Arkansas consumers to receive $30 million after settlement with auto loan lender

Arkansas consumers to receive $30 million after settlement with auto loan lender

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

According to a report from content partner Talk Business & Politics, the settlement with Santander Consumer USA covered nearly $550 million in overall relief to consumers

At least 13,000 Arkansans may be eligible for the $30 million as part of the settlement filed in Pulaski County Circuit Court in Little Rock.

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

Rutledge said in a media release that the actions of the company would not be tolerated by her office.

“Santander’s predatory actions targeted Arkansans for high-risk auto loans, and now it will pay handsomely for its 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 do the fighting for consumers and there will be severe consequences for illegal 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 on loans.

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