auto lender

ByTina R. Wimmer

Mar 11, 2021

LITTLE ROCK, Ark. (KAIT/TALK BUSINESS & POLITICS) – An investigation by nearly three dozen attorneys general across the country will yield nearly $30 million in direct payments and consumer debt relief in Arkansas, Arkansas said this week. Attorney General Leslie Rutledge.

According to a report by content partner Talk Business & Politicssettlement with Santander Consumer USA covered nearly $550 million in overall consumer relief

At least 13,000 Arkansans could be eligible for the $30 million under the settlement filed in Pulaski County Circuit Court in Little Rock.

Officials alleged the company violated consumer protection laws by placing subprime consumers in high-risk auto loans with a high probability of default, Talk Business & Politics reported.

Rutledge said in a press release that the company’s actions would not be tolerated by his office.

“Santander’s predatory actions targeted the Arkansans for high-risk auto loans, and now he will pay handsomely for his deceptive practices. The standards set by this settlement should serve as a warning to other bad actors who take advantage of financially vulnerable Arkansans: we will fight for consumers and there will be serious consequences for unlawful actions,” Rutledge said.

In addition to the $30 million, the company will also pay $65 million to states for consumer restitution and waive nearly $433 million for people who still owe loans.

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