AG investigating Santander subprime auto lending practices
Massachusetts Attorney General Martha Coakley’s office is investigating Santander Bank’s subprime auto lending practices amid national concern over the predatory lending that led to the recession that started in 2008.
“There is a lot more action in the subprime loan market. There is a lot of interest in this area and concern in this market,” Brad Puffer, spokesman for AG Coakley, said Friday, explaining that there is an increase in the prevalence of these loans with more borrowers falling behind on payments.
Puffer confirmed that the office was investigating Santander’s lending practices, a fact that was originally reported by The Boston Globe. The AG's office has not made any allegations as a result of the ongoing investigation.
Santander Bank has 29 Central Massachusetts branches. A company spokesperson declined to comment on the investigation on Friday, instead releasing a statement that it is company policy to “comply with all fair lending and loan servicing laws, as well as the rules and guidance of our supervisors and regulatory agencies.”
The Massachusetts AG’s office is looking at a wide-range of businesses involved in the subprime auto loan industry throughout the state, although Puffer declined to indicate which companies.
The Massachusetts AG has joined other attorney generals from across the nation in looking at subprime lending across many areas, Puffer said, with the concern being impact on consumers.
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